Since the real estate industry of Pakistan is flying high in the sky with many investors willingly making a share in it, there are many opponents as well as spreading false news. The sole purpose behind this is to lower the overall value of the market and reduce the number of investors both, local and foreign.
Anyhow, if there is myth, there is debunking too.
Today, within this post, we will debunk the well-known property investment myths that are somehow interfering in your way to buy or rent a property. So, no matter whether is it your first time to invest in a property for living or investment purposes or you have been doing it previously, this post is to help you understand the fine line between myths and reality.
Scroll down to defeat your big property investment fears.
The following are some of the most common sentences you hear from your inner side and also from other fearing to take a first step in Pakistan’s real estate market.
Now is the time to debunk these myths!
If you are the one who fears that you just can’t afford to buy your dream home, trust me, you are not alone in the struggle. Instead, there are many people out there with the same fear due to a lack of knowledge.
Breaking it: when it comes to investing a big sum in a property, every single person faces budget constraints and it is completely normal. People assume that buying a dream house means investing every single Penney and not sparing anything for the unfortunate rainy days. However, the reality is not so and this is nothing more than lack of knowledge.
If you are actually looking forward to do a property investment, it is best to decide on your budget before making your first step. Buying a property doesn’t always cost you an arm and a leg only if you decide and progress wisely.
Moreover, assuming a worst-case scenario, even if your dream place is breaking your bank, it is best to take some advantage from banks or any other financial institution. In other words, try taking a loan and manage it to pay later in chunks. It will no doubt cost you a bit more because of interest rates but at least it will not leave you with an empty pocket for unfortunate days.
It is important to ask yourself first that whether you want to rent a house or buy it. But, if you really want to buy it and considering to rent it instead, because of some myth stopping you, you need to think wisely.
No doubt that renting a house seems to be way easier than buying it as it does not impose any liability on your shoulders i.e., you don’t have to fear property depreciation, maintenance, and other risks. All you have to do is to have a short time commitment to a place to live peacefully.
No doubt that renting has its own advantages but the biggest drawback is that the amount a tenant fork each month into rent can easily help him become an owner of that place within few years. Hence, if you are turning to renting instead of buying assuming that it is beneficial, break the myth and focus on buying.
There is one class that assumes that if they will invest in the real estate market, they will have no return in the later years due to depreciation.
Breaking it: when it comes to fearing the property depreciation, the buyer has to think openly i.e., if you fearing a zero return on your invested amount, you first need to believe that property investment always benefits you. It’s just that sometimes properties give you greater returns and sometimes smaller, but it is never zero.
No doubt that properties depreciate with time, but this decrease in their value is always supported by the increasing value of the overall real estate market. You should only fear this depreciation if you are intending to sell it right away after buying it. Otherwise, depreciation doesn’t matter much if you are buying for living purpose. As for the investment purpose, you only need to bit choosy for the area you are buying a property in, and it will surely give a greater return.
Last but not least, this is another prevailing fear coming in the way of the majority.
Breaking it: your investment can never go into vain if you have taken the decision wisely. This takes into account gathering all the necessary information regarding the purchase before investing the big sum. In other words, if you have already inspected some important aspects like area, location, resale value, etc. your investment will never go into vain. Moreover, adopt a rule of thumb that there is nothing like an unbelievable offer at an incredibly low rate. If someone is offering you that there is surely a hidden cost behind it. So, if you really want your investment not to go into vain, be aware of extremely low price offers as they will surely have a hidden cost.
Real estate fears are not rear. Instead, they are common everywhere. Now no matter if you are a newbie or a pro, you might face these sorts of fears since it is not a matter of few penny. Instead, it is about huge sum of money every time.
Anyhow, it is best to not let any of these fears rule over you and stop you from buying your own house. For more information, browse Instakin blogs. We have a ton of information for property investors.
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