What comes to the mind of a first-time investor who has never invested in real estate? Fear? They perceive it to be risky and worry that they will end up in a debt. These worries only arise when the investor isn’t well versed with Pakistan’s real estate market. However, investing in property is not a risky proposition, as long as the right steps are taken in research, gathering information and working with an experienced professional.

We at Beacon Investment have compiled a checklist that can minimize the risk when investing in Pakistan’s real estate market.

Proper Research

With technological advancement and innovation globally, everything can be found at the touch of your fingerprints. You can confidently get insights on properties with only a few clicks while you’re comfortable at your home. Get information on developments, developers, property location, popular areas and which developers have a positive track record. It is advisable to check the amenities such as gas supply, construction vehicles and electrical connections in the area.

Another factor to research is the location. The location of the property plays a major role in the value of the asset and even benefits in reselling. A prime location would be near commercial areas and amenities such as recreational centres, educational institutes and hospitals, should always be favoured and be an instrumental factor during the decision-making.

Try not to leverage yourself

Before making an investment in property in Pakistan, make sure that you have set aside some funds that will act as a hedge for you when there are unseen situations that occur, such as delay in reselling. The only thought process for extra funds is that you should not have to make hasty decisions in case of an emergency and your savings will earn you decent returns and you do not slip into the pit of short-term market downturns.

Expert Advice

One cannot become an investor solely relying on online research. Most clients want to save money by not taking advice from professional real estate experts and mostly end up making the wrong decision. Real estate experts have a skill set which helps you save both time and money. These experts will guide you with pricing, location, investment options best suitable for you, better payment plans and negotiation skills that can help you secure the right decision. Further benefits are:

  • Market analysis
  • Portfolio management
  • Documentation
  • Pricing and negotiations

Safe and Secure investment

Prior to investing, make sure that the investment is 100% safe and has no hidden terms and conditions. Check the credibility of the property and the society you are choosing to invest in. Some properties may be showing profits at the moment but the value could drop over time.

A good investment is secure, gives ROI and has high liquidity. If all these elements are present in your property, then you’re all set to go.

Don’t be too quick, but don’t take too long

When investing for the first time people tend to make hasty decisions without taking the advice of a real estate expert or conducting proper research. They let their emotions cloud their judgment and end up paying more than that they initially anticipated. Be calculated and discuss all matters with your real estate consultant before proceeding.

You may also end up taking so long that you could miss out on a profitable investment opportunity and eventually purchase a second, less profitable property.

We hope that this short article will be helpful to get started as an investor. If you are interested in investing in Pakistan’s real estate and looking for safe and secure investments, feel free to contact our team.