Renting and Buying - Financial Comparison

BetterHomes RENT VS BUY A Financial Comparison- Here's how buying an average two bedroom apartment worth 1.5 million AED and renting an average two bedroom apartment in Dubai compare. The results may surprise you. You've got the keys, now here's what you need to spend 375,000 AED Deposit 120,000 AED p/a Payment 71,000 AED p/a Re-payment And here's what happens over time Potential 1,1 million 6. in 720,000 AED AED Years LOSS GAIN Using a mortgage with a 4% interest rate on a property that appreciates at an average of 5% per year, you can see how your equity grows with both capital gains and a decreasing mortgage. 25% DEPOSIT AED 375,000 PROPERTY PRICE 75% MORTGAGE AED 1,500,000 AED 1,125,000 2.0 - AED 600,000 Increase in Equity 1.5 Equity at Start AED 150,000 Decrease in Debt 1.0 Year 1 Year 2 Year 4 Year 6 Property Value, AED O 1,500,000 o 1,600,000 o 1,840,000 O 2,100,000 Buyer's Equity, AED 407,000 535,000 894,000 1,157,000 Mortgage, AED O 1,093,000 0 1,065,000 O 1,006,000 O 943,000 Monthly Repayment 5,911 5,911 5,911 5,911 If Dubai is set to be your home for even a few years, it may make sense to invest in your own property. We're here to help you find the perfect home at the right price, so give us a call now. +971 600 52 2212 www.bhomes.com Disclaimer Calculations are based on current averages which may vary according to market conditions. Individuals are advised to check current interest rates with their mortgage broker or lender. BetterHomes -- ---- Property Value. millions AED