Investment in real estate can be quite lucrative and an investor can gain high-profit returns if he or she take wise decisions. Real estate investment comes with less risk and higher returns than investing in stocks, where ups and downs are so frequent. But stating less risk does not mean its risk-free investment if you are not putting things right losses can be higher as well, in comparison to other investments as it involves large investments generally. Some people start investing in ‘flats for sale in Islamabad’ or go for ‘houses for sale in Pakistan’ as they are seen as safe investments. However, to gain maximum from real estate investment one should follow some guidelines.
Here is rundown of tips that can help you in the path of investing in real estate business so, let’s have an eye on it.
Determine your Budget
First, you need to know your investment amount, how much you are ready to invest. This will inline your market research according to your budget, you can narrow down and can choose the best option to invest among options after deciding your investing amount. You can buy land hold it for some duration and then sale same goes with purchasing of a home, you can buy rental properties whether commercial or residential, you can buy open land but all these depends on that how much you are willing to invest.
Do Market Research
Market research is key to any investment so to investment in real estate as well. Explore different options according to your budget. So, after deciding on your requirements and budget, do your market research by checking different properties that fulfil your requirements whether rental property or piece of land. You can get benefit from different resources that include online property portal, websites, which can give you an idea about different property options and ongoing projects that fits your needs. Adding more always make sure that any project in which you are interested to invest is bound with all regular legal formalities through relevant development authority of area you are interested in to invest.
Also, visit personally and talk to a few real estate agents working in that area or project to get insights of prospects of that project, prices, the interest of buyers and demand trends. This discussion with real estate agents can give you useful information about future appreciation in prices of that project or area, which ultimately will help in making wise decision to gain profits from your investment.
Educate Yourself
Gather as much information as you can because you do mostly what you consume so join different groups and forums. You can find many such groups where you can discuss or can read their discussion about real estate business, current and future opportunities in real estate business. It will give you a whole new world of ideas and opportunities where you can invest and gain profits. You can discuss your concerns with experienced investors and can have their say on different aspects of the real estate business. With such a huge expansion of social media now it is very to access these groups on your own that too free of cost any time anywhere on few clicks.
Legal Formalities
Whether you have invested in flat for sale in Islamabad or went for a house for sale in Pakistan or another property venture, Make sure the property or project in which you are going to invest is approved by development authorities of that area and covered all legal formalities to avoid any legal issues in future. Never take the risk to invest in property with legal issues, this can not only waste your investment but also can make you face legal issues.
Timely Buy Your Property
Once you are done with your market research and you decided your property, it is time now to go step further and buy your property timely. Timely investment in real estate helps you to gain more. If you are investing in the land then try to invest in the locality where development is just going to start, the investment just before the development will make you earn higher returns against your investment. For instance, buying a house for sale in Pakistan in a society which is still under development will be more profitable than buying one in a fully developed society. Give less priority to location which is already developed as investing in this property will give you less return most probably, so timely investment is key to success in most cases in real estate investment.
Investment in Rental Property
You can always invest in flats for sale in Islamabad and houses for sale in Pakistan for rental purposes. For investing in rental property consider the area where property prices are reasonable and where renting out property is easy and give you a higher return in the form of rent. Try to avoid the location where renting out property is troublesome. Rental property can be commercial and residential. Commercial property is higher in price but will give you higher returns as well, whereas residential property is less in price and have fewer returns comparison to commercial property. So, it is based on your budget what you will choose but just keep in mind that stay away from the property where it is difficult to rent out the property.
Best in Class not ‘The Best’
Mistake especially that newbies make is that they buy a house and then try to earn it into the most exotic space. Do not go for that approach because making the best house in town will not fulfill your purpose that is making a profit. Renovate or built house according to location, do not go for extra luxury if it cannot give you profit at the end.
First, fix things that are broken are damaged. Then make changes that appear nice and pops out but do not runs down your finances. Avoid expensive changes that do not pop out.
Patience
Whether you are investing in plots, flats for sale in Islamabad or house for sale in Islamabad, have patience! A stage where seasoned investors can leave newcomers far behind! After investing in real estate, you must keep patience because it is not a type of investment where you get profit from the next day. You must decide the duration of holding your property as an increase in prices depends on multiple factors. That includes trends in the market, political situations, stage of development of project, location, and development around your location so all these factors take time to increase the price of the property but surely you will get your reward at the end.
Finding Tenants
Once you have invested your money in flats for sale in Islamabad or house for sale in Pakistan, it is time to find tenants. For rental property that can give you a steady income, several precautions should be in your considerations.
Always screen your tenants, you should to whom you are giving your property against a rent. You should know their bio data, their credit report, and their criminal history. Always sign a written an agreement that clearly shows the points agreed between both the parties like rent, duration of the tenancy, increase in rent after some duration and rate at which it will increase. Also, include a clause of immediate eviction in case of any violation of the written agreement. Do not compromise over this written agreement ever and give high priority to it while renting out a property to your tenants. It should be registered then after with law enforcement agencies.
Sell Property
Time to sell your flats for sale in Islamabad and house for sale in Pakistan! As discussed earlier, timely purchase of a property can be to key to success exactly like that you should sell your property on the appropriate time to gain maximum profit. If you are feeling that your current property has reached maximum value and there is less probability of a price increase further, then immediately sell that property and purchase another property in location or in a project where chances of increase in prices in future are higher.
Do not Depend on Single Source
Never depend on the single resource while purchasing or selling your property. Always consume multiple resources to determine the current trends of prices in your area. Contact different real estate agents in your area, surf online portals and forums to feel the pulse of the market. After consuming different resources, you will get to know the real market value as it will lie between the quoted rates. After knowing current market trends, you will be in a better position to decide on your property that whether you should hold property or sell it now and invest in another property.
Token Money
When you negotiated deal while selling your property, make a practice of taking token money. Token money is a small percentage of the entire amount of deal, given by the buyer to the seller which guarantees that buyer will buy property in a given duration agreed by both parties (seller and buyer).
Avoid Cash Payments
While trading whether you are buying or selling your property avoid payments in cash, always prefer transactions through bank cheques or transfers as it is easy to track and you can get rid of handling huge amount of cash.
Managing Risks
Like other businesses, there are some risks factors also in real estate business which you have to manage to avoid losses and gain profits from your investments. Try to take as less loan as you can. Always try to clear your debt first. Check documents, ownership, and approvals from developments authorities twice. As your business grows you also have to manage finances. Keep all financial records your investments, expenses, renovation cost, documentation cost and your profits and what you re-invested. So, keep a record of every detail that will depict your growth and areas of improvement
So, these were some tips to invest in real estate business. It can be a very high-profit business for you if you cover the basics well. Just take some baby steps before investing in plots, flats for sale in Islamabad and houses for sale in Pakistan in the beginning and you will reach the top of the ladder.
