Buying, selling or investing in any property is the need of the day. Whether you wish to make the house of your dreams or invest in a piece of land. In this blog we will discuss about things to consider before real estate investment in Pakistan. With the rising prices and ample amount of facilities, this is the best time to invest.
“I would give a thousand furlongs of sea for an acre of barren ground.”
-Shakespeare
Real estate investment is not only the safest option to secure your money but also to live in a proper house or get return on investment in future. You must have heard the term ‘Real Estate’ before and you might have bought some piece of land or property too. But do you know what real estate is and what to consider before investing in real estate?
In Pakistan commercial real estate is more good investment opportunity rather than residential , checkout some of the best commercial areas to Invest in Peshawar and make your move.
These are pretty tough questions , but extremely important ones to consider before making any real estate investment decision.
“Buy land, they’re not making it anymore.”
-Mark Twain
All your queries regarding real estate investment will be answered below as we have listed down some of the factors to consider before buying properties.
Factors to Consider Before Buying Properties:
- Location of Property
- Value of the property in Future
- Budget
- Secure Real Estate investment
- Construction Cost on the Property
- Check the Property Classifications of real estate land
- Analytical Skills
- Capital
- Why should you invest in real estate?
With multiple housing schemes, real estate agents and multitude of different locations, you have to consider many things before investing in any real estate investment opportunities.
1. Location of Property
The place where the house or piece of land or property is very important. The location or the area you are thinking of investing in the most important factor to consider before looking to invest in. You really need to consider the benefits of investing in real estate before making any decisions about investment. Check the closeness of markets, green belts, accessibility for specially-abled people and the terrain of the land. It should not be a place where there is waterlogging. Newly developed sectors usually have very low security and are not gated communities. This leads to robbery or several such instances where property and lives are at risk. Whether we are talking about location of property , Checkout some of the famous shopping malls in Islamabad on the best locations where people can get good ROI in future.
Hate traffic? Do you want to reach the office on time ? Hence, make sure you live in an area that has less traffic and multiple routes to reach. Do check if there are schools present. Hospitals or clinics, at least some of them should be present for emergency situations and first-aid. Before real estate investment, make sure you check if there is a medical store in reach. If you like nature , then check for parks and lush green areas.
One very pertinent factor to consider before investing in a location is to check whether the property price will increase or decrease over time. You can conduct some research and talk to some professionals in the field to check the value of the location. One very authentic move would be to contact public agencies or urban planning authorities in that locality to check the future plan of that area. In real estate you can also check track record of companies before investing in their projects , checkout some of the best real estate companies in Peshawar where people love to invest.
2. Value of the Property in Future
Can you predict the future? You surely can not but there are real estate agents and proper urban planning authorities who can. Are you tracking the prices of real estate in your area? Like we stated above, it is extremely crucial for us to know how to invest in real estate, which factors to consider in buying properties. Do an investment analysis and check the taxation beforehand.
Check the recent sales in that area. One of the major benefits of investing in real estate is that you can sell your house and make it more valuable in the market.
However, if you plan to rent out your property, you must first assess whether people or businesses looking to live or operate in the area can pay a price that makes your investment viable. To put it another way, you need to know that your property will not simply sit with a “For Rent” sign for months while you pay for its care with little to show for it.
3. Budget
Make sure you do not go out of your budget or rely on debt before investing in any property because no one knows the future and no one knows whether you will be able to return that amount later or not. Hence, always consider staying in your budget and check whether you can afford an apartment, land, house or even a villa. Always create an estimate if you are planning to build a house in that area. Make sure to check if there are any hidden charges. Another important thing in real estate is to get proper education before investing , checkout some of the top areas for buying houses in Karachi where you can invest and can get good returns in future.
4. Secure Real Estate Investment
Never ever invest in a society that is not secure or does not have a legal status yet. Verify the society by a legal source and double-check the documents before making payment. Your money should be safe in any place that you invest in and make sure that a good real estate investment gives you proper return.
5. Construction Cost on the Property
While buying a piece of land, one of the things to consider is the cost of construction of the property. Whether it is 3 marla, 5 marla, 10 marla or 1 Kanal the cost of construction may vary depending on the location. Check the cost of construction before building any commercial or residential building. Also get NOC, if it is a commercial building, e.g a mall. Read blog on best construction companies in Pakistan.
6. Check the Property Classifications of Real Estate Land
A real estate investor must choose a property that will deliver a good return on investment while remaining within their budget. Each real estate investment property has its unique set of advantages and disadvantages, so you should know what to look for ahead of time. If you want to invest in big cities like Islamabad and Lahore then checkout some of the top areas for buying houses in Lahore and get good returns on investment.
You can invest in the following sorts of real estate properties.
Apartments, bungalows and townhouses are prominent types of residential housing. Before investing in residential properties, consider if it is better to build or buy a home. You may discover that investing in a rental apartment or a vacation house is the greatest way to make money.
- Residential Realty
- Retail Realty
- Office Realty
- Industrial Realty
7. Analytical Skills
Real estate investing necessitates a high level of analytical thinking. When making decisions, you must be sensible. Every decision you make in this investment will have a significant impact. You’ll have to decide which property to buy, and then you’ll have to make further selections until the property is sold. To make the best selections, you must have a keen eye and evaluate the marketplace. If you are unfamiliar with real estate, you must conduct a thorough study prior to making an investment. To make well-informed selections, you’ll need to be quite knowledgeable. It’s also beneficial
to form alliances with persons who are already well-established in the field.
8. Capital
This is one of the most important things to think about before investing in real estate. In order to make your investment, you will need sufficient funds. Even if you save a lot of money, you will almost certainly need additional finances, such as loans. Investing in real estate is difficult due to the high cost of most properties. Furthermore, in addition to purchasing the property, you may be required to perform certain repairs or modifications. You must guarantee that it is in good working order in order to receive a fair price when you decide to sell it.
9. Why should You Invest in Real Estate?
Due to the following reasons, real estate is one of the greatest investment options available:
- The tangible asset is transferred to you as its whole.
- By being strategic and knowledgeable about the newest real estate market developments, you may simply limit the risk connected with real estate. In summary, the real estate market is simple to forecast.
- Certain tax benefits are available to property owners.
- Real estate brings with it a sense of security. Unlike other types of investments, such as stocks, real estate is a long-term investment that appreciates in value over time.
- You have complete control over your investment and are not reliant on third parties to handle it.
- The harsh economic conditions have little effect on real estate. In a nutshell, real estate
Summing Up
The purpose of this article is to emphasize that no “expert” can determine when is the best moment to do investment in real estate. You, and only you, will know when the time has come to take the next step in your life and buy a home. Don’t allow ostensibly professional advice to be the determining factor in your home-buying choice.
Regardless of whether you invest in residential or commercial property, you will incur fees on a monthly basis during your ownership of the property. You’ll want to budget for these expenses, like upkeep, electricity, taxes, and interest rates, so you’ll have a solid notion of your monthly net profit.
Hence, take all these factors affecting real estate market and investment into consideration, and let us know in the comment below if any questions pop up.
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