Tips to Buy a Home During High Inflation

Inflation in Pakistan is at its highest point; One USD is equal to 285 today. Buying a new home in this era of inflation is very hard, but it is not impossible. Therefore, we are giving you some valuable tips on how to buy your dream home in your desired location.

Investing in established and well-known housing societies might be your destination, but if your salary is less than your expenses, then your dreams may not come true, as the prices of plots and houses are very high in these housing societies. Therefore, it is suggested that you reconsider your decision if you are planning to buy a home during inflation. Your first priority should be to purchase a home in a newly built housing society, where demand is low and quality homes and plots are available during the pre-launch period.

For example, the price of a 5-marla plot in our project, Residential Garden, is 30 lakhs, but in December, the pre-launch price of a 5-marla plot is 25 lakhs to 50 lakhs. The best reason to invest in Residential Garden is its extraordinary location, surrounded by peaceful mountains. Sanabil Garden is just  2 minutes’ drive from Bahria Enclave, 5 minutes’ drive from Park View City, 10 minute drive from Naval Farm House, and 15 minutes drive from Blue Area Islamabad.

The prices of real estate properties appreciate over time, so if you are not saving your money on a regular basis, it may affect your budget. If you are planning to buy a home for your family, then you need to consider the newly constructed housing societies outside the city. New apartment projects might also be a good choice for investment as developers often offer attractive payment plans for interested buyers.

Try to buy properties that do not require any upgrades because there are many benefits to buying an already-built home, as they don’t require any maintenance and save you money.  A very useful suggestion is to buy plots instead of houses during inflation. For this, you can consider contacting Al Safa Group about buying plots in Residential Garden. Another interesting suggestion for buying a home during high inflation is to look for houses that need repairing if you can afford it and have an extra budget. As inflation is very high, hire a professional real estate expert before closing a deal to guide you on how much budget will be required for repairing a home.

Factors to Consider When Selecting Mortgage Products in an Inflationary Environment

Interest rates:

Inflationary environments often result in higher interest rates, so it’s important to consider the interest rate on the mortgage product you’re interested in. Al-Safa marketing is offering residential and commercial properties with very reasonable interest rates which are affordable during inflation. A fixed-rate mortgage may be a better option in an inflationary environment, as it allows you to lock in a fixed interest rate for the life of the loan, rather than having your payments adjust with interest rates.

Adjustable-rate mortgages (ARMs):

An ARM may be a good option for some borrowers, as the interest rate on the loan may be lower than the fixed-rate mortgage initially. However, it’s important to consider the potential for interest rates to increase in the future, which could lead to higher monthly payments.

Mortgage points:

When selecting a mortgage product, consider the cost of mortgage points, which are fees paid upfront to lower the interest rate on the loan. The number of points required will depend on the lender and the loan program.

 Mortgage term:

Consider the length of the mortgage term when selecting a product. Longer terms may offer lower monthly payments but can result in paying more in interest over the life of the loan.

Lender:

Choose a lender that is well-established and has a good reputation. Ask for recommendations from friends and family or consult online reviews or ratings.

Inflation Hedge:

Consider a mortgage product that has an inflation hedge, such as an adjustable-rate mortgage with a cap on the rate increase.

Tax Advantages:

Be aware of the tax advantages that come with home ownership, such as the mortgage interest tax deduction.