Case Study 123
Strategic Real Estate Investment in Dubai
How TMRC Financing Broker helped Russian client Oksana achieve exceptional returns through intelligent mortgage financing in Dubai's Armada Tower 3.
Armada Tower 3 Investment
Premium property in Dubai's established secondary market.
84.7% Mortgage Financing
Optimized capital allocation preserving liquidity.
27.5% Property Appreciation
From AED 800,000 to AED 1,020,000 in 8 months.
85.8% Return on Investment
Significantly higher returns through mortgage leverage.
Case Summary
Russian investor Oksana aimed to expand their portfolio by purchasing a property in Dubai's secondary market, seeking both stable investment and future growth opportunities. With expert assistance from TMRC Financing Broker, she secured a prime property in Armada Tower 3.
The Pitfalls of All-Cash Property Purchase
Revealing the Hidden Risks of a Cash-Only Strategy
Oksana initially considered purchasing the property using her entire savings. While an all-cash purchase may appear straightforward and convenient, it brought to light several unforeseen challenges:
- No Credit History: Missing the opportunity to establish essential credit history for future financial growth
- Reduced Liquidity: Tying up all funds in a single property, limiting ability to capitalize on other opportunities
- Lower Profit Margin: Without leveraging financing, experiencing reduced returns on invested capital
- Missed Strategic Benefits: Unable to strategically benefit from rental income coverage
This scenario emphasizes the need to consider financing solutions that preserve liquidity, expand investment possibilities, and promote long-term financial resilience.
Cash Purchase Breakdown
Total investment required including all statutory fees for cash purchase.
| Item | Amount (AED) | Amount (USD) |
|---|---|---|
| Property Value | 800,000 | 217,807 |
| DLD Fee 4% | 32,000 | 8,712 |
| Agent Fee 2% | 16,000 | 4,356 |
| Trustee & Title Deed Fee | 4,490 | 1,222 |
| Total Investment | 852,490 | 232,097 |
| Current Value (Dec 2024) | 1,020,000 | 277,625 |
| Profit on Investment | 167,510 | 45,528 |
Mortgage Purchase (Through TMRC FB)
Strategic financing maximizing returns while preserving liquidity.
| Item | AED | USD |
|---|---|---|
| Downpayment & Other Expenses | 226,905 | 61,777 |
| Bank Finance | 678,400 | 184,701 |
| Current Market Value (Dec 2024) | 1,020,000 | 277,625 |
| Minus Bank Finance | 678,400 | 184,701 |
| Profit on Invested Amount | 341,600 | 92,924 |
Investment Structure Comparison
Visual breakdown of capital allocation and returns
Cash Purchase Structure
Invested Money: 77.5%
Profit: 22.5%
Total Investment: AED 852,490
Mortgage Structure
Bank Finance: 61.7%
Invested Money: 20.6%
Profit: 17.7%
Own Investment: AED 226,905
Return on Investment Analysis
How mortgage financing dramatically improves returns on invested capital
Cash Purchase Returns
Total Investment: AED 852,490
Profit: AED 167,510
ROI: 19.6%
Lower returns due to full capital commitmentMortgage Purchase Returns
Own Investment: AED 226,905
Profit: AED 341,600
ROI: 150.5%
7.7x higher ROI through strategic financingIntelligent Investments, Profitable Outcomes
Investing in property in Dubai offers a distinct benefit: the rental income from your property can cover your mortgage payments. This means your investment not only appreciates in value over time but also sustains itself, providing you with financial independence and long-term profits.
YOUR UNUSED FUNDS REMAIN SECURE, OFFERING YOU THE FLEXIBILITY TO PURSUE OTHER OPPORTUNITIES WHILE YOUR PROPERTY CONTINUES TO GENERATE INCOME
With Dubai's stable real estate market and strong rental demand, it's an ideal location for making smart investment choices with reliable prospects for sustained growth over the long term.
Vision to Reality
One step ahead
Turning Dreams into Reality
1202 Conrad Business Tower, Sheikh Zayed Rd, Dubai, UAE
P.O Box: 37547