Pros and Cons of Plots on Installments

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.

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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:

  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.

Cons of Installment payment plan:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. Emergencies

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.

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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:

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the 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 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:


Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:


Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:


Faisalabad, formerly known as Lyallpur named after the founder of the city is the third-most-populous city in Pakistan after Karachi and Lahore respectively, and the second-largest in the eastern province of Punjab. Below the list of some of the top Projects in Faisalabad:


Gujranwala is a city and capital of Gujranwala Division located in Punjab, Pakistan. It is also known as “City of Wrestlers” and is quite famous for its food. The city is Pakistan’s 5th most-populous metropolitan area, as well as 5th most populous city proper. Below the list of some of the top Projects in Gujranwala:


Multan is city of Saints, it is best place to live if you belong to either middle class family, rich family or a poor family. The city is now develop city of Pakistan you can get every life facility here easily at low cast. Multan’s foods are very delicious especially mangoes of Multan are world famous. Below the list of some of the top Projects in Multan:


Bahawalpur lies in the heart of South Punjab and is filled with stories that surround the legacies of Kings, Nawabs and their extravagant lifestyles. Below the list of some of the top Projects in Bahawalpur:


Peshawar is the capital of the Khyber Pakhtunkhwa province of Pakistan. It is the biggest city of Khyber Pakhtunkhwa and is a relatively prosperous city. It is also a cultural and economic hub of Khyber Pakhtunkhwa. The city is famous for its food and tourism as it is one of the oldest cities of Pakistan with a recorded history that dates back to 539 BC. Below the list of some of the top Projects in Peshawar:


Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:


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.

Related Cool Links:

Maps of Societies and Projects in Pakistan:

Maps are the only source to view online high resolution 24 hours updated maps of Housing Societies, Schemes, Towns, Villas and Homes in all over Pakistan. Below the list of maps of some of the top Projects in Pakistan:

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