Get the Answers to Common Questions

Real Estate is a tangible and stable asset class that has been a leading performer of returns throughout history. It is a favorite among large institutional and High Net Worth investors for many reasons including:

- Growth in value over long periods of time and less volatility than public financial markets, offering stability in turbulent times.

- Growth in value over long periods of time and less volatility than public financial markets, offering stability in turbulent times.

-Productive asset that generates predictable income from rent.

- Enhances the quality of the risk-return profile of the portfolio when included in a diversified portfolio of different asset classes,

ByStake has obtained the approval from the Capital Market Authority (CMA) in Saudi Arabia to enter its FinTech Lab! We plan to launch KSA real estate investment opportunities on our app by within the next few months.

We will soon make it easy and accessible for both Saudi investors and anyone anywhere in the world to participate in real estate investment funds targeting attractive developments and income-generating assets across Saudi Arabia.

Investing in myState real estate fund is seamless! Here’s a step-by-step of what occurs:

1. Fund is listed on ByStake

A fund is listed on ByStake for investment. It will be listed for X amount of days based on the fund deadline, during which you’ll be able to invest.

2. Fund clos

Once enough money is raised, the fund is closed and the investments raised are distributed to the fund manager. Allocations are confirmed and the unit holder registry becomes available for confirmation purposes.

3. Fund commences operations

The fund manager begins investing and managing the collected capital into real estate assets.

4. Distributions begin

Investors will begin to receive their dividends/distributions on a period basis based on the fund type

5. Fund Closes

The fund reaches its term or strategic goals. The fund manager looks to liquidates its assets, and return the capital and final profits to investors. The tentative dates for all steps in the process are provided in each listing

Annual appreciation

: projected growth in the market value of the asset over 1 year

For example, consider a property that is acquired at a price of AED 1,000,000 with buying costs worth AED 100,000. The total investment amount is AED 1,100,000.

Assuming the property is sold after a few years at a price of AED 1,500,000 (net of selling costs), the capital appreciation is AED 400,000, or 36.4% (i.e. AED 400,000 / AED 1,100,000).

Yearly investment return:

Total ROI over 5 years (rental income/net yield + annual appreciation) however averaged on an annual basis.

Our properties usually have around a 50% total ROI over 5 years, so averaging out over a yearly basis is around 10%.

Dividend:

The payout an investor in an asset receives after subtracting all costs.

For example, in the case of 10 investors co-owning a property, the dividend is the payment each investor receives. It is the total rent generated by the property divided by 10 (minus all costs).

Gross yield: projected annual percentage return that investment generates before deducting all expenses, like management fees and maintenance costs

For example, if a property is priced at AED 1,000,000 and rented for AED 100,000 per year, that property generates a gross income of AED 100,000 and a gross yield of 10%.

Funding target:

The capital required to be raised in order to complete the purchase of the property.

For example if a fund is looking to purchase a property at a price of AED 1,000,000 and executing the transaction incurs costs of AED 50,000 the funding target will be AED 1,050,000.

My Property Portfolio:

The collection of all the property investments that you hold with bystake.

Please note that ByStake does not provide discretionary portfolio management. What does that mean for you? It means that bystake will not manage or make decision on your behalf. Which means you have all the say and decision making power.

Net yield:

projected annual percentage return that investment generates after all expenses are deducted.

For example, consider a property that is priced at AED 1,000,000 and rented for AED 100,000 per year, and has costs of AED 25,000 per year. The property generates a net income of AED 75,000 and a net yield of 7.5%.

ROI (Return on Investment):

The ratio of the price differentials of an asset at the end of a period plus all the income generated by an asset to the original price paid for that asset.

For example a property that is purchased for price A and sold after 5 years for price B, the ROI is:

[B-A+Rental income during the 5 years]/A.

SPV (Special Purpose Vehicle):

A company created for the purpose of executing a single transaction.

In the case of bystake every property will be purchased through an individual SPV. This allows us to streamline the investment process through granting shares in the property's SPV to its shareholders.

Title deed:

An official document registered with the real estate regulator validating the owner/ owners of a property.

Transaction costs:

The additional costs incurred during the execution of a deal in addition to the asset purchase price.

For example, purchasing investment property in Dubai requires paying transfer fees, registration fees, and some additional charges like valuation and KYC charges.