|Here is an example of how it works. The calculator will ask you to enter the following details:
|Target monthly rent
|Target home price
|Period of residence
The calculator will calculate the following for you:
In case of rent:
- Agent fee (5% of the annual rent paid once)
- Total renting cost (Yearly Rent x Tenure + Agent Fees)
So, if the rent is calculated according to the example budget mentioned above then the total renting cost will be AED 217,800.
In case of purchase:
- Agent fee( 2% of Home Price)
- Land Department fee (4% of Home Price)
- Mortgage valuation fee ( In UAE, this amount is fixed at AED 3,000)
- Mortgage processing fee (1% of Principal Amount)
- Knowledge fee (AED 10)
- Total fee (Agent fee + Land Department fee + mortgage valuation fee + mortgage processing fee + knowledge fee)
If the buying price is calculated as per the above example then the monthly mortgage fee will be AED 5,261 and the monthly total cost will be AED 6,261.
Following the example, ezEstate's Rent vs. Buy Calculator shows that there is a difference of AED 3,236 in the rent and purchase cost. It shows that renting the property will prove to be 50% cheaper for you as compared to buying it. This would help you make a more informed decision about your property rent or purchase.
Note: The difference and result will vary according to your budget.