This article will help you to calculate the mortgage for a property that you going to buy in Abu Dhabi, Dubai and UAE
Abu dhabi constitutes of different sectors like mussafah, icad, khalidiya,al reem island, saadiyat island, al bateen, yas island, hamdan, mbz city, najda street, corniche, al maryah island, nurai island, khalifa street, tourist club area, and even more. The rental charges for different apartments or villas vary according to the floor space and location. Say in mussafah shabiyah , one can find a 2 bedroom apartment for rent with descent floor space at 40,000aed/year, where as when the same apartment with same floor space comes into abu dhabi town , the rate will change to 55,000 to above . So its upto us where we need a an apartment to live in. Usually every one prefer living near the office, it makes much easier for transportation , and less time to travel . There are lot of properties in abu dhabi for sal, you can find easily in web portals like global99.ae with your desired budget. Or if you wish to buy an appartment is will be a better choice if you are living with your family, or if you are living as a bachelor it will be better choice to live in a rented apartment or villa. Buying a property for sale in abu dhabi is not a bad idea, ofcource its a good idea in buying an apartment for sale in abu dhabi, if you calculate the rent you are giving to landlord for 20 years , it will be high when compared to buying an apartment in abu dhabi. Say a 2 bedroom apartment in abu dhabi for sale cost around 650,000 aed (min), it will a one time payment, and mortgage is available from bank . If you take the case of rental charges for 2 bedroom apartment per year the basic one would cost 40,000 aed/year so for 20 years it would cost 80,000 aed which is 1,50,000 aed more than the cost of property for sale. So if you or your family have been residing in Abu dhabi for more than 20 years or going to reside for many years in future it woould be a better idea to buy the property for sale in abu dhabi rather than renting it . For nationals they need to pay around 20% of the total amount of property for sale in abu dhabi, then if needed bank finance is available. For Expartriates they need to pay around 25% of total amount of property for sale , then if needed a bank finance will be available. If a 2 bedroom apartment cost around 650,000 aed an expartriate have to pay 25% as downpayment which equals 162,500 aed ,if you choose the loan duration for 5 years you need to pay 8,710 aed per month for 5 years, or if you choose 25 years you can pay 2254 aed per month for 25 years, its upto you how long the duration should be, it ranges from 5 years to 25 years. So next time if you are looking for an apartment, dont just look to rent it , look forward to buy the apartment.
Estimated monthly payment based on a 1,125,000 AED loan amount with a 3.99% fixed interest rate for the entire duration of the loan is 5,932Aed
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