Some people opt for homeownership rather than renting a residential unit for the sole purpose of avoiding recurring rental costs. While there’s no end to the renting VS buying debate, homeownership, without any doubt, comes with its own set of expenses. So, if we take into account the associated costs of owning a house; you might run out of fingers. Whether it is premiums, bills, taxes, repairs, or renovations, these costs will eat away your bank balance if you’re not well-prepared for them.
Being Pakistan’s most trusted name in the real estate industry, it is our responsibility to keep our readers aware of every perk and problem associated with property ownership. So, in this blog, we’ll discuss some of the hidden costs of owning a house in Pakistan.
Let’s begin!
8 Hidden Costs of Owning a House in Pakistan
Let’s start with the most obvious fact; owning a house doesn’t come cheap these days in Pakistan. According to real estate experts, most homeowners in the country end up spending far more than the actual sale price of the house. Not to mention the fluctuations in the market, and the times when new homeowners want to design their newly purchased property according to their taste and style. All factors considered, here’s a peek into an average homeowner’s expenses list:
- Property Taxes
- Insurance Premiums
- Occasional Renovations
- Utility Bills
- Home Maintenance
- House Fixtures
- Pest Control and Cleaning
- Savings
Property Taxes
Property taxes are usually paid on a quarterly or yearly basis and every homeowner is legally obliged to pay them. It might look like an expense, but property taxes are not any lesser than what we call guaranteed “annuity”. It is a cycle where the government receives taxes to generate money for public services. For the most part, property taxes are utilised by the government to offer various services in return, such as:
- Security and fire protection
- Garbage collection
- Maintaining roads and public spaces
- General state services
More importantly, you do not have much say in determining tax charges since the government decides the number and amount of property taxes. However, you can get a better understanding of various property taxes in Pakistan to anticipate the expense and start putting aside some amount for them.
Insurance Premiums
Ever wondered why insurance premiums are the second most important head in a homeowner’s expenses list? Well, property insurance works as a safety net against hard times and unforeseen situations when a homeowner cannot help but become vulnerable. Cases like natural catastrophes, robberies, or fire accidents are not in human control, but getting insurance against these potential threats is.
Some people still think of property insurance as an expense, and we can only assume that’s because of their lack of awareness or perception since it’s a fact that property insurance is an investment that carries zero risks. If you’re slightly convinced to get your property ensured, check out our list of the popular institutions in Pakistan offering property insurance.
Occasional Renovations
Occasional renovations might appear to be a one-off cost of owning a house, and there’s some truth to it. Let’s begin by understanding the need for renovations. A person’s residence is his personal property, and every homeowner wants their property to be all about themself. Hence, it is quite natural that you want your house to reflect your unique style, family traditions, and your unique personality.
While family traditions remain quite unchanged, style and personality tend to evolve and get better with experiences. So, it’s only natural for you to want to get rid of the colour theme, the matching curtains, and sofas that went very well with your style last Eid. But we recommend that you spend wisely and do not go overboard when you switch from flower pots to flower vases. Take a few DIY projects to save yourself some money.
Utility Bills
Utility bills mostly depend on the part of the country and the type of services you subscribe to. No matter what you do and where you live, you cannot enjoy life without availing essential facilities such as electricity, water, gas, TV cable, and internet subscription. While you can have control over the usage of some of these utilities and save some money, you cannot entirely avoid any of these.
Home Maintenance
Home asks for nothing but maintenance; monthly, quarterly, or yearly – there are a million unexpected maintenance costs of owning a house. Whether you have to prepare your house for winters, unclog the gutters, replace the flooring, or repair the wall cracks, you cannot keep a count of these on fingers. In short, there’s always something that needs to be repaired or entirely replaced. As such, it only makes sense to set some amount aside for when the repair or replacement cannot wait any longer. Also, repairing something at the right time might save you the replacement cost, so it is always better to be quick about the things that need to be fixed in your home.
House Fixtures
Whether you prefer doing your fixtures all by yourself or you like saving time and hiring a professional, you will have to pay the price to keep your house intact and welcoming. Your family cannot do with an out-of-order toilet, leaking air-conditioner, or a broken window. On top of everything, you also might come across problems such as plumbing leaks or out of order geysers now and then. In short, house fixtures can be minimal, but if they happen to demand your attention at the same time, then be ready to watch your budget get severely dented. So, if you’re considering buying a house anytime soon, add house fixtures to the list of expenses associated with owning a home.
Pest Control and Cleaning
House infestation problems happen from time to time and vary from the region you live in. Although they’re not a big deal to fix with basic cleaning and fumigation, they certainly require you to spend. Keep in mind that older homes are more prone to termites, cockroaches, dust mites, and other bugs of such kind. Comparatively, a newly built house might not get infected as easily as an older one. No matter if the house is old or new, it is your asset, and you will definitely not want to see it turn to dust. As such, this expense is among the unavoidable costs of homeownership.
Savings
Eventually, every homeowner finds out that there are a few apparent and some hidden expenses of owning a property in Pakistan. They also discover that homeownership is not a one-time expense, and much more than just a monetary investment. Owning a home and then keeping its ownership requires your time, energy, and attention. With proper planning and savings, you can make it a little less challenging and taxing.
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