Real estate investors in Pakistan usually face an uphill task when it comes to buying and selling properties in a market that experiences its fair share of ups and downs. Investing in a property in Pakistan can prove fruitful for an investor only if he keeps his eyes and ears open. A real estate deal can bring in good profits for an investor only if he avoids some classic mistakes committed by many local investors while buying a property. With some help from online property portal Zameen.com we will walk you through the finer points of investing in a property that will prove to be a risk-free investment in the future.
A time will come in your real estate investment career when you will come across a real estate agent or a private seller who will try to speed up the selling process by paying no heed to other factors that influence a particular transaction. Refrain from going ahead with this kind of deal because there is good chance that such a property might be a disputed piece of land. In Pakistan, this trend is especially prevalent in the realty sector because families can sometimes inherit a small piece of land from an older family member. When one member wants to sell that property, the other family members will intervene and take the case to the court as a way of cementing their claim to the inheritance. Such properties are seldom considered profitable in the realty market and you will just be bogged down by a family dispute that you were never a part of in the first place.
Location of Plots
A person interested in buying a residential or commercial property should pay extra attention to the location of that property. For instance, an investor should steer clear of plots situated next to busy boulevards, schools or universities, near grid stations and in areas that are generally considered unsafe. This also includes properties located near graveyards which are known to harbor anti-social elements. Another piece of advice – refrain from wasting your money on properties that have already reached peak rates.
In contrast, plots available in a housing society will sell for a good price if they are situated on the main roads (which are wider than most city roads) and plots that are tucked in a nice little corner of a gated community.
While searching for a property of one’s choice, it is natural that the person will be especially interested in the reputation of the neighbourhood where he is contemplating an investment. As a person’s reputation follows him around all his life, similar is the case with neighbourhoods where each locality comes with its own distinct reputation. While buying a house in a particular locality, make sure that the neighbourhood harbors a good reputation and the residents are law abiding citizens. A neighbourhood with a bad reputation is not a good investment because it drives away prospective investors in the long run. Property prices in a dubious neighbourhood will naturally not match the average market prices by garnering less interest from buyers.
Collateral properties are usually offered by a borrower to a lender to secure a specific amount of loan, mostly from banks. You should be wary of such properties because it carries a certain amount of risk in case the borrower fails to make the promised loan payments. In this situation, the lender can seize the collateral (in this case the property) to make up for his losses. Before jumping into a deal, make sure that you conduct a background check on the status of a particular property. Investing in a collateral property is a big no if you have limited resources and can only invest in a single property of your choice.
It is obvious that before making a real estate investment you should skip the kind of properties discussed above. Other than this, make a little effort to conduct research about your favourite property and learn the art of assessing people and situations to make the kind of investment that you won’t regret in the future.