Acquisition costs

The general sale-contract registration charge totals 4% of sale value. DLD’s sale-registration page lists 2% for the seller and 2% for the buyer, alongside other service-dependent charges. Request a transaction-specific breakdown identifying each party’s payable amounts; the registration percentage is not an all-inclusive acquisition cost.

Holding costs

Service charges, maintenance, any contracted management, insurance and potential financing vary by asset. Check the approved project and year through the Service Charge Index, and the unit’s own expenses. Allow realistically for vacancy and maintenance rather than assuming full occupancy.

From gross to net

Gross rental yield compares annual rent with purchase price. For an unlevered net operating yield estimate, compare rental income after operating expenses with total acquisition cost. If borrowing, assess cash flow after debt service and return on invested cash separately. Do not mix these measures or treat an estimate as a commitment.

Start with a clear cost breakdown, then discuss income assumptions.
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