Dubai ownership costs and net rental return

Start with the money you keep

Advertised yield divides rent by the purchase price. It leaves out the costs of buying and running the home. Use three separate numbers: gross yield for a quick comparison, net operating income for the property itself, and cash flow after the mortgage for your household budget.

The calculator below starts with an illustrative apartment. Replace every assumption with your quote, approved service-charge budget and expected rent. These are not typical costs or a forecast.

Check these costs before you offer

Check the approved year and exact building when looking up service charges. Ask which area the charge uses, what it includes, whether cooling is separate, and whether there are outstanding balances or special works. Do not substitute a neighbouring tower's rate.

What each result means

• Gross yield: annual rent divided by purchase price.
• Net operating income: collected rent after vacancy, less service charges, maintenance, insurance and management.
• Net yield: net operating income divided by price plus purchase fees and furnishing.
• Cash flow: net operating income minus the full annual mortgage payments.
• Cash-on-cash return: cash flow divided by your deposit, purchase fees and furnishing cash.

Mortgage principal builds equity but still leaves your bank account. This is why cash flow and profit differ. The tool does not assume a sale price gain, reinvested rent, tax treatment or a future mortgage rate.

Test a bad year

Run the estimate again with a lower rent, a longer vacancy and higher repairs. Then increase the mortgage rate. Keep a cash reserve separate from the purchase deposit. A result that depends on uninterrupted rent or a quick resale needs more work.

For an off-plan purchase, add the dated instalments, delivery uncertainty and period without rent to a separate cash schedule. This calculator models a completed, income-producing home; it does not model a developer payment plan.