Depending upon the nature and duration of your investment, Pakistan real estate market can offer a number of benefits to the investors. As compared to other forms of investments, many Pakistanis find real investments more promising. The idea of investments made in property also entices those who own a house and have limited finance options. If you are also planning to invest in any property in Pakistan, you must read the following article to learn how to get maximum benefit from your investment.
According to the 2012’s Household Integrated Economic Survey (HIES) report, which was released by the Pakistan Bureau of Statistics (PBS), the average monthly expenditure on rent per household in the country has increased at an annual rate of over 13 percent during last nine years. The survey also pointed out that over 75% of the urban population lives in their own houses and the remaining 25% lives in rented property. This trend suggests that the middle and upper class has a home of their own while lower and lower middle lives on lease. The survey also reveals that those living on rent in urban areas end up spending 83 percent more on the house rent then they would pay in rural areas.
It has also been learned that most of the rental properties in several urban areas are available at low prices. The data and findings are discussed here for all the newbie real estate investors who intend to invest in rental properties in Pakistan Real estate experts believe best time to buy property is when the money is available and properties are cheap to buy. The following tips will help the first-time investors make this investment a lifetime opportunity.
Know your Purpose!
Remember, not all investment in properties are the same so be sure about the type of property you actually want, which should also fit your finances and investment plans. Your must be sure if you want to become a landlord or hold the property for short-term investment. You should also know your financial limit. While choosing your investments option, you have to be clear if you want to invest in a house, flat or a commercial property because this decision will greatly decide your ROI. For instance, luxury flats for sale in Islamabad offer good rental return and if you do not have financial constraints, you can invest there. Since commercial developments in Pakistan are facing somewhat challenging market conditions, the first time investors should rather invest in residential properties.
Location is the Key!
While investing in a property with hopes of renting it out, location is the prime feature to consider. As compared to homes located at secondary locations, luxury homes or flats in high-end areas offer higher rental yields. The ideal locality has low crime rates and is adorned with modern facilities and high quality amenities. Before finalizing your purchase decision, you must also think about few potential selling points of your property such as distance from the nearest public transportation facility, shopping centres, medical facilities and education institutes. Making an investment in houses or flats in Islamabad, Lahore, or Karachi promises good rental returns as well as high capital appreciation.
Collaborate with an Expert!
First time property investor must avail services of a professional real estate agent. You must look for a reliable brokerage agent who you can choose to deal with in future as well. You must collaborate with experienced real estate professionals and close a deal through him because his contacts and experience will both protect you and help you identify further prospects in real estate investments.
As compared to buying a primary residence, investing in property is entirely a different proposition. Therefore, while investing in real estate, your emotions and feelings matter only for finding a property that can earn you constant income and appreciate considerably over time.