Rent Vs Buy Calculator

Our Rent vs. Buy calculator is designed to offer a comprehensive comparison between the total costs of renting and buying a property. It's important to note that this tool is most effective when comparing properties of the same standard, such as a 1-bedroom apartment to another 1-bedroom apartment, not a 1-bedroom apartment to a villa. The calculations are based on the property market in Dubai and include all mandatory fees.

For the renting scenario, we base our calculations on several key factors. This includes the monthly rent, the agent's commission, which is a one-off fee based on the total annual rent, and the yearly EJARI fees. The calculator does not account for potential maintenance fees incurred by the tenant.
On the other hand, the buying scenario encompasses a wider range of factors. This starts with the purchase price and the initial down payment. It then includes various costs such as the monthly mortgage payment, agent's commission, Dubai Land Department registration fees, Registration Trustee fees, property valuation fee, and mortgage processing and registration fees. These costs are defined by default and do not account for service fees, home maintenance, or utility fees.

The interest rate is the cost of borrowing the principal loan amount. It can be variable or fixed. A fixed interest rate means the rate remains unchanged through the selected fixed term period. Post-fixed term period your mortgage will revert to a variable rate, known as a reversion rate. A variable interest rate fluctuates over the loan period based on market conditions. Your choice between the two will depend on market predictions and your risk tolerance.

The principal amount refers to the initial size of the loan. It is the amount of money that you initially borrow and must repay. Over time, as you pay down your mortgage, the principal amount decreases.

Community service costs are common in Dubai, and can cover things such as the maintenance and upkeep of common areas in a residential community, such as landscaping, security, and shared facilities like gyms and swimming pools. They are usually calculated based on the size of your property and are a regular expense for homeowners. For the purpose of the calculation we have applied an average across Dubai.