The popularity of paying in installments has seen acceleration in the last few decades. Most people still associate installment purchases with their ease of buying a property. This is one of the reasons why people prefer installment payment over full payment at the spot. The installment payment for buying property has become a normal and a common method for a lot of investors and soon-to-be residents too. Banks also provide loans on such design that the debtor can purchase their properties with installment plans. Buyers can then easily pay a down payment and pay the rest in installments overtime periods. The idea is that lenders and creditors earn from even the low amounts of payment and economic activities keep on happening.
Installments are preferred for mortgage loans. Real Estate property ownership happens to be one of the top goals for not only Pakistanis but for people all around the world. 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:
- 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.
- 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.
- 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.
Cons of Installment payment plan:
- A period of money instability
Many buyers do not have the required funds for each installment, buyers feel very anxious as they have the stress of paying after every month and have no relaxation. The buyer needs to have the proper amount of payment to fund the installments too.
- Interest Rate
In some cases, an interest is added to the real original price of the plot. Each installment is based upon principle and interest. This is considered the extra funds people need to pay for their plot.
- Missed opportunities
The seller may resort to choosing the installment system as he knows that people can’t afford the full payment. So the seller chooses the installment payment plan so that his plot gets sold. This happens mostly when there is any defect in terms of plot surroundings etc. So the Buyer needs to be careful.
- Missed Installment
If the buyer misses any installment due to any reason, a fine is applied due to the missed payment. This is an additional payment which the buyer has to bear due to the lateness in payment of the original installment. The sellers do not want that the buyer to stop the payment and ask for a refund of already paid installments. So they try to give them relaxation that the buyers can restore the installment and give them different options.
- Delay in development:
Sometimes, there is a delay in the project due to a lack of payment of installments by the buyers or by neglectfulness of the developers. This kind of situation needs to be avoided by both parties for a peaceful contract.
- Fee for late payments:
There are certain fees and penalties that come with installment payments, especially if the payment is not done on the due date of payment. There are many reasons for the late payments but Buyers are given no further relaxations. Buyers are then caught off-guard after receive your statement with a huge amount you have to pay.
The plan needs to be followed as per plan otherwise it will become difficult for the buyers. The budget of the buyer is disturbed to a great in this extent.
Emergency situations need savings individually. Buyers are already paying the installments every month. If they encounter any emergency, it would be quite difficult for them to pay for both. One Payment needs to be left out in this situation. We don’t know when we need to pay for an emergency and to have a reserve fund for such situations.
The idea is to make sure that buyers are able to balance the two and that you make the most out of this payment method. In the end, the installment payment should strengthen your finances and not add in debt.
Projects We Deal In:
- Bahria Town Lahore
- Bahria Orchard Lahore
- Bahria Nasheman Lahore
- Bahria EMC (Bahria Education and Medical City)
- Bahria Town Karachi
- Bahria Homes
- Bahria Paradise,
- Bahria Paradise Villas
- Iqbal Villas
- Quaid Villas
- Liberty Commercial
- Bahria Sports City
- Bahria Sports Villas different precincts
- Bahria Farm Houses
- Bahria Golf City
- Bahria Heights
- Bahria Apartments
- DHA in all cities of Pakistan
Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the most better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.
Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:
- Bahria Town Lahore – Your Luxury Lifestyle Destination!
- Bahria Town Lahore Sector A
- Bahria Town Lahore Sector B
- Bahria Town Lahore Sector C
- Bahria Town Lahore Sector D
- Bahria Town Lahore Sector E
- Bahria Orchard Lahore – Your Luxury Lifestyle Destination!
- Bahria Orchard Phase 4 Lahore – A Detailed Overview of Bahria Orchard Phase 4
- Bahria Orchard Phase 4 Lahore – Location and Monthly Plots Prices Analysis
- Bahria Nasheman Lahore – Your Luxury Lifestyle Destination!
- Bahria EMC Lahore (Bahria Education and Medical City)
- Times Square Mall & Residencia
- Lahore Smart City (LDA Approved Project)
- Union Luxury Apartments Lahore or Union Heights Lahore in Etihad Town Lahore
- Cosmetic Planet in Times Square Mall & Residencia
- Al-Rehmat Project by Bahria Town Lahore
- Jasmine Avenue Homes Lahore
- Marina Apartments Lahore
- Shadman Enclave Housing Scheme Lahore
- The Gold Souq in Bahria Town Lahore
- Blue Town Phase 1 Sapphire Lahore
- Top Best Residential Housing Societies in Lahore
- Name List Housing Societies on Raiwind Road Lahore
- List Housing Societies on Raiwind Road Lahore
- Icon Valley Lahore
- Pearl One Tower Bahria Town Lahore
- Best Housing Societies on Sharaqpur Road Lahore
- Best Commercial Projects with Easy Installment Plan in Bahria Town Lahore
- Dream Housing Society Lahore
- Low Cost 8 Marla Plots in Bahria Orchard Lahore
- Lahore Fortress Apartment Homes
- Al Kabir Town Lahore
- Golf View Residencia
- Overseas Block of Park View City Lahore
- IT Market in Orchard Mall Lahore
- IT HuB in Bahria Town Lahore – Jasmine Grand Mall
- SA Gardens Lahore
- Kings Town Lahore
- Citi Housing Multan Phase 1
- IT Hub in Jasmine Grand Mall Vs IT Market in Orchard Mall Lahore
- Wedding Galleria Jasmine Grand Mall
- Talha Block Commercials in Bahria Town Lahore
- Tauheed Heights Bahria Town Lahore
- Central Park Housing Scheme Lahore
Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:
- Bahria Town Karachi – Overview of Commercial Projects
- Precinct 32 in Bahria Town Karachi
- Precinct 15 in Bahria Town Karachi
- Villas in Bahria Town Karachi
- Bin Abdullah Trade Center in Bahria Town Karachi
- Square One Mall Bahria Town Karachi
- Commercial Projects of Bahria Town
- Athar Aman Castle Bahria Town Karachi
- Precinct 30 Bahria Town Karachi
- SQ 5th Avenue Karachi
- AQ Bazaar by Bahria Town Karachi
- P-10 Villas By Bahria Town Karachi
- SQ 09 Towers in Bahria Town Karachi
- SQ Cloth Market in Bahria Town Karachi
- SQ 29 Jinnah Avenue in Bahria Town Karachi
- Commercial Properties of Ali Block Precinct 12 Bahria Town Karachi
- Dominion Mall in Bahria Town Karachi
- Abul Qasim Mall and Residency
- Descon Towers Bahria Town Karachi
- Aliyan Regency Luxury Penthouse Bahria Town Karachi
- Precinct-11 A Villas By Bahria Town Karachi
- Bahria Farm Houses Karachi by Bahria Town Karachi
- Best Precincts for 125 Sq. Yards in Bahria Town Karachi
- Bahria Paradise Villas
- Bahria Golf City Karachi
- Sports City Villas Bahria Town Karachi
- Best Options of 250 Sq. Yd Properties in Bahria Town Karachi
- Central Park Apartments Bahria Town Karachi
- Liberty Commercial Bahria Town Karachi
- What are the Main Reasons of Increase in Prices in Bahria Town Karachi?
- SQ Cloth Market 2 in Bahria Town Karachi
- Precinct 25 Bahria Town Karachi
- Precinct 17 Bahria Town Karachi – Best Precinct for 500 sq. yard plots
We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.
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- Installments or Full Payment?
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- A Guide to Transfer Procedure of Property in Bahria Town
- Possession Charges And Utilities Charges of Bahria Town Lahore
- Best Commercial Projects with Easy Installment Plan in Bahria Town Lahore
- Is This The Right Time To Invest In Property?
- Pakistan Real Estate Forecast 2021 – All You Need to Know