Rent or buy?
The answer is a function of how long you stay — change any figure and watch the crossover move6%of the price, plus the registration fees, to buy
2%of the sale price, to sell
80%the most a bank lends on a first home
25 yrsthe mortgage term it is costed over
Hala's reading
Hala is reading the figures on this page…
Compare your own
Not enteredyour rent, a year
Not enteredthe home you priced
Not yetfollows from your price and rent
Not yetcost of the first 5 years, renting
Enter the price of the home you are weighing and the rent you pay now. Nothing is compared until both are yours — the answer depends on them more than on anything else.
The home
The mortgage
What you expect the market to do
PropDirect does not forecast. Both start at 0% — type what you expect.
An estimate, not advice. Assumes a 25-year mortgage, 6% purchase costs (transfer, agent, registration) and 2% to sell. It does not model the return you would earn investing the deposit instead, or maintenance beyond the service charge — real factors, so treat the break-even as a guide. Change any figure to match your situation.
What the answer rests on
- Buying costs 6% of the price to make: 4% transfer fee and 2% agency, plus AED 4,720 in trustee and registration fees at AED 500,000 or moreDocumented rate
- Selling costs 2% in agencyDocumented rate