Is Buying a Property cheaper than Renting in Dubai?
The sale prices levelled off during 2014 in Dubai with no significant growth during last year.
On review of the latest rental index there has been an increase in rent in particular to those areas that are on the lower rental and more affordable scale and include Remraam in Dubai land, International City, Dubai Silicon Oasis and Discovery Gardens.
In consideration of the market conditions with rents increasing and sale prices stabilising, t is certainly the time to consider purchasing as an end user rather than renting a property. On review of some statistics you may be renting a studio apartment in Jumeirah Lake Towers and based on AED 65,000 annual rent you would be paying AED 5417 per month.
If you took a mortgage of 75% of purchase price AED 735,000 your monthly payments based on 4.25% APR would be less at AED 4,000.
A one bedroom in Dubai Sports City selling at AED 850,000 would cost you monthly AED 4700 in mortgage payments however to rent the same property you be paying closer to AED 5833.
Of course you have to be able to pay the 25% down payment along with approximate costs of 4% to Dubai Land Department, 0.25% of loan amount for mortgage registration and 2% Agency fees but there are finance options available to assist with these bulk payments.
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