Should you buy or rent? new online tool will help you decide on buying or renting a home in Dubai/UAE by comparing the total cost of renting with the total cost of buying a property in Dubai/UAE.
Propertyfinder’s new Rent vs Buy calculator takes the most important costs associated with buying a property and compares it to a property seeker’s equivalent monthly rent.
As property prices have come down, homeownership is within reach for more of the population. Arming them with the tools to empower their decision making is a first step in the journey.
For property seekers in Dubai, it can be difficult to find a one-stop shop for a mortgage and financial answers to understand whether or not it’s a good decision to buy a property based on current circumstances.
Even a basic question like, “Should I renew my rent or is it time to buy?” Most consumers would be surprised to learn that, over time, a monthly mortgage payment could be much less than what they pay in rent.
Introducing Propertyfinder’s Rent vs Buy Calculator. Lynnette Abad, Director of Research and Data at Propertyfinder Group, says the new free tool was aligned with her own frustration with the home-buying process.
“I wanted to see a breakdown and analysis of costs to know how much I would save in the long run if I were to buy, and my bank couldn’t provide me this,’’ says Abad. “Being in the industry, I was able to work out the analysis myself, but a consumer would struggle to get all of this information and do the math.”
This is how Rent vs Buy was born – a simple tool where anyone can enter their own numbers based on their current circumstances, like how much they pay in rent; the price of a property they are interested in; and the number of years they plan on living in Dubai. The calculator will then give the estimated cost breakdown and analysis, demonstrating the breakpoint where buying becomes more affordable than renting.
Rent vs Buy Methodology
So how does it work? Propertyfinder’s new Rent vs Buy calculator compares the total cost of renting with the total cost of buying by looking at much more than just a monthly rent or mortgage payment.
To calculate the cost of renting, the tool begins with the monthly rent and includes additional rental costs such as the one-time agent commission (based on the total yearly rent amount) and yearly EJARI fees. This calculation does not include any maintenance fees you may incur as a tenant.
To calculate the cost of buying, the tool begins with the purchase price and calculates the initial down payment and various fees involved; the monthly mortgage payment, agent commission, Dubai Land Department registration fees, Registration Trustee fees, property valuation fee, mortgage processing, and registration fees. These costs are predefined and do not include service fees, home maintenance fees or utility fees. This calculator provides baseline assumptions based on your input.
Put your own figures into our easy-to-use tool and watch it analyze your details. You might be surprised to learn that, over a few years, a monthly mortgage payment would be much less than what you pay in rent each month.