Benefits of Opting Installment Plan for Buying Properties
If you are thinking to buy property, you may came across 2 plans. First one is lump sum payment. Secondly, go for installments plan. Both of these have its own benefits. However, many investors go for installment plan. Before going further into discussing its benefits, let’s discuss what is the meaning of installment Plan.
What is Installment Plan?
In Pakistan, the rate of Real Estate is quite high. You need a lot of finances for investing in it. However, keeping in view the financial resources of the average Pakistani, the developers usually comes up with Installment Plan options. In this plan, the whole amount is divided into installments either monthly or quarterly installments. You just have to pay certain amount as down payment and confirmation. It varies from 10% to 30% of the total payment.
Benefits of Installment Plan
There are many benefits of choosing this plan. Moreover, out of 10, 7 people invest in real estate with an easy installment plan. Let’s have a look that why you should choose installment plan over full payment.
As said earlier, cost of the property is quite high. Further, many people do not have the finances to pay huge amount all at once. It is not easy on the pocket as well. Thus, in this regard installment helps individuals to invest. It is easy for them to take out certain amount of cash from their monthly expenditures.
Accommodation needed immediately
Sometimes you are in dire need of accommodation & you don’t have enough resources. In this case, these installment plans are an ideal solution. If you lack enough amount at the time, installment plan will be the perfect solution if you need to find accommodation for yourself & your family on an urgent basis.
Moving in to new house is crucial for number of reason including relocation for job, better lifestyle.
Read Also: Buying a Plot: Things to consider before real estate investment
Piggy Bank for Savings
Putting all of the eggs in one basket is not recommended by expert investors. Investing all the money in a single project is never a good option. Thus, in this way, you can invest your savings in a number of projects as you have to pay a small amount in this plan. Diversifying portfolio is also an obsession of many people.
Since many of us have arranged monthly budget with respect to income. Installments allow you to budget your expenditures better with good outcome over time. On the other, you may not be able to save enough to buy property all at once. This will enable you to become the proud owner of your home in just a few years.