Comparing real estate with other forms of investments, you can observe that it has a more favorable reward and risk portfolio; however, the liquidity is relatively lower. Many factors are conducive to the favorable perception of real estate investment. Just like in any other form of investment, uncertainty also plays an important role in investing in real estate.
The first aspect that you can be aware of is the location of the property in which you are about to invest your money. Location is the most crucial factor in determining the profitability of any real estate venture. For residential properties, proximity to amenities, neighborhood and peaceful ambiance matter the most. For commercial properties, proximity to warehouses, markets, freeways and industrial zones are imperative to consider.
After buying your property, you must keep in touch with it and maintain it regularly to prevent yourself from incurring heavy losses. Before you buy the property especially a commercial property, inspect its tax history before getting into trouble. Moreover, also review the insurance history of the property and take a glance at the claims filed over the history of the property.
You can also visit the municipality building and take a look at the property survey and certificates of completion. Always try to go for an area which is high in demand by people seeking to live on rent and possibly will buy it in the future. Moreover, go for a property if its maintenance cost is less than the rental revenue.
Keep an eye on the development projects that are about to start in the vicinity of the property and then anticipate the price hikes in the area of the property you are about to buy. Take for instance, DHA started to plan the signal-free corridor back in 2017 and it could have been anticipated that the commercial and residential properties could increase in value.
Moving forward, you must talk to an experienced real estate developer who can guide you through the market trends and how people are perceiving the areas where you are planning to invest your money. The cost of hiring a professional can be easily recovered from the profits you can earn from a prudent and wise investment in real estate.
For more information on real estate in Pakistan visit OLX Pakistan’s website. OLX is an online market place that sells a diverse category of products from automobiles to real estate and mobile phones and much more!
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