Ask the Agent- Freehold
Dhiren Gupta- Managing Director, 4C Mortgage Consultancy
Explain the rental yield and how to calculate it on any residential real estate investment? What are the things I need to understand to calculate the percentage?
Rental yield is the percentage of income yield over the fee affiliated with an asset property, typically articulated as a share. It's recurrently used metric in property statistics, and it is imperative to comprehend how it’s considered and what it essentially specifies.
This mathematical equation is fairly simple and used to compare property price and location value against each other. To put it in simple word rental yield is the amount of money a property owner receives in rent over one year, which
…show more content…
The property is currently rented.
There is an option to pull out equity from the cash bought property as a non-UAE resident. However, in order to qualify for the refinance options, the bank will study applicant’s income source from the resident country along with the personal and property documents to identify the loan to value ratio.
The equity release process is similar to new loan process, wherein the loan amount identified on the current market value of the property. Once the mortgagor qualifies for the loan the bank get the evaluation from the third-party to identify the current value of the property and based on that value the bank lend the money. If the property is currently rented and the owner has a proof of that amount, then the bank considers it as a source of income. Some selected banks in UAE have products which qualify the owners to pull out cash against the property, on pure rental value if another source of income is not defined. Moreover, they have pre-defined benchmark calculations, which make the mortgagor, qualify for the product. An expert guidance could be an added value to
…show more content…
Anyone, who is willing to invest in Dubai are most welcomed to own the residency project offered by different Dubai based government and private real estate developers in several locations. Moreover, with stringent and appropriate Dubai Real Estate Authority guidelines, the investment in Dubai is more efficient and protected, which safeguards buyers interest. So, if you are willing to invest in some property feel free to explore the market or take expert guidance for the best value for your investment. However, if still willing to acquire residency you can buy a property worth Dh 1 Million or above to get eligible for investors