Case
LAHORE RESIDENTIAL REAL ESTATE: BUY VERSUS RENT DILEMMA
INDUSTRY :REAL ESTATE
AREA :FINANCE
ORGANIZATION :-
LENGTH :5
LUMS No :02-650-2019-1
PUBLICATION YEAR : 2019
ABSTRACT:
In early 2019, Bilal Malik, a bank employee, was considering moving out of the joint family set up along with his wife and two sons. He had contacted an old friend Faizan Ahmad, a real estate agent, to help him find a suitable house at a good location in Lahore, near his parent’s house in WAPDA Town. Bilal was inclined to rent an 8 marla house but was also willing to consider the purchase option, as suggested by Faizan. Rental was a relatively easier decision compared to the purchase option, primarily because of the long-term commitment and a massive initial funding requirement. However, owning the property had numerous socioeconomic benefits. Given the real estate dynamics and his circumstances, Bilal wanted to take his time to carefully analyse the buy versus rent decision using the time value of money concepts.Please contact CRU for excel file for instructor.