Begin with the full cost
The advertised price is only the beginning. Transaction charges, finance costs, service charges, repairs and time without a tenant can change the economics. Costs vary by location and property.
Gross rent is not the return
Rental yield before expenses leaves out part of the picture. A useful comparison includes realistic recurring costs and the cash tied up in the purchase. Price appreciation is a separate, uncertain outcome.
Think about the exit
How many potential buyers could afford this property? How long might a sale take? A payment plan can make the entry feel easier without making the eventual sale any easier.
UAE, India and the US
I discuss all three markets, but a headline about one city cannot describe an entire country. Local supply, tenant demand, ownership rules and financing need to be checked for the specific property.
My takeaway
A home can be worthwhile for reasons beyond investment returns. For an investment, I want the numbers to stand on their own without assuming a quick resale at a higher price.