Property investment is one of the biggest deal one attempt in a lifetime. For the sake of involving a big monetary value, it is of greater importance and involves a bigger risk. Considering the property market of Pakistan and rising trend of property investment among Pakistani and foreign investors, it has been widely discovered that the market is dense. It takes serious efforts to dig out the secrets of property investments in Pakistan. Anyhow, where there are success and profit within this sector of the economy, risk comes side by side. There are many pitfalls with the property market of Pakistan that can draw ones investment in vain by reducing the property’s value within no time.
Today, within this post, we are going to highlight the 3 big property investment pitfalls and how to avoid them. Have a look!
The fact is often ignored that the property location holds the most of the importance in property investment. Even if the property is not bought solely for an investment purpose, and it is purchased for living purposes instead, the location is of greater importance.
Suppose that a property is purchased for an investment purpose, location is the only key to yield desired return on investment. For the fact that the area or the location determines the value of a property, it is vital to study the past and the future value of any area/location you are buying a property in. no matter is it a residential property or a commercial one. For instance, two identical properties in entirely different locations can be sold for entirely different yet opposite amounts just because of the value of the location.
It can be easily explained with an example of two different yet identical houses built in Nazimabad and DHA. The one present in DHA will automatically be sold in 7 zeros, whereas the one in Nazimabad will be sold in 6 zeros. The difference is clear.
Hence, it is best and the wisest option to consult an expert before making one of the biggest investments of your life. For this, you can ask your friends and relatives who have prior experience of buying and selling properties specifically in that certain location. But it is best to seek professional assistance from any trusted real estate agent. In Pakistan, there are usually different real estate agents for different areas. Hence, it is best to consult the one in the target location. Moreover, there are also many online brokers dealing with properties in Pakistan like instakin.com.
With decent real estate experts giving valuable advice there are also many bluffers in the market. Their purpose is nothing except for fooling people with their fraudulent deals and making great sums. Considering Pakistan’s property market, there are many wolves in the sheep’s clothing hunting for decent investors to trust them with their million rupee investment.
It has been widely observed that there are many real estate agents in Pakistan who even offers free seminars so that people may trust them for their property dealings. No matter whether the investor’s investment goals match or not, all they care for is to make their own deal.
Hence, it is best to pick the renowned names in the market for your investment assistance and not get fooled by any small name for the sake of a discount of few pennies. It is the rule of thumb that a smaller discount may cost you higher in future. Hence, it is best to stay aware of it.
Staying unaware is the dumbest thing one can do while planning to step into the property market. May it be of any country and for any purpose i.e., residential living, long-term investment, commercial usage, and the options are countless, it is vital to undergo necessary research before making your depute.
Where there is profit, there is a loss as well. Property/real estate is one of those sectors of Pakistan’s economy that are playing a prominent role in generating larger monetary values. However, it has been widely observed that people are only fascinated by the positive side and are seen overlooking the negative aspects. Hence, it is as important to investigate the main features of the property as important it is to find the property. You are definitely making a wrong deal if you haven’t cross-checked the main features and characteristics. This takes into account the past value of the location, the development work in the locality, facilities, and amenities in nearby neighborhoods, transportation facility within the vicinity, and the necessity of healthcare and educational facilities within a 30 minutes’ drive at maximum.
Property dealings always involve high risk and hence one should deal them with due diligence. It is the rule of thumb to first gain sufficient knowledge about the field that you are not a part of to keep things run inflow. Otherwise, results can be devastating. Same goes for property dealings because they involve bigger sums and higher risk. Any minor mistake can cost you a fortune.
You may like this to: