Property Details
Annual rent: 140,000
Average 15/sq ft in Dubai.
Dubai avg: 5-8% for prime areas.
5 years
1 yr10 yr
Mortgage Terms
25% ( 500,000)
20%50%
UAE avg: 3.5-5% fixed.
Mortgage wins by 103.6%
Leverage amplifies returns when appreciation exceeds borrowing cost. Your capital works harder with a mortgage.
Cash Purchase
Total Investment 2,085,000
Price + DLD 4% ( 80,000) + Admin ( 5,000)
Net Annual Rent 125,000
Cumulative Rent (5yr) 690,704
Property Value (5yr) 2,552,563
Opportunity Cost 576,047
Total Return 1,243,267
Return on Investment59.6%
Mortgage Purchase
Upfront Cost 589,040
Down 25% + DLD + Admin + Reg 0.25%
Monthly EMI 7,918
Total Interest (5yr) 281,622
Cash-on-Cash Return5.1%
Equity Built 693,431
Total Return 961,645
Return on Investment163.3%
Leverage Multiplier3.5x
Assumptions
- DLD fee: 4% of property price
- Admin/trustee fee: 5,000
- Mortgage registration: 0.25% of loan amount + AED 290
- Rent and appreciation are compounded annually
- This is a simplified model for comparison purposes
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