Rental costs are the key reason to buy in Dubai

Soaring rental costs this year have encouraged more expatriates to buy in Dubai. With the total cost of buying a house on a mortgage now lower than renting, is this a compelling argument? It depends on how long you intend to stay and what happens to the local real estate market. Let us take a concrete example here, and homes in the Meadows are made of the stuff.

Say you buy a typical five-bed villa for $700,000 and take-up an 80% interest-only mortgage at 6% over 15 years, this gives you a monthly mortgage repayment of roughly $2,500, plus you will have $165 in service charge and municipal tax of around $160, making a total of $2,825. Read More..