Resources - ROI calculation
| Calculation on Return on Investment | ||||
| Original price | 1200 AED | |||
| Premium: | 20% | |||
| Premium AED: | 240 AED | |||
| Purchasing price now | 1350 AED | |||
| Payment plan | ||||
| Payable now + premium | 50% | 840 AED | ||
| Payable on handover | 50% | 600 AED | ||
| Selling price in 1 year (expected) | 1700 AED | |||
| Profit | 41% | 350 AED | ||
1. The property has to be sold prior to completion or around completion
In the porfit calculation the "payable on handover" amount is not included, as the final instalment will not be paid in or will only be paid in for a short time.
2. Favourable payment term: 50% payable on completion, which means a higher profit for the seller in proportion to the investment amount.