Blogs

Check out market updates

Rent is modern age slavery

Rent is modern age slavery

If we observe main stream media (MSM), everyone is yelling about freedom in 21st century, but it’s just to fool people so they never know their real problems. The reality is that biggest slavery in human history can be seen in 21st century in form of debt & rent slavery. Major reason of rent slavery is that property mafia is very strong in every country. In the absence of property ownership laws to restrict more than one or two properties, few people buy lot of properties and other people just pay the rents, this is why rent is modern age slavery.

Situation in Pakistan

Renter are also increasing in Pakistan as land and properties are secured by few people with black money. When black money is widespread, property prices are always abnormally high. High property prices reduce the ownership and when people cannot buy property they have to just rent it. In just last 10 years, property prices have skyrocketed in Pakistan. This is the gift of unchecked black money in Pakistan.

Many families even cannot afford to rent a decent home

Ideally people should spend just 30% of their incomes on renting a home. But in Pakistan many people are paying 50% or more of their incomes on rents. After paying rents, many people have very less money to spend on food, education, medicine or other needs. Everyone is not blessed with parents who own homes and even most private companies don’t pay rents. People with 1 Lac monthly salaries are complaining about high rents, so we can easily imagine the miseries of people on minimum wage.

Some efforts to provide affordable housing in Pakistan

The Punjab government started the Ashiana Housing Project to provide affordable housing to general public. The aim is to provide the affordable houses as compared to open market. The effort is stunning but due to limited scale masses couldn’t benefit it. The government of KPK also started the affordable housing developments but once again scale was very limited.

What are the remedies?
  • Affordable housing should be developed in every part of Pakistan for the people on minimum wage.
  • If government cannot provide housing, people on minimum wage should be given rent benefits.
  • There should be restriction to buy more than 1 or 2 homes.
  • Influx of black money in real estate sector should be controlled.
  • Every new residential development should provide 20% affordable houses, as it happens in Western countries.
  • Affordable housing should be included in the infrastructure developments. If we can spend billions on roads, hospitals, schools and colleges, then why not for housing?
Recommended:
Homelessness in Pakistan

(13) Comments

  1. Abu Tahir

    on   said 

    Dear Friends

    I am surprised that apart from Zameen dot com, there is another website which is being updated.
    I have a query please!

    –How much is the cantt tax rate on the residential house in Rawalpindi cantt?
    –Is there any relax on house rent if plot is small in size?
    –Tax is payable location wise or on flat rates?

    Waiting for your help, friends!

    Reply
    • Abu Tahir
      FOR TAXES ON SALE & PURCHASE OF PROPERTY
      Tax is payable as per location as different locations have different rates (DC Rate & FBR Rate). For registry of property 5% stamp duty as per DC Rate and 2% WHT as per FBR Rate if you are filer and 4% WHT if you are non filer.
      FOR TAXES ON RENT
      No tax is applicable on rental income if the total amount is less than Rs 200.000 per year and owner has no other income source than the rental income. The rental income of Rs 200,000 or above is to be taxed. Tax slab on rental income is:
      Annual rental income 2-6 Lac = 5% of the gross amount
      Annual rental 6-10 Lac = Rs 20,000 plus 10% of the gross amount
      Annual rental 10-20 Lac = Rs 60,000 plus 15% of the gross amount
      Annual rental above 20 Lac = Rs 210,000 plus 20% of the gross amount

      Reply
      • abutahir

        on   said 

        Dear Sir,

        Thanks for the reply!
        But my question is:

        How much tax by the government on the residentail plot/house in Rawlp[indi cantt area?

        Reply
    • abutahir

      on   said 

      “–How much is the cantt tax rate on the residential house in Rawalpindi cantt?
      –Is there any relax on house rent if plot is small in size?
      –Tax is payable location wise or on flat rates?”
      **************************************************************************
      Dear Admin
      Your reply is awaited, please?

      Reply
        • abutahir

          on   said 

          You are simply blessing indeed.
          I am sorry, I could not put my question in clear!

          I have a 8 Marla house in Rawapindi and need to know how much is annual (property/house/or any other name of tax), I need to pay to the govt?
          Does it go by sq ft or per Marla?
          Is it area specific?
          I DO NOT WANT TO SELL MY HOUSE
          I just want to know the annual regular govt tax on my house

          Reply
          • Abutahir
            Annual property tax is calculated as per Marla.
            Cantonment board wills end you the letter about the tax then you can pay it.
            Annual property tax is in form of sewerage and water bill. Its like 1-2 thousand rupees per year.
            Don’t worry unless you get a letter from cantt.
            Yes different areas have different tax rates too due to different property value as per DC Rate and FBR Rate.

  2. Muhammad azeem uddin

    on   said 

    Sir
    This is beyound to understand the missing links between people of Pakistan and the decesion making group of Pakistan.

    Your analysis is 100% correct. This is bad luck for Pakistanis that their leader is unable to resolve their problem since 70 years.

    Now I have been line up my hope with ALlah.

    Like you people providing REAL analysis and PICTURE then why not… MEDIA… MINISTERIES….AND OTHER GOVERNMENT AUTHORITIES… are focusing this kind of problem…

    I do not seen even 30 minutes having focusing the problem of Pakistanis… in media???? Talking about HIGH RENT… ROCKET HOUSES PRICES !!!!!

    Reply
    • Muhammad Azeem Uddin
      We have to develop Pakistan as a welfare state (WHERE ROTI, KAPRA AND MAKAAN IS AVAILABLE FOR ALL)
      I personally think that China is the real role model. All Chinese progress is to end poverty. China is bringing 15 million people out of poverty line every year. This is the real progress. Society where few people have everything and masses are deprived of basic facilities is short lived.

      The shining India slogan ended very badly as few became very rich at the expense of masses. Now we see revolt in every part of India.
      The other dimension is the unchecked population growth. We have to control our population to end poverty. 4 crore people in Pakistan have no toilets. 50% housing stock is old in Pakistan to be replaced. We urgently need government housing like western countries.

      Reply
    • RIZWAN
      The intention of this blog is not to declare renters as slaves but the atrocities of property mafia or black money people who have enslaved the countries.
      FRUITS OF CAPITALISM.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *