Should I Hold This Property, Sell It or Reinvest the Capital?

Method & assumptions

HOLD wealth = projected property equity at your horizon (appreciated value less any reducing-balance mortgage) plus accumulated net property cash flow (interim cash flows reinvested at your alternative return when chosen, keeping the comparison fair). SELL & REINVEST wealth = the net equity released today — sale price less exit broker fee, NOC, additional exit cost, the outstanding mortgage and any settlement cost, clamped so a shortfall is never treated as reinvestment capital — grown at your alternative return. Break-even is expressed as the appreciation, NOI / rent, and alternative return at which the two positions are equal at your horizon (not a break-even year). Outlook indicators are your own qualitative inputs, counted by rule and never fed into the numbers.

• Net equity today = sale price − exit broker fee − NOC − additional exit cost − outstanding mortgage − settlement cost; only its non-negative portion is available to reinvest.
• Appreciation defaults to 10%, rental growth to 5%, alternative return to 5% — all editable assumptions, not forecasts.
• Exit costs are selling costs only (broker 2%, NOC AED 5,000) — this is an exit model with no DLD or mortgage-registration acquisition fee. Mortgage runs on a reducing balance; principal and interest are separated.

Official regulatory basis

Official government & regulatory sources

• Central Bank of the UAEMortgage lending framework — applicable LTV, debt-burden ratio and maximum-tenor regulatory limits where relevant to the model.View CBUAE source
• Dubai Land DepartmentOfficial Dubai property registration, mortgage registration, trustee / service-partner charges, title deed and unified map government fees.View DLD source
• Federal Tax Authority (UAE)Value Added Tax basis: the 5% standard rate applied to commercial property and to taxable fees (e.g. bank processing), and input-tax recovery — recoverable in full where it relates to a taxable supply. Residential leases and second-hand residential sales are treated per FTA rules.View FTA VAT source

Formulas & methodology

• Raj Khaleel Decision Lab methodologyStandard reducing-balance mortgage amortisation, renter opportunity-cost logic, equity modelling and the year-by-year comparison — implemented transparently in this tool.
• Commercial costs are your editable assumptionsBrokerage, bank arrangement, valuation, conveyancing and insurance are not government-set. Enter your actual quote or use the clearly-labelled editable planning assumption — these are not official government charges.