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Returns
How do returns work?
How do returns work?
Written by Raahym Malik
Updated over a week ago

At Stake, you benefit from two types of returns:

1. Rental income:

Your share of the rental income of a property will be distributed to your Stake wallet. We aim to distribute dividends on a monthly basis.

Your dividends will be paid into your wallet and can be withdrawn or reinvested.

2. Capital appreciation:

This is the amount by which your investment is increases in value over time. This will be realized when you exit your investment.

Example:

Suppose you decide to invest in a property using Stake with a net yield of 6%. This means that you can anticipate earning an 6% return on your investment through rental income annually. To calculate your potential returns, follow these steps:

Determine the amount you wish to invest, let's say AED 30,000.

Multiply the investment amount by the net yield percentage: AED 30,000 x 6% = AED 1,800 per year.

Since you receive rental income monthly, divide the annual income by 12 months: AED 1,800 / 12 = AED 150 per month

Properties also have the potential to appreciate in value over time.

If the property you invested in is projected to appreciate at a rate of 6% per year, it means that the value of your investment is expected to grow by 6% annually. Let's consider the AED 30,000 investment again:

Initial investment: AED 30,000.

Projected annual property appreciation: 6%.

Multiply the investment amount by the appreciation rate: AED 30,000 x 6% = AED 1,800 per year.

In summary, in this example, you can expect to make:

AED 1,800 per year in rental income and AED 1800 per year in value appreciation = AED 3,600 per year.

It's important to note that any profit from appreciation would only be realized once you sell your shares.