How Much House Can You Afford?

Home affordability calculations!!

Houses are profoundly unreasonably expensive in Pakistan. To start with reason of irregular property costs in Pakistan is the quick ascent of swelling than compensation. Second reason is the deficiency of lodging as we require more than 10 million new units. Third and real reason is the convergence of dark cash in land division which has falsely expanded the property costs.

What is the world affordable house price to income ratio?

World reasonable house cost to salary proportion is 5:1. As indicated by this proportion a man can purchase a house subsequent to putting in 5 years of pay. Be that as it may, in Pakistan it’s roughly 14:1 which is exceedingly exorbitant.

What house your salary can buy in 2017?

Single salary:

Earning per month = Rs. 15,000/-

House one can buy = 9 LAC

Earning per month = Rs. 25,000/-

House one can buy = 15 LAC

Earning per month = Rs. 50,000/-

House one can buy = 30 LAC

Earning per month = 1 LAC

House one can buy = 60 LAC

Two salaries: (In case both partners are working)

Combined earning of a working couple per month = Rs. 30,000/-

House they can buy = 18 LAC

Combined earning of a working couple per month = Rs. 50,000/-

House they can buy = 30 LAC

Combined earning of a working couple per month = 1 LAC

House they can buy = 60 LAC

Combined earning of a working couple per month = 2 LAC

House they can buy = 120 LAC

Pakistan housing market is in bubble phase

Individuals or couples with 2 Lac for each month pay rates can purchase only 5 Marla or 125 square yards house. This demonstrates lodging is exceptionally exorbitant in Pakistan and is in bubble zone prepared to bust soon. Either costs will be down or we will see gigantic ascent in pay rates. In any case, it’s better if government begins moderate lodging advancements, generally vagrancy will increment in Pakistan.

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