Buying Property Through Loan Or Mortgage – Understanding Property Finance

Understanding property finance, real estate Pakistan and buying property in Pakistan
Courtesy: PropTiger

Real estate has always been the most secure and one of the high rewarding form of investments. Whether you need a property for business, to live or to invest money in; the need for the land has always been there. The most rewarding experience for an entrepreneur or a house owner is to be able to exercise his exclusive power of authority on the property. Buying property in Pakistan can be an easy feat, if you know the processes involved!

Understanding property finance, real estate Pakistan and buying property in Pakistan
Courtesy: Wavecity

In case of a business, owning the office or factory land is much more than just being iconic but it acts as a launchpad for the entrepreneur to further capitalize on. This is of greater significance for small and medium enterprises which due to lack of finances move towards leases. Other option in this case is to go for tenancy. This option again does not give full ownership of the land thus limiting the ownership and authority of the business. Even for commercial purposes, buying property in Pakistan through real estate is the ideal approach to go forward!

Low On Cash? Consider Mortgage!

In most cases, falling short of cash to purchase the property is common. Thankfully there are now various ways for compensating the short amount.  Getting a loan or mortgage to buy the land is one of the most common one.  A major benefit of buying property in Pakistan using property finance is ultimately an increase in the company’s fixed assets that puts it in a stronger position. This has such a positive impact on the company that it does not view the loan payments of the land as an expense due to the growing equity. This is mainly because with the passage of time the land’s value appreciates and as a result the return on the investment ratio increase more than the amount of the loan payments.

Advantages Of Buying Property In Pakistan By Mortgage

The advantage here is that the increasing equity can unleash great opportunities for future capital injection into the operating entity.  In short the benefit for all of this scenario is twofold. One contributing towards growing business while the second results in increase in the fixed assets.

Understanding property finance, real estate Pakistan and buying property in Pakistan
Courtesy: 1st Premier International Properties

When a property is bought on loan basis there are few advantages to the buying party. The major ones include different tax benefits that the purchaser gets be it be land for business or home. Mortgage and loan payment are tax deductible this contributes to lower the company’s or individual’s income and ultimately low income tax is due. The overall interest rates are lower than in any other form of financing especially in case of commercial property.

Commercial mortgage plans are usually of several years which allows the business to concentrate more on the core business and sales. If your mortgage is for commercial property, and you or your business reaches a point where it can no longer afford the monthly payments, you can end the mortgage and still have plenty of options to choose from. For example, the property can be either sold or rented out to maintain the possession of the property.

The best practice for this is to get the help of an expert to take care of this matter for you. Being proficient in financing for purchase of a new property, financial firms can facilitate its consumers in getting low interest rates and provide unmatched expert opinion to save every penny of the consumer. Their professional expertise keep the purchasers informed about the current market conditions and provide them with all the information needed to make an informed decision. It is strongly advisable for getting their assistance when buying a new home or a new office.