In Pakistan, real estate is recognized as one of the most common and widely used financial options. Since the beginning of this year, the real estate market in Pakistan has been steadily increasing due to the high earnings and high return on investment it provides. Many people try their best to invest in it for the best profitability. By buying property and waiting a period, buyers can easily double their money.
It is a long-term investment and a preferable option. The real estate business contributes significantly to the country’s economic growth and GDP.
With the high number of investors, commercial and residential real estate sectors will increase.
Investors should have an idea about the factors related to the real estate industry and investment procedures. But it is pretty difficult for the newcomers, so they should consider investing in this field.
Factors to Consider While Investing in Real Estate Sector:
When it comes to real estate investing, there are a few things to consider to prevent making mistakes.
Location of the Property:
Although, it is a hard decision for the new investor. Choosing the ideal location, which means it has the best access from the surrounding areas, the best facilities, parks, neighbourhood, road infrastructure, and a low crime rate and green space. You can get a high return on investment in many folds if you invest in a commercial hub. You have to collect information from the public agencies or town hall.
Value of the Property and Credibility:
Obtaining an approximate value can assist you in determining whether the project is profitable or not. You should also check the credibility of the real estate firm. Ask for queries and research thoroughly, and check feedback reviews. Make sure that the housing society has NOC approval.
Payment Plans & Expected Return On Investment:
For any investment, you first need to decide your budget the make a payment plan accordingly. It is also best for you to pay in easy instalments rather than one-time payments to allow you the freedom to create the cash flow. Avoid choosing those who have a strict payment schedule.
Good Return On Investment:
Positive cash flow is also a good source of a high return on investment. The source of it can be rental income, price appreciation for a long time, and deprecation benefits.
If you’re buying a home as an investment, figure out if you’ll be able to rent it out right away or if you’ll have to wait a long time owing to maintenance.
Legal approval & Layout Plan:
You think or decide on those properties that have NOC approval by the LDA.
While buying or investing in it, you should know the area. Properties approved by a government authority indicate that they are legitimate and that you can invest in them without worry.
Layout and area of the residential society are also essential factors.
Large and famous societies have several facilities, like parks, schools, hospitals, green belts, etc. Societies that are preferable for investment can be 10 Kanal.