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Your Rent Pays Someone Else's Mortgage. What If It Paid Yours?

Writer: Tavleen Kaur
Tavleen Kaur
Jun 3
2 min read

Every month, thousands of residents across Abu Dhabi transfer money to their landlords.


For a 2 Bedroom in Reem Island, the average rent is 120,000 AED, i.e., 10,000 AED a month, an expense that can never be recovered.


The Hidden Cost of Renting


Let's assume your annual rent is AED 120,000.

Over 10 years, that's AED 1.2 million paid out.

Of course, rents will likely increase during that period, making the actual figure even higher. At the end of those 10 years, your landlord owns the property.

You funded a portion of their investment journey. Not yours.

Now imagine using that same monthly payment towards a mortgage.



The Power of Owning in Abu Dhabi


Let's say you purchase a property worth AED 2 million.

Instead of paying the full amount in cash, you put down 20% (AED 400,000) and finance the rest through a mortgage.

The rental income will offset EMI and service charges.

Instead of paying rent, you're gradually acquiring an asset, while also enjoying other benefits such as the opportunity to qualify for a Golden Visa.

Think about it.

You own a property with just a 20% down payment, and over time, the asset starts paying for itself.

That's the power of leverage.

Now imagine the property's value rises by 10%. A AED 2 million property gains AED 200,000 in value.

Abu Dhabi apartment prices increased by 19% last year, according to ADREC data.

That's how real estate builds wealth.

The reality is simple: Property prices may look expensive today. But five years from now, today's prices may seem like a bargain. 


But What If I Plan to Leave the UAE?


Another common concern.

The beauty of Abu Dhabi's market today is that ownership does not require you to live in the property forever.

You can rent it out, generate income, and also benefit from capital appreciation. 

Or you can choose to sell later whenever you want the capital back.



This decision is worth consideration!


If you're already paying substantial rent in Abu Dhabi, it may be worth exploring whether that same monthly commitment could be helping you build an asset instead.

If you have AED 400,000 in savings, contact me today.

I'll guide you through the entire process—from securing a mortgage to selecting the right property for your goals.

Instead of paying rent every month, you could be converting that payment into an EMI and becoming a proud owner of an Abu Dhabi property.

I handle the entire journey for you, making the process simple and stress-free.


Comment "INVEST" below, and let's explore your options. 🚀🏡

Be wise. Invest in Real Estate!


-Tavleen



 
 
 

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