Installments or Full Payment?

Installments or Full Payment

Know Which Method is Best For You

Pakistani people want to invest their savings in the real estate sector as their funds keep on growing after being invested in this area. But the problem arises when they have to choose the payment method. Either they can choose Installment plan or the full payment at the spot. The decision of choosing between the two is very difficult and confusing for some people. But don’t worry; this blog is a beginner friendly guide that will evaluate the difference between the two payment options to help you make better decisions regarding your property.

Why You Should Choose Full Payment?

Buying a property with full payment requires that you have the entire amount of funds or at a rate higher than 50% of the price of the property you want to have in order to get the advantages of buying in cash. People who have the full funding should always choose this option. Buying in full payment has it’s own benefits.

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Pros of Full payment:

  1. Investment

Real estate is one of the most reliable types of investments in Pakistan. Investors like this source as it is an additional source of income through rent or through the sale of the owned property as the real estate price increase from 4-6% annually (varies by the region and services). By paying full payment can make your ownership fast which leads to the start of income generation soon.

  1. Stability

Immediate delivery is one of the most important advantages of full payment of the property. By paying full payment, you can have stability in many ways which is very much required in this unstable world. Immediate ownership is very great for your family and children and you. People like stability for a place of residence which can be achieved by full payment.

  1. Renovation:

Owning a property gives you the full opportunity to renovate it as you wish. Many people want the ownership as soon as possible only because they want to change the layout of the house or start the construction on the plot as soon as possible.

  1. Discounts:

Buyers are given discounts if they pay on the full payment. Many sellers offer this discount but very few investors know about this option. This is because it is a hidden benefit of paying for a property in full. But the fact remains that most sellers and developers will offer a certain discount on full payments. This means that if you have the funds saved up in your pocket, you can buy the property at a much cheaper rate. Sellers offer these types of discounts as they get immediate payment and don’t have to wait for 3-4 years, like in installment payment. It is a win-win situation for both parties.

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Why You Should Choose Installment Plan for Investing?

Owning a plot or a home is a milestone for the middle class in our country. It is a very rare case that people pay full payment for the property they want to buy. Most people prefer installments due to the low affordability and high inflation. Installments are paid until full payment is done.

This method of payment is used very commonly and is a way of life for business transactions. To understand installment payments better, you need to look at the pros and cons of installment payments.

Pros of Installment Payment Plan:

  1. Suitable method if your payment is not available at once

Paying in installments is the best solution for you if you really want to buy a plot but do not have enough funding for it. Installments plan make it easier to pay small payments in different continuous time periods. Buyers can achieve their dream property with installments payment in the agreed period in proportion to their budget and capacities.

  1. Budget-friendly Method

Paying installments for plots make helps you budget better. This is one of the great things about paying for plots in installments. Paying for your plots in installment helps you divide up the amount into many small payments over time. This way, you do not have to worry about a big payment.

Installments for plots also make it easier to maintain the same level of living standards buyers were having before.

Other areas of life that need funding will not suffer in this way. Most people buy an automobile after being a plot owner. The payment for this automobile is only possible if less is spent on the plot or is planned on installments. Otherwise, it becomes very difficult for the buyers or investors to pay for both properties.

  1. Better Money management

One of the many benefits of paying the seller in installments is that you get to manage your finances better. Buyers can then easily purchase plots without needing more savings. Even if you have savings for any other item, you should not use that money here. This is because using the funds that you have saved for a long time for something else; it would be difficult to put those funds back for the original purpose.

Many people prefer installments, as they can invest the extra money in short-term savings. They can easily earn profit from there and they can manage their funds better.

Conclusion:

The idea is to make sure that buyers are able to balance the two and that you make the most out of these different payment methods. In the conclusion, the decision about the choice between the two methods is to know your budget first. If you have full payment saved up with you or you have 70% of the payment to buy real estate then you should definitely go for the full payment method. Installment payment should be chosen when the funding is low to buy real estate, only down payment is saved up. People choose this method as it is more convenient for them to pay in small payments rather than paying as a whole. In short, the decision rests on whether you have the funds for full payment or not.

For any consultation, buying or selling your real estate property, contact Pakistan Property Services. We provide you better consultations for your real estate matters. For further information, visit our YouTube channel.

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