Despite experiencing inflation and economic unrest, the real estate industry in Pakistan is experiencing a boom. Following the trend, Islamabad real estate sector is also contributing to Pakistan’s real estate industry growth with a notable proportion.
Where many people get stuck in deciding whether to buy a home or rent. Below, you’ll find a few factors that might help you answer the question of renting vs buying.
Higher Resale Value
The prices of houses are escalating quickly because the real estate industry is growing stronger around the world. Everyone needs a place to rest their head and thus, owning a home give you a sense of security. Owning a home, you’ll never have a fear of being evicted.
While it may be expensive to purchase a home, but a higher resale value will give the owner a good income in the long run. For us, purchasing a home wins this round of renting vs buying a living space.
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Renting Vs Buying: A Secure Future
Perhaps one of the biggest drawbacks of renting vs buying is that renting I only feasible until a person is earning. They cannot pay the rent if they aren’t making a decent income. Buying a house means having insurance for the future.
If you invest in purchasing a home, you’ll have a place to retire to. And if the going gets tough, you can always sell your home, getting high ROIs.
The easy payment plans for buying a house has made it easy for people to own them. The housing societies in Islamabad on installments offer great payment plans. For example, Blue World City has 4 years of easy installment plans comprising 40 monthly installments with only a 10% down payment. People who don’t own a house do not benefit from these points. This is an important factor while considering renting vs buying a home.
A Stable Source of Income
Buying a house in Pakistan means an additional source of income. Leasing out the house or renting it out can bring home income for the owners. Moreover, a house is an asset that can be sold whenever needed, and the cash in hand can be used to fulfill the requirements.
Instead, when you live on rent you just keep on paying the price for living in the house, but you cannot have a stake in its ownership. Invest in Islamabad real estate to have a source of income.
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Doll Up the House
When you have your own house, you can decorate it and place things around according to your own choice. You can paint the walls of your choice; buy the decoration items and furniture and plant whatever flowers you like. Living in a home that matches your aesthetic is a big deal for some people and for that, they might feel like a home wins this renting vs buying debate.
However, when you live in a rented house you cannot make changes in the house without the owner’s permission and if you do so, you will have to face heavy fines.
No Maintenance Cost
Now, living on rent, a person doesn’t have to worry about maintenance costs or repair bills. He only will have to face the fixed monthly rents. These rents do increase but gradually, and a notice is issued to the tenants before increasing them.
Similarly, the tenant does not have to worry about the diminishing resale value of their house. Looks like renting is a better option in this aspect. If you want to argue for renting, in this renting vs buying debate, this will drive your point home.
Saving on Real Estate Taxes
Tenants pay rent or utility bills and while that may seem like an annoying expense to incur every month, tenants are exempt from paying real estate taxes. In comparison, homeowners have to pay insurance and corporate taxes.
Tenants only sign the rental agreement. They do not have to indulge in complicated paperwork of buying a house or transferring a house.
Concluding, owning a house or paying rent to the owners has its pros and cons. But still, it is dependent on the lifestyle and financial conditions of a household. And as well on if the people are still employed or are retired.