1. What is the Buy vs Rent Breakeven Calculation?

The breakeven analysis helps determine when buying a property becomes financially advantageous compared to renting in Dubai's real estate market. It calculates the annual cost difference between owning and renting.

2. How Does the Calculator Work?

The calculator uses the breakeven formula:

Where:

• Purchase Price — Total property cost in AED
• Closing Costs — Dubai property registration fees and other acquisition costs
• Rent Savings — Annual rent amount you would otherwise pay
• Years — Timeframe for comparison

Explanation: The equation shows the annualized cost of ownership after accounting for what you would have spent on rent.

3. Importance of Breakeven Analysis

Details: Understanding your breakeven point helps make informed decisions about Dubai real estate investments and personal housing choices.

4. Using the Calculator

Tips: Enter all values in AED. For accurate results, include all purchase costs (4% DLD fee, agent fees, etc.) and your actual annual rent.

5. Frequently Asked Questions (FAQ)

Q1: What's a good breakeven point in Dubai?
A: Typically under 5-7 years is considered favorable for buying in Dubai's market conditions.

Q2: Should I include maintenance costs?
A: Yes, for precise calculation, add estimated annual maintenance (1-2% of property value) to closing costs.

Q3: How does Dubai's rental yield affect this?
A: Higher rental yields (5-7% in Dubai) generally favor buying over renting long-term.

Q4: What about property appreciation?
A: This basic model doesn't account for appreciation. Positive appreciation would improve the buy scenario.

Q5: Are there special considerations for off-plan?
A: For off-plan purchases, include service charges and potential rental income during construction period.