HOW TO CALCULATE ROI : RETURN ON INVESTMENT | DUBAI REAL ESTATE MASTERCLASS

Tahir Majithia is a luxury real estate consultant in Dubai, UAE. In this episode of Tahir’s Real Estate Masterclass, he explains how to correctly calculate the ROI you would get from your property investment in Dubai. He covers all the associated costs when purchasing a property so that you can understand what the actual net ROI of your investment will be. If you are considering buying a property in Dubai for investment then this video will be extremely helpful. Enjoy and leave a comment if you’d like additional help from Tahir.
WORK WITH TAHIR
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WhatsApp: [phone]
/ tahirmajithia
[e-mail]
MASTERCLASS CHAPTERS
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00:00 Return on Investment Intro
00:44 Definition
00:56 Expectation Vs reality snapshot
01:17 Example of gross ROI calculation
01:36 Additional costs when purchasing a property
01:50 Example of accurate Net ROI calculation
03:04 What is a good ROI?
03:18 Currency exchange rates that can affect your ROI
03:44 Income Tax implications
04:19 ROI calculator
04:37 SLS Dubai
05:01 Contact Details
LOCATION SPONSOR
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This video was recorded at the show apartment of SLS DUBAI, a beautiful and iconic development in Business Bay getting ready for handover at the end of 2020. If you have a property you’d like to feature on Tahir’s Real Estate Masterclass or be seen on the Trusted Homes Dubai network, feel free to get in contact with us.
MADE IT THIS FAR?
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[@blackdrukpa]

after long time, i got an absolute idea about this basic calculation. I am really thankful to you. keep going sir.

[@kvio3321]

One of the few people in Dubai that knows how to calculate ROI.

[@tahirmajithia]

Thanks 🙏

[@prudentialpropertiesl.l.c2778]

Excellent Briefing

[@fareenaramachandran4491]

Thankyou very useful info.i will get back to you soon.

[@khan2031]

Excellent, very informative, clear and straight to the point. Thank you 😊

[@tahirmajithia]

Glad you liked it 👍🏻

[@investindxb3457]

Great video Taher,well presented and explained. Keep it up 👏

[@tahirmajithia]

Thanks a ton, glad you liked it

[@criticofthenarrative1382]

This video is full of rich & insightful content, the articulation is on spot, very simple to understand. I appreciate such pieces of information👍👍

[@tahirmajithia]

Thanks a lot for your great feedback really appreciate it 👍🏻👍🏻

[@indxb7140]

Thank you so much for explaining in a detailed way in a very short time. Really Appreciate your knowledge.

[@tahirmajithia]

🙏🙏🙏

[@johnsylvesterDT]

Thank you for the info. Very informative. Hopefully i would be able to learn more about real estate in UAE.

[@tahirmajithia]

Glad it was helpful!

[@asimhussain2702]

Thanks Mr Thahir.. For the great information 👍

[@tahirmajithia]

My pleasure

[@wahidachowdhury8846]

Hi Mr Tahir
I was watching your talk about ROI. Which is very informative. As a foreign investor I like to know how can I invest and what is amount of
investment to buy a apartment in Dubai

[@naumansaqeb7246]

Great video tahir 👏👏

[@tahirmajithia]

Thanks 😀

[@md.sharifulislam8903]

Excellent

[@dilshadmotivates]

Thank you Mr. Tahir

[@tahirmajithia]

You’re welcome

[@toqamanasarah4462]

Thank you so much. Very clear and quick explanation. Plz advice how to find the number of years until we return the cost of a property?

[@tahirmajithia]

Thanks a lot for your feedback, to know the number of years its simple just divide 100 / net roi you get every year to get the number of years till you recover your investment

[@user-vq6ic2ru1d]

What about return on investment of property price hikes

[@maheshmmmagu3795]

Thanks sir

[@tahirmajithia]

Welcome

[@SheldonSerrao]

Excellent presentation, Tahir.

[@tahirmajithia]

Thanks 🙏. Glad you liked it

[@SheldonSerrao]

@@tahirmajithia - You've broken it down so well. The information is so easy to absorb.

[@tahirmajithia]

@@SheldonSerrao thanks a lot.

[@atanudas8535]

More than 16 years will take(as per ROI) to recover my investment value if I give into the rents..is this possible that all investors shall get rents for 16 years?

[@sahargharsalli4175]

Can u please brief us more about ROE as well for real estate agents. And other things
I’m new in the real estate industry n I would like to know more as an agent .thank you

[@tahirmajithia]

There is a lot of content which I have on my channel will also one on ROE

[@mnas7523]

For long-term investors, why do you not factor in vacancy and loss rate, regular operating expenses like property Insurance and maintenance for major repairs to your property that the tenant is not obligated to pay?

[@tahirmajithia]

Yes on the long term there are other costs but very difficult to estimate those as it also depends on how good the property is built and how it’s used and maintained. Sometimes I’ve seen some properties not give any major maintenance for 10 years and some start giving problems in 3-4 years but it’s not a standard cost hence has not been factored in

[@younoob205]

you have said that the return of 6% is obviously lower than the interest rate, what are the average interest rates that we are looking for in the UAE for SMEs?
Also I have a question, if I buy a property, how will I make sure to rent that once I have in under my name? and what are the things to look for in a good property?

[@tahirmajithia]

The interest rates are lesser in dubai than the return

[@stevenindubai9073]

I have sent you an email - very good information - keep it up

[@tahirmajithia]

Thanks have replied to the same

[@u4ious]

Tahir Bhai thanks, nice vlogs quite informative.

[@tahirmajithia]

Thanks glad you like it

[@nethostinc.1670]

One does not pay any income tax from rental property in the USA, if one understands and use the Income Tax code correctly 😀

[@YachtingPrincess]

Per year?

[@tahirmajithia]

Yes

[@BaseInfraSolutions]

Hi
We can look to collaborate

[@tahirmajithia]

please email me on [e-mail]

[@CharbelSalemSLA]

The calculations are flawed. The fees are amortized in full the first year. Your calculation should take into consideration occupancy rate, maintenance costs and should take a forward looking view then discount them back to calculate ROI. And if your clients are taking out a mortgage, there’s the interest portion that needs to be included

[@tahirmajithia]

The calculation explained are purely based on cash purchase , if mortgage then yes the calculations will be obviously different. This is a broader explaination and can be different on a case to case basis but the basics remain the same. The fees paid while purchasing an investment property in my opinion should always be added to the investment to know your actual returns

[@BOSSBOSS-en7ee]

6% Year 😭😭😭🙄🙄🙄

[@marcorasool1593]

I heard u get 10% ,🤬

[@tahirmajithia]

Well yes some developers offer that high incentive to agents to sell but you will never find me promoting those developers. For me client interest comes before my interest and I am happy doing business that way.

[@ufc786]

Hi if I invest 5million dollars in to real estate can I make 1 million dollars annually in passive income? Can my ROI be high yet then 10% ????

[@malakalhashmi3066]

@@ufc786I know some and we can found higher than 10% if u interested we can collaborate