Out of all the major long term investments out there, real estate is the process with which people tend to associate the strangest most myths with. Now, we all know that myths are not legitimate but a concocted idea derived from some fabricated story. Are these myths real? No! So should we let them affect our real life then? Definitely No! Like many other ventures, real estate investments and their investors also become a victim of the ruckus caused by these myths or fake stories spread by some trouble mongers.
In this article we shall debunk the most commonly heard real estate myths one by one.
Myth 1: Real Estate is the Investment ONLY for the Rich
This has to be probably the most problematic myth about real estate. Many willing people are often discouraged from making an investment that could easily secure their future and help them monetarily. It used to be a popular belief that real estate investments are only feasible for people belonging from a higher socio-economic class. Now a days, the real estate market has flourished enough to create such schemes where people belonging to various socio-economic classes can easily find a payment plan based on installments and make a purchase in the time period of a few years. They have to pay an initial down payment first and the rest could be easily paid through monthly / bimonthly or quarterly investments depending upon the payment plan that has been chosen.
In Pakistan there are some real estate property projects and plans that have been successfully working on this from the past few years and have received staunch success. Lahore Smart City, Capital Smart City, Top City-1, Parkview City are examples of such convenient plans that enable people coming from various financial backgrounds to easily invest in and attain property as per their feasibility and requirements.
Myth 2: ONLY Completely Developed Areas are Worth Investing
Another problematic myth which we have is that people assuming, only the entirely developed areas situated in the most prime locations of the city have a good deal to offer. First of all the hottest and the most prime areas of the cities are highly expensive and sometimes unnecessarily too. As their price range is based more on their market value because of the location and less on the amenities they offer. There are many real estate investment projects that offer property initially at lower rates but owing to the amazing facilities and amenities they have to offer their market value, rental and resale value gradually increases with time. Their payment plans are convenient and accommodative as well. Lahore Smart City, Capital Smart City, DHA Multan are the most perfect examples of such feasible plans. Not only are they easily purchasable but also they have a great rental and resale value in the real estate market.
This is another biggest myth that most people believe while they are planning to go for a real estate investment. People always want to invest only in the prime areas which are well-connected and properly developed. But you must know that properties on the prime locations are quite expensive and prices are already at their peak. So, only a few people can afford to invest in these areas or locations. That’s why you should invest in those areas which will witness high growth within a few years. Because in these areas, property prices are still low, but the price will go high in the near future. If you want to get a higher return on your investment, invest in suburb areas.
Myth 3: Brand Name IS Irrelevant
As much as going after a brand name is discouraged in all other types of investments and purchasing when it comes to real estate, the more renowned and recognized the investment project is, the more safe it is to invest there. Real estate is the type of investment which is not only a major commitment but also require a major monetary investment. If the project you want to invest in is not well known or shady, there is a major chance of your investment to drown. This could be a considerable financial set back. By creating awareness for this fact we are not trying to discourage you from investing in real estate but trying to put forth the fact that a real estate investment requires thorough research and your dedicated time as well. Make sure you do not invest into projects that are not commonly known. Never invest in projects that are not NOC approved. No matter how much they claim to be safe or talk about procuring that approval later.
Lahore Smart City happens to be one of the most reliable real estate investment for buyers in Lahore as it is NOC approved by LDA (Lahore Development Authority), debunking all the doubts regarding its legality, if there were any, the same is the case with Capital Smart City. It has an NOC issued by CDA too.
Myth 4: Home Inspection IS Unnecessary
If you are a real estate enthusiast or buyer, and you are about to purchase a house it is very necessary for you to not just rely on the information you received but personally inspect every physical aspect of the house, apart from researching its market and resale value. You can also hire a team yourself that could study and generate a report regarding the key systems such as the material used in building the house, the age of key systems, the installed water and gas system, the condition of roof walls and plumbing. Has the house been fumigated for insects and bugs or not. Even if the sellers offer you to hire a team for this, you ought to refuse and hire an expert yourself. As the expert team hired by the sellers could be biased or have their own vested interests. Real estate is a major investment and we ought to abstain from taking these minor risks which could later become major hazards for us.
Myth 5: Real Estate Agents ALWAYS Lie
As much as we encourage thorough research personally done by the buyer before investing into any real estate project, the myth that real estate agents will always trick you into investing because of their own vested interests is not only false but also unfair to all the hardworking realtors out there. We are not denying that there is a chance of that happening once in a while but denouncing the entire real estate agents/realtors community because of a few disloyal people is wrong. In order to find a trusted agent one must be vigilant and careful themselves. Thorough research by the buyer and the information received from your realtor goes hand in hand. Realtors with their experience and hands on knowledge on the matter could help you make the best investment of your lifetime. However your lack of interest could become a hurdle in this process. So be careful!