INVESTMENT RESEARCH • CAPITAL UNDERWRITING ENGINE
DLD & CBUAE Statutory Benchmarks
UNDERWRITE
THE ACQUISITION.
Deterministic financial memorandum for Dubai residential and prime freehold assets. Built on published Dubai Land Department tariffs, Central Bank mortgage caps, and natural person tax exemptions.
1 USD = 3.6725 AED
Official UAE Monetary Peg
01 • DLD TRANSFER FEE
4.00% Combined
Law No. 7 of 2006 (Standard statutory 2% buyer / 2% seller)
02 • MORTGAGE CAP
Up to 80% LTV
CBUAE maximum for first residential property under AED 5,000,000
03 • TAX STATUS
0% Personal Tax
Individuals are not subject to personal income or capital gains tax.
04 • MONETARY ANCHOR
1 USD = 3.6725 AED
Central Bank of the UAE statutory currency peg
INSTRUMENT PARAMETERS
Acquisition Assumptions
Property ValuationASSUMPTION
AED 10,000,000
AED 2,000,000AED 25,000,000AED 50,000,000
Capital Structure
Loan to Value (LTV)60% (AED 6,000,000)
Operating Yield Parameters
FINANCIAL MEMORANDUM
Statutory Acquisition Ledger
Asset Agreed ValueAED 10,000,000
DLD Sale Registration (4%)AED 400,000
DLD Admin & Map TariffAED 4,200
Registration Trustee FeeAED 4,200
Mortgage Registration (0.25%)AED 15,000
Mortgage Admin FeeAED 290
Statutory Legal & Conveyance Est.AED 10,500
TOTAL ACQUISITION OUTLAYAED 10,434,190
Initial Equity Required:AED 4,434,190
CASH FLOW & YIELD PROJECTIONS
NET OPERATING INCOMEAED 562,500Per Annum
UNLEVERED NET YIELD5.39%Net of service charges
Monthly Debt Service:AED 34,207.042 / mo
Cash-on-Cash Return:3.43% / yr