The decision to buy a home in Islamabad/Rawalpindi and the question: should one employ their entire life savings to avoid landing in debt, or consider other forms of financing, come hand in hand.

There is no hard and fast rule as to which one is better; cash and mortgage both have their benefits and implications. Amassing money happens to be off-chance for those belonging to the low-income group as they continue to struggle with the rising costs of living. Consequently, most home shoppers in Islamabad/Rawalpindi end up borrowing money from lenders. It indeed is a long-term financial commitment yet at the same time, the only option for many to enter the market.

Unfolded below are some considerations that streamline the best financing options with reference to the unique financial situation of different home buyers in Islamabad/Rawalpindi real estate market.

Purpose of buying

Establishing the purpose of purchase is essential to move forward — buying to let, live in, or to sell in a short time. Other elements such as one’s type of employment, age and domestic circumstances also must be factored into the final decision. Each option has different determinants; for instance, pledging all of your money in an income-generating asset has no harm. Mortgage, on the other hand, is a better fit for young buyers who are investing in a property to live in, as they can get a longer mortgage tenure while maintaining liquidity.

Cash

An all-cash payment saves the buyer from accumulating debt, paying interest, extended repayment schedule, not to mention the negotiating power that comes with an upfront cash purchase.

The buyer can also save on additional costs and time involved in the paperwork that comes with a mortgaged property. Applying and qualifying for a mortgage in itself is a hefty task. Furthermore, Islamabad/Rawalpindi properties financed through cash are easy to sell.

Mortgage

Some of the industry experts claim that a mortgaged property may even pay for itself, if the calculations are apt.  Moreover, it is an ideal option for those looking to maintain comfortable cash flow and flexibility for investing in other assets or for wealth creation.  In Pakistan few banks including MCB are offering Home Mortgage Loans.

Key takeaways

• Cash is precious.
• Time snatches buying power from cash.
• Property is a lifelong investment. It provides rent if you don’t live in it and saves rent if you do.
• Time adds value to every property.
• Leveraging can prove to be beneficial as it helps in using money to its maximum advantage.
• Buying an asset and paying for it in the future using a currency which devalues is a good idea.
• It is essential to choose the right property and the right mortgage. This may result in the property paying in for itself.

Islamabad/Rawalpindi’s real estate market is seeing a huge surge in 2021-22. It is an astounding opportunity to Buy Property in Islamabad/Rawalpindi. There are huge loads of spots that can make your life astounding. From Park View City to Tulip Apartments, the waterfront properties are the ideal objective for you. From a serene walk around the forest to a dip in a pool, we at Beluxé can help you track down the ideal spot for you.