From Renting to Owning: A Guide to Homeownership in Pakistan

Buying a home is a big decision and can be overwhelming at first.Homeownership is associated with financial responsibility, security and stability.

Pakistan is one of the most populous countries in the world and here we have put together the ultimate guide to homeownership in Pakistan.

Eligibility

In order to be eligible to purchase a house in Pakistan, purchasers must meet the following criteria:

• Age: Purchasers must be at least 18 years old.

• Income: You must have a steady source of income that is sufficient to cover mortgage payments.

• Credit: A good credit score is essential to be able to access mortgage loans.

• Documents: You will need to have all the required documents of proof of identification and income.

Buying Procedure

Once all the eligibility criteria mentioned above are met, it’s time to begin the process of buying a home. This process involves:

• Identifying the property – The buyer must identify the location and type of property that they want to buy.

• Making an offer – You, either personally or through a real estate agent, should make an offer to the seller.

• Signing the agreement – Once an agreement has been reached, both parties will sign the necessary documents.

• Payment – The buyer then settles the payment through a mortgage loan or cash.

• Registration – The property must then be registered in the buyers’ name.

Taxation

The buyer is responsible for paying any applicable taxes when buying a property in Pakistan. These taxes include but are not limited to:

• Stamp duty: This is a one-off tax payable on the purchase of a property.

• Capital gains tax: This is payable on any profits made when selling the property in the future.

• Property tax: This is an annual tax payable on the value of the property.

Final words

Homeownership in Pakistan is a great way to invest in your future and create a secure financial footing for yourself and your family. Understanding the eligibility criteria, buying procedure, and taxation involved with purchasing property in Pakistan can help you make an informed decision when it comes to buying a house.