Buying a house in Kathmandu: 5 hidden benefits of home ownership

Buying a house in Kathmandu is the Nepalese dream. There is no doubt having your own home gives you a lot of satisfaction and a sense of achievement. The possibilities after you buy a house in Nepal are endless, you can have a wonderful time with your families when you live together, build memories as well as secure their financial future. There is no denying that home ownership provides quality of life for your family and increases financial stability.

The housing marketing in Kathmandu, being the capital city of the country, has flourished, particularly due to development activities, facilities and a better standard of living. Along with that, fast urbanization and migration of people to cities have contributed to the organic growth of the housing and construction sector in Kathmandu. According to Nepal Land and Housing Developers’ Association (NLHDA), the real estate sector is currently rising at 40-50% every year. The annual demand for housing is 140,000 units while the housing market is able to construct 25,000 units per year. This shows that the annual demand is increasing and the number of homeowners continues to grow each year.

Buying a house fulfills a basic need while presenting a great investment opportunity for investors. In this article, we compile why it’s the best time to buy a house in Nepal and the benefits of homeownership:

Appreciation in value
Buying a house is one of the best investment as it has appreciative value. Your home is a valuable asset that is likely to increase it’s worth over time depending upon the market. Thus, you can make a profit on the appreciation of the house price leading to financial stability. In the long run, home ownership is a great investment to develop a financial foundation for your upcoming generation.
Build Wealth

Homeowners have the advantage of generating a regular paycheck if you decided to rent out your property. You don’t have to spend money paying rent anymore. Due to inflation, competition, and rising property values, the rent tends to increase every year. Thus, you can use your home as a source of income for you and your family.

Apart from this, homeowners have the advantage of tax exemption in the purchase and renting of land and building from the government. Along with that, you can leverage your investment portfolio using home equity that helps you build personal wealth. Over the long term, you can gain big returns in rising property value that comes with buying a house.

Freedom to renovate your house

Owning a house is all about freedom. In other words, you can live life according to your own rules. You can renovate as you like, paint colors you love or do any modification as your children wish.

Renters need approval from the landlord to make changes in the rental property. Renters do not get any monetary value in return when they renovate the property they live in. Furthermore, you can make a profit by renovating the property and sell it at a higher price.
Increase in freedom, security, and stability

It’s your own house. Homeownership provides you with lifelong security. You don’t have to worry about anyone and live the life of your choice. Along with this, it allows you to have the impact in your community. You have more freedom to celebrate your time with your family. As you get older, there’s something comforting for your secure retirement. This means you can enjoy regular paycheck from home rent without doing work or you can sell it at the higher price value.
It’s cheaper in the long run

When considering the financial cost of renting against buying a house, research shows that there is a more economic advantage in buying a house rather than renting in the long run. In other words “If you bought a house today and lived there for seven years you’d save 33.1% compared to renting.” In other words, buying a house is a financially prudent decision; you can invest your money in a house that you might be spent on renting and enjoy the homeownership.

Over to you
Buying a house in Kathmandu is a big deal. If you’re thinking of buying a house in Kathmandu or investing in housing properties, there are many real estate estate/ housing developers to help you for professional advice or more information.

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