How much you can borrow and where you can buy property depends largely on what you earn. We’ve done the maths and put together a collection of properties that you could own based on your monthly salary.
First, the maths explained
Our calculations are based on the following variables; an average mortgage interest rate of 4%; the average length of a mortgage of 20 years; and the average spend for your mortgage (recommended to be 20% of your salary).
It’s important to note a few points:
- Most banks won’t qualify you for a mortgage unless you earn at least AED 15,000 per month.
- The interest on your mortgage is top heavy, meaning you’ll pay off more of the interest than the principal in your early payments. So, when it comes to your repayments, the interest will be higher on your initial payments and then decline with each payment you make over time.
- There is a minimum 25% down payment (deposit) required to purchase property and other fees will also apply (see below). Our calculations are considering that you have that amount saved up.
Fees to buy property in Dubai
- Land Department Fee: 4% of property value plus a AED 580 admin fee
- Registration Fee: AED 2,000 for properties below AED 500,000 plus VAT and AED 4,000 for properties above AED 500,000 plus VAT
- Mortgage Registration: 0.25% of the loan amount plus a AED 290 fee
- Valuation: AED 2,500 – AED 3,500 plus VAT
You can use our Mortgage Calculator to get the final costs on your chosen property.
The Fun Bit – choosing an affordable property
We found some wonderful listings on Property Finder, took the average stats for a mortgage and figured out what salary you’d need to be earning to own a home like this.
For this AED 500,000 brand new large studio located in the modern and sleek complex of Damac Hills, you’ll need a minimum salary of AED15,000.
If you like the sound of Damac Hills as an area, check out our Community Guides for insider info of what it’s like to live in this area.
This AED 1,000,000 refurbished 1-bedroom apartment in the coveted Dubai Marina will mean you need to earn at least AED 25,000.
Want to know more about the Marina? Our Community Guides have got you covered. See what it’s actually like to live in the Marina.
For this swanky Downtown apartment with a lake view costing AED 2,500,000, you’ll need to bring in at least AED 57,000.
Like what you see? Our Community Guides will give you a resident’s point of view on living in Downtown.
An infamous Palm property of AED 3,500,000 would put your earnings at AED 80,000 plus.
Can you imagine yourself living on the Palm? Watch our Community Guides video to find out more.