Real estate investment in Pakistan could be a great success for a realtor, investors, and potential individuals. The only hurdle is how to find successful investment options.
Talking about the industry, its contribution to Pakistan’s GDP is at a growth rate between 5.4 % and 5.9%.
To make your property investments successful, these are simple ways/rules to earn maximum returns.
“Don’t wait to invest in real estate; invest in real estate and wait.”
Successful Investment in Real Estate
Why is real estate is known to be an all-weather investment opportunity?
Being considered a savvy investment in Pakistan, it provides a constant and repeated cash flow, along with capital gains every year.
So, if you’re looking for ways to appreciate the value of your capital over time, INVEST IN REAL ESTATE, preferably in commercial properties.
Our real estate sector needs serious investors and business professionals – to earn maximum gains and uplift the economy, as a whole.
However, the investor must follow some protocols/methods to understand the strengths, weaknesses, and risks in the given opportunities. To make your investment successful for years to come, here are some tips.
#1 Educate Yourself
First thing first, get yourself educated about the ups and downs of the real estate sector of Pakistan.
One of the currencies is knowledge. Be it real estate or any other industry, if you lamely follow others’ advice/ideas you will end up losing your resources. It is essential for investment in real estate to have a thorough know-how of the industry and the running trends.
Knowledge is something that always gives you the upper edge, it takes a regular investor to level up their investment potential. A wise investor/realtor knows how to evaluate the pros and cons of generating a passive income stream from the respective investment decisions.
#2 Specific Investment Goals
Those who invest should be specific about the goals they have targeted. Like, whether you want to earn an annual capital gain or want to improve the cash flow with rental returns.
Talking about Islamabad, especially commercial hubs like Blue Area offers a capital gain of up to 18% and expected rental returns of up to Rs. 700/SQFT (around 4 years).
Making clear and specific investment goals will help you move step by step toward the planned goals and help you act accordingly, and yes, to be financially independent. The better way is to create a written plan with detailed points to look into.
#3 Assess your current financial situation
Before investing in commercial/residential projects, it’s very important to determine your current financial standing and your capacity to invest in property.
Your financial status includes your income, expenses, debts, and the accumulated capital available. Determine how much you can afford to invest in real estate, taking into account the down payment, monthly mortgage payments, property taxes, maintenance costs, and other expenses.
Talking about Pakistan, projects, especially ongoing ones, often demand a 10 – 25 % down payment with varied property taxes, depending on whether the investor is a filer. Developing projects do not incur maintenance expenses or any other additional costs, other than documentation.
On the other hand, developed projects, which offer instant cash flow in the form of rental income, incur maintenance and other ongoing expenses, bore by the landlord.
#4 Be Market Agnostic
Several local real estate markets exist in a country, but the most important fact is that the market keeps taking turns up and down. All times are not good times to invest in the market. It would be best if you speculated the potential trends, times, and how successful it would be to make a sensible investment.
It’s very important for investors to research the real estate market and determine the best locations to invest in based on their investment objectives. Look at trends in property prices, rental yields, vacancy rates, and other market indicators.
In Pakistan, property prices often go high, especially in developed localities, this is the reason why we have chosen one of Islamabad’s ideal locations, Blue Area to create the tallest corporate tower, Citadel 7.
#5 Get a Professional Guide for Property Investment plans
Property management is a challenging task. It requires proper know-how and management. Managing it without referring to expert advice is not a practical step a real estate investor takes.
Consider consulting with a financial advisor, real estate agent, or other professionals who can provide expert guidance and advice on your property investment plan.
If we want our property investments to yield the best returns, we need to consider the property management experts’ advice. So, that our resources can be invested in better opportunities.
It’s advisable to do your research too; the best way to seek professional help is to contact several agents/consultants of renowned neighborhoods in the respective city, then weigh the pros and cons of all the options being offered.
#6. Diversification
It is an important strategy for reducing risk and maximizing returns on property investment. Here are some ways to diversify your property investment portfolio:
- Invest in different types of properties: Consider diversifying your portfolio by investing in different types of properties, like commercial, industrial properties, vacation rentals, etc.
- Invest in different locations: Diversify your portfolio by investing in properties located in different geographical areas – to spread your risk across multiple markets.
- Invest in different stages of development: Consider investing in properties at different stages of development, such as pre-construction, construction, or completed properties. This also helps you balance risk and returns across your portfolio.
By diversifying your property investment portfolio, you can reduce your risk exposure, maximize your returns, and create a more resilient and stable investment portfolio.
#7 Direct Control
The most considerate step that should be kept in mind while investing the property is to never indirectly own a real estate property through partnerships, thorough indirect funds, or other forms of paper-based investments – to avoid the negative impacts of the respective ownerships.
We need to be the direct owner of the property. Always be conscious and have direct control of all your investments.
And yes, ensure you’re not investing in open-filed/unapproved/under-selling properties, they often are fraud. Always invest in properties approved by legal bodies, so that your investments remain safe and scams-free.
Conclusion
In Pakistan, the most effective, long-lasting, secure, and all-weather-friendly business is real estate. Even though the economy is fluctuating and dangerously inflating real estate investments are safe and guarantee maximum returns.
The best thing about this industry is that the government is already providing incentives, subsidies, and easy taxes to investors, realtors, and builders.
