Mr. Simon buys a fine-looking Saheel (Type 7) 3 Bedroom Villa in the Arabian Ranches for AED 3,300,000. He is able to secure financing with HSBC at 80% LTV over a 20 year repayment period. 
 
Henceforth the loan/mortgage amount is 80% of 3,300,000 that is 2,640,000.

Original Investment:
He makes a down payment of AED 660,000 to make up the difference. A typical repayment mortgage interest rate for the Dubai market is 8.5% annually.

Financing Cost:
The monthly mortgage repayment is:
Interest only Mortgage:  2,640,000 (loan/mortgage amount) * 0.085 (Interest rate) =
AED 224,400 / 12 (months) = AED 18,700 per month.

Repayment Mortgage
Including the repayment portion of the loan = AED 278,964 / 12 (months) = AED 23,247per month

Rental Income:
Typical rental income for a villa in the Arabian Ranches (Type 7) is AED 170,000 annually which is a rental yield of around 5.15%. A benefit to rent property in Dubai is that rents are paid annually and in advance.

Net income from rent is:
Interest only Mortgage: 170,000 (Rental income) – 224,400 (Mortgage payment) =
AED -54,400

Mr. Simon pays a difference of AED -54,400 if he opted for the interest only mortgage.   

Repayment Mortgage: 170,000 (Rental income) – 278,964 (Mortgage payment) = AED -108,964

Mr. Simon pays a difference of AED 108,964 if he opted for the re-payment mortgage.

Looking at property selling prices over 2005 and 2006, property has appreciated 30% on average annually in Dubai.
 
Capital Appreciation:
 Increase of 30% annually: 3,300,000 * 0.3 = 990,000

Return on Investment: Mr. Simon had a fruitful return of 141% on his initial investment of AED 660,000 in just 2 years. 
Interest only Mortgage: -54,400 (Rental return) + 990,000 (Capital appreciation) =
AED 935,600

Return on Investment: 935,600 / 660,000 (Down payment) = 141%
 
Mr. Simon still had a beneficial return of 133% on his initial investment of AED 660,000 if opted for the re-payment mortgage.
Re-payment Mortgage: -108,964 (Rental return) + 990,000 (Capital appreciation) =
AED 881,036

Return on Investment: 881,036 / 660,000 (Down payment) = 133%
 
In either case Mr. Simon took advantage by investing in the Dubai property market and Dubai is still a growing and an appreciating market of the future.