The field of real estate Pakistan is massive and ever growing. The potential to setup your own business in the industry is also growing and by the day and the competition is getting tougher. Truth be told; real estate industry is not as easy to fit into as it may sound. A lot of people dip their toes into real estate investment but then move away from it when the market situation shakes up a bit. It is important to adopt a work ethic and develop a skill set that leads to success in the long run.
In the 1st part of our article we discussed the traits that make a real estate investor successful on the market. This article is going to be a continuation where we further elaborate on such qualities to adopt. Learning about these qualities is an amazing insight into what makes an investor successful. Without further ado let’s continue with the topic:
Keeping within your limits:
A good real estate investor knows their limits and tries to keep within that boundary when trying to invest into market.’ All that glitters; is not gold’ is a statement that successful investors keep close to their heart. With all the big and flashy deals and offers being thrown around in the market, everything that might seem attractive and profitable to invest into might not suit you the best.
Knowing and understanding one’s own work limitations can go a long way to success. This can mean that you do not go above your range of investment. Taking a loan to get your hands on a posh and upscale property might seem worthwhile however the risk of loss might not be worth in the long run for your financial condition.
Limitations are also defined by the work capacity of a real estate investor. You might think that the market is shifting more towards a particular property type, say; apartments and deal away lone standing properties you have been working with for years. Yet it might yield you profitable results to shift to dealing apartments, you will not be as efficient in your work as you made such a big change in direction going from dealing lone standing property to dealing apartments. Ignoring the efficiency and quality of work can have detrimental effects on the long run. Although eventually you should diversify your portfolio and branch out to new ideas (as most successful investors are known for); making impulsive changes to a business plan is never recommended.
Focusing on the facts:
Every successful real estate dealer knows to keep a keen eye on the numbers. This means that one should never be overcome by their emotional attachment to a property or a deal when making business investment. You might want to buy out a specific luxury house in a particular residential development for dealing however it might not be the best deal to invest in. often times real estate beginners will get attached to a property hey have invested or lived into and hold on to it longer than they should, they might turn down profitable offers due to their emotions.
It should be noted that making predictions is a part of making successful investment. It is important to differentiate between emotions and predictions when investing in property. Though emotions are purely one’s own personal feelings, predictions are also a guessing game in real estate, but they are based on past records and data. A successful and bright real estate dealer looks at the market situation of a particular property and looks at the numbers, when they expect a property to go up in value; they invest on such conditions. Predictions are backed by data and are a great indicator of success upon investing in real estate market.
Putting down offers:
More investment is not always the correct option. Any real estate investor can put the condition of their business in risk after being overwhelmed by the amount of investment they have made. You might find an investment that is very attractive and a dream area to invest into but good investors know better to put such offers down knowing they cannot afford the finances or the time to deal with another investment.
Sometimes your business advisors or real estate agents might coerce you into making an investment but if you do not feel right with it, there should be no hesitation in turning such deals down. The aspect of turning down seemingly good deals further ties in with the aspect of keeping within one’s limitations when it comes to real estate dealership.
Prioritizing quality of work:
We all have heard the phrase quality over quantity. This applies very well to the real estate investor’s work ethic. An investor might find it attractive to hastily invest in a number of average deals to fish for profits; however the margin of error will be set quite low in case of any market fluctuation. Owning property translates to power in our society; however as an estate investor it is not better to own a larger number of properties. It can make business plans puzzling to figure out and the properties on hand tougher to manage.
On the other hand a successful real estate investor knows the importance of making high quality deals. While trying to make deals that are of top standard, an investor has a lot more time to think on where they want to put their money towards. While investing in top notch properties, the chances of loss are lower than on average deals. Moreover; investing in only a few high quality dealings on the market can allow an investor to pay close attention to their property and think better of its future.
All around the world and same as for real estate Pakistan; is never going to be some magical investment area that can give you fame and riches in the industry or time. Especially when considering the current state of high competition; it should go without saying that all successful real estate agents share the ethic of working hard. Not only hard work is the requirement for success, the consistency in the time and efforts you put in to make it onto the market is also going to go a long way in your success.
One should always keep consistent in performing hard work in the field of real estate. Moreover sticking to the principles of patience, honestly and quality of work in the business is a surefire way of getting success.
Patience is key to develop into anything. As we stated before real estate business is not something to grant you unsuspecting overnight success. The grind to the top of the market is going to be grueling and tough at times and it will be solely up to you to pull through the process with patience.
One has to understand that ups and downs are a part of business and they should adjust their plans accordingly. Getting a small loss does not mean you will end up in debt or a sizable profit on a single deal does not assure long term success. Staying levelheaded in real estate deals is the ultimate key that successful real estate investors have adopted.
Fear is a common enemy that blocks out many investors from looking towards real estate. There is always a risk factor involved in dealing. You might expect a deal to yield amazing profits however due to people in your surroundings; you might leave such risky deals alone.
It might seem contradictory that we are presenting being bold in investment and taking chances of risk as a trait of great real estate investors all the while discussing patience, keeping within limitations and turning down risky deals all along. Warren Buffett (An American business tycoon) stated “great investors buy when others are most fearful, and sell when others are greedy.”
Keeping in mind the consistent effort of a great investor cannot be stopped by market fears all around, the media, peers and friends might make tons of warnings about certain investments however one cannot sit empty handed.
Of course the boldness in real estate dealing should derive from data, market knowledge and intuition as well as a financial safety net to catch you in case of failure. As discussed in part 1; great investors weigh the pros and cons of every deal beforehand. This allows for room for being bold in their decisions. Successful investors do not let fears hold them back when investing.
It is important to adopt certain characteristics when investing into real estate Pakistan to increase your chances of success. Once again we’ll say that the traits of making decisions based on facts and knowledge of the market, taking bold decisions keeping within the boundary of your finances.
In real estate investment playing it smart through your dealing is always going to be the best path to success. We hope you learned from our article.