Many a time it is said that the real estate market is the most lucrative and is recommended for investment. This is mainly because land’s depreciation is very seldom. Even though this is true, there have been instances where the prices have dropped drastically owing to the fluctuation in the exchange rate, political instability, or simply because of the shift in demand and supply.
A significant amount of investors fall prey to these situations. This is because neither do they have concrete financial backing nor do they plan out their investment. If you are looking to invest in Pakistan’s real estate then here are some pointers that will assist your next move in the market:
How Well You Know The Realty Sector?
Before investing, you need to educate yourself about the latest events in the realty sector. This will help you identify the best locations and help to negotiate for the best property deals. You must also be aware of all the legal paperwork processes related to owning a property. Often, investors overlook this step which leads to unnecessary and additional work.
Analyzing Your Savings
Keeping a track of your savings before investing in the realty sector is imperative. You should know when to apply for a loan (if needed) or borrow money. This leads us to our next pointer-
Determining Your Budget
After knowing your savings, the next step is to decide whether you are going to take a loan or not? If yes, then you will also have to determine your expected monthly amortizations and how much finance you will need for it. Additionally, you work with different financial institutions that offer different interest rates and pick the one that suits you the most.
Moreover, in some of Pakistan’s leading cities, property is also sold on installments so you can look into that as well!
Finance Management Skills
Before availing of the loan option, you must also think about your financial management skills. Availing a loan is not a big deal but the real issue is how you will pay it off. Remember, there are ongoing costs to owning property that includes property tax, maintenance cost, and other expenses. Moreover, personal expenses never stop. You will have to pay monthly dues. Keep all these things in view and then decide, whether you are ready to invest in the real estate sector or not?
Lastly, before investing you must evaluate yourself. Do you intend to live in the same city for the next 10 to 20 years? If yes, then you are ready to invest in real estate in the same city otherwise, you must hold back your finance and see other investment options.