As a novice in the world of real estate or investing, you might be concerned about not having in-depth information about real estate investment though there is nothing to worry about. Some simple steps are required for any successful investment pursuit in the Pakistan business market. Once you learn them, you will be well on your way to hitting some real estate gold!
Consider the following points:
Determine your Goal
Firstly, think effectively about your investment aims. You need to manage your holding power, i.e., the amount of time you are ready to hold on to your purchase before considering the option for sale. So, confirm what your specific budget is so that you can start your market research accordingly. Plus, you need to choose whether you wish to invest in the city or in the suburbs.
Once you have decided what you need, do your research by checking property options that suit your requirements. Utilize an extensive range of resources for this purpose. For the property market in Pakistan, you can search online to get the latest news and top properties in the country, and it will surely give you a good idea about where you can invest.
Moreover, assure that any project you want to invest in comes with all the legit regulatory approvals. You can check and verify with the development authority of the area to confirm this.
It is a great idea to talk to a few real estate agents about the price and demand trends in your preferred area. This information will provide you with an idea about how much appreciation in property value (price) you can assume. With thorough research, you might also be able to determine your own how-to-invest-in-real-estate-with-little-money code.
Get Your Property
Once the introductory research is completed and you have jotted down your options for real estate investment, it is time to buy your property. You must keep all legal considerations in mind and get the proper transfer and sales deeds reviewed by a lawyer.
Furthermore, consider the location and stage of development of your house or plot. These determinants have a major impact on how soon the rates of your property will go up. Always purchase property approved by the government authorities, so that you do not lose out on your investment in the case of any legality issues.
Search for a Reliable Tenant
This is where it gets quite tricky because this is the stage that sets apart seasoned investors from property market beginners. Several circumstances affect or dictate how long you must hold on to your property. These include developers’ reputation market trends, the general political situation, the project’s stage of development, and project location. For instance, projects in the Defence House Authority (DHA) are quite popular with both overseas and local investors due to their reputation for being quality and reliable development.
As for renting out your house to gain a steady income, there are several factors to bear in mind. First, there needs to be a written and signed tenancy agreement between the two parties involved. This agreement should outline the span of the tenancy, the cost of rent, when it will be paid, the rate at which the rent will develop over time, and the process of eviction in case you want your home for your own use. The eviction point should also include what actions would define immediate eviction. Register this deal with your local law enforcement authorities, so that you are not responsible for any illegal activities by your tenant. In fact, the authorities will assure that the eviction takes place – despite any possible opposition by the tenant.