Earn 27% more: invest with a rental income strategy

Purchase an apartment with a 0% installment plan. Once you receive the keys, switch to a mortgage and use rental income to cover the remaining installment balance. This strategy ensures a passive income 27% higher than your monthly mortgage payments.

Let’s take a villa in the Saadiyat Lagoons project in Abu Dhabi for $2,287,000 to see how this plan works.

Deal timeline

• Autumn 2024 – Pay the first installment: $644,500.

• December 31, 2024 – Make the second installment: $108,000.

• July 31, 2025 – Make the third installment: $108,000.

• Handover in Q2 2025 – A mortgage is arranged to settle the remaining balance.

• Within 2-3 weeks – A tenant is secured for your property.

Mortgage details

• Initial payment: 50% – $760,000.

• Term: 10 years.

• Monthly mortgage payments: $8,050.

• Rental income: $10,210.

Breakdown of the first payment $644,500

• Tax (2%): $43,300.

• Administrative fees (developer): $1,100.

• Agency commission (2% + 5% VAT): $48,000.

• Assignment fee: $118,500.

• Payment to seller (20% already paid to developer): $433,600.

Earn 27% more

This is the difference between your rental income and monthly mortgage payments. Over the 10-year mortgage term, you’ll generate income from your villa while paying off the remaining installment balance.

We’ll help you secure a tenant immediately after handover.