The home
The mortgage
Assumptions
Buying minus renting, year by year
Gold bars: buying is ahead. Red bars: renting is ahead.
Year by year
| Year | Home value | Mortgage left | Net worth: buy | Net worth: rent | Buy minus rent |
|---|
All figures in AED. Net worth if you buy is the home value minus the mortgage left and the cost of selling. Net worth if you rent is the deposit, buying costs and monthly savings, invested at your chosen return.
Frequently asked questions
Is it better to rent or buy in Dubai?
It depends on how long you plan to stay, the price compared with the rent for a similar home, and what you would do with your money otherwise. The calculator compares the net worth you end up with if you buy against the net worth you would have if you rented and invested the deposit, buying costs and monthly savings instead.
How long should I hold before selling for buying to make sense?
The calculator shows the year in which buying overtakes renting on your numbers. Buying has large upfront and selling costs, so if you exit early renting usually comes out ahead, and buying tends to win the longer you hold.
What does the buying side include?
The deposit (or the full price if you pay cash), the Dubai Land Department transfer fee of 4% plus its admin fee, the trustee fee, an optional agency fee, the mortgage registration and bank fees and every monthly payment if you use a mortgage, service charges, and the costs of selling at the end. The value of the home and the mortgage balance at the end are added back.
What does the renting side include?
The rent, growing each year at the rate you enter. The money you would not spend on buying (the deposit or full price, the buying costs, and any monthly saving versus owning) is assumed to earn the yearly return you enter.
Can I trust the result?
It is only as good as the assumptions. Property growth, rent growth and investment return are the biggest drivers, so try a few values. This is a guide, not financial advice.
More tools
All tools →Estimates only, not financial advice. Buying costs use the Dubai Land Department transfer fee of 4% plus AED 580, a trustee fee of AED 4,000 plus VAT, an optional agency fee of 2% plus VAT, and for mortgages a registration fee of 0.25% of the loan plus AED 10 and a bank fee of 1% plus VAT. Selling costs assume 2% plus VAT agency fee, AED 5,000 of fees, and an early settlement fee of 1% of the mortgage left, capped at AED 10,000. Banks, developers and agents charge differently, and rules change, so check the figures for your own deal.
