When OFF, we only compare the actual cash you'd pay. When ON, we also credit the property's expected price growth — this is the value you'd capture if/when you sell.
Buying is slightly cheaper
On this property over 5 years, buying saves you AED 27,402 per year vs renting.
Cash Cost of Owning
6.44%
AED 115,875 / year
Rental Yield (Same Property)
7.96%
AED 143,277 / year
Annual Saving from Buying
+AED 27,402
vs renting the same property
Annual Cost: Owning vs Renting
Initial Investment
Cash you pay on day 1
- Down Payment(20% of price)AED 360,000
- DLD Transfer Fee(4%)AED 72,000
- Agency Fee(2.1%)AED 37,800
- Bank Arrangement Fee(1% of loan)AED 14,400
- Other FeesMortgage registration + valuation + trustee + title deed + first-year insuranceAED 13,080
TOTALAED 497,280
Year-by-Year Breakdown
| Year | Property Value | Mortgage Interest | Other Costs | Annual Rent | Annual Saving | Cumulative Saving |
|---|---|---|---|---|---|---|
| 0 | AED 1,800,000 | AED 0 | AED 0 | AED 0 | AED 0 | −AED 137,280 |
| 1 | AED 1,881,000 | AED 57,600 | AED 52,635 | AED 132,000 | +AED 21,765 | −AED 115,515 |
| 2 | AED 1,965,645 | AED 57,600 | AED 53,434 | AED 137,412 | +AED 26,378 | −AED 89,138 |
| 3 | AED 2,054,099 | AED 57,600 | AED 54,262 | AED 143,046 | +AED 31,184 | −AED 57,954 |
| 4 | AED 2,146,533 | AED 67,986 | AED 54,691 | AED 148,911 | +AED 26,233 | −AED 31,720 |
| 5 | AED 2,243,127 | AED 67,986 | AED 55,579 | AED 155,016 | +AED 31,451 | −AED 269 |