Housing as an Asset: How Price per Square Meter, Deposit and Rent, and Transaction Costs Work

For us Iranians, a home is both a shelter and our largest asset; this time, let us look at it as an investment. In this lesson we learn how price per square meter, deposit, and rent work. For most households a home is both a residence and their biggest savings. Housing is a real asset, a physical good, unlike stocks or bank deposits. We express each home's price per square meter, the meter price times the area. But price per square meter is only an average; it never replaces inspecting each unit. The deposit, called rahn, is refundable, while rent is the monthly payment. Deposit and rent convert into each other; the rate is a market custom, not fixed. Suppose the rate is three percent; every hundred million tomans of deposit equals about three million in rent. On a hypothetical seven and a half billion toman home, the buyer's commission is about twenty million tomans. Sale commission is half a percent up to the cap and a quarter percent on the excess, per party. Under Article fifty-nine, the transfer tax is five percent of assessed value, not the market price. Home prices usually jump, then stay nominally flat for a long time. Rent is smoother; rent inflation in June twenty twenty-six was about thirty-one percent. It is a common mistake to think housing always profits; measure return against inflation. Selling a home is slow and costly; its liquidity differs from gold or stocks. Price per meter, deposit and rent, transaction cost, and real return: four keys to housing. Find the full lesson on Sahmino.com; got a question? Drop a comment.