Investor workspace

Rent vs Buy Calculator

Compare cash cost, mortgage amortization, ownership costs, equity, and your expected stay in one transparent scenario.

Your scenario

Start with four inputs. Open assumptions only when you want to refine the model.

Purchase price

AED

Current annual rent

AED

Down payment

Expected stay

years

Mortgage & cost assumptions

Fixed mortgage period

years

Fixed rate

Reversion rate

Loan term

years

Purchase costs

Annual owner costs

Selling costs

Alternative cash return

Annual rent growth

Annual home growth

This is a planning model, not a mortgage quote or forecast. Replace every assumption with your actual fees, rate, building costs, and expected sale terms.

Modeled result at 5 years

Buy has the lower modeled net cost

Difference: AED 217K across the selected horizon.

Buy crosses rent in year 2

Monthly rent now

AED 8K

Initial mortgage

AED 5K

Cash needed

AED 324K

Equity after sale costs

AED 518K

Cumulative net cost

Lower is better. Buy includes purchase, finance, owner, opportunity and selling costs, less sale value.

Guided by market data

Review this scenario against a real property and mortgage offer

An advisor can replace generic assumptions with the unit's fees, service charge, payment plan, and finance terms.

Review this scenario

Cost breakdown

Modeled over 5 years.

ItemUpfront cash

Rent—

BuyAED 324K

ItemRent / mortgage paid

RentAED 478K

BuyAED 324K

ItemOwner costs

Rent—

BuyAED 60K

ItemOpportunity cost

Rent—

BuyAED 70K

ItemSelling costs

Rent—

BuyAED 28K

ItemRemaining loan

Rent—

BuyAED 846K

ItemFuture home value

Rent—

Buy− AED 1.39M

ItemNet cost

RentAED 478K

BuyAED 260K

Item	Rent	Buy
Upfront cash	—	AED 324K
Rent / mortgage paid	AED 478K	AED 324K
Owner costs	—	AED 60K
Opportunity cost	—	AED 70K
Selling costs	—	AED 28K
Remaining loan	—	AED 846K
Future home value	—	− AED 1.39M
Net cost	AED 478K	AED 260K

How the model works

Mortgage balance is amortized month by month; it is not estimated with a fixed percentage.
The reversion rate starts after the fixed period and recalculates payment on the remaining balance.
Buying includes purchase, owner, opportunity, selling and finance costs, then credits the modeled sale value.

Read research methodology →

Common questions

Does the result predict property appreciation?

No. Home growth is your editable assumption, not a PropertyStellar forecast.

Are service charges included?

Use Annual owner costs to include service charge, maintenance, insurance, and other recurring ownership costs.

Why include an alternative return?

Cash used for down payment and purchase fees could have earned a return elsewhere, so the model shows that opportunity cost separately.