Total Cost of Ownership
Total cost of ownership includes purchase price plus all acquisition costs, financing expenses, and ongoing operating costs over the holding period.
| Cost Component | Dubai Context |
| Purchase price | Property value |
| Transfer fees | 4% of value |
| Agent commission | 2% + VAT |
| Mortgage costs | Valuation, processing, registration |
| Annual service charges | AED 15 to 30 per sq ft |
| Maintenance and repairs | 1% to 2% of value annually |
| Management fees | 5% to 8% of rent if managed |
| Financing costs | Interest paid over loan term |
| Exit costs | Selling fees when disposing |
| 5-Year Ownership Example | Amount |
| Purchase price | AED 1,500,000 |
| Acquisition costs | AED 100,000 |
| Financing costs (interest) | AED 180,000 |
| Operating expenses | AED 150,000 |
| Exit costs | AED 90,000 |
| Total cost of ownership | AED 2,020,000 |
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