Best time to invest in real estate
Real Estate has been a rising business in Pakistan for the last decade, so as a rising business investing in real estate has numerous benefits. With carefully selected assets, you can reap benefits from your investments. But what might be the best time to invest? Well we’re here to find that out.
First let’s start off by saying if you want to invest you need to have a financial stability, because if you are financially stable you can cover every cost without worrying about your living expenses and minor losses because in most cases purchasing a property requires down payments, closing costs, mortgage payments and property taxes. So having a good financial stability is the best moment to invest.
Market conditions play a vital role in investing opportunity, as sometimes it may prove favorable while other times it may be non-profitable, so knowing about the present opportunities defiantly provides you with an upper hand sometimes. There are three types of markets in general, buyers’ market, sellers’ market and balanced market. Buyer’s market where demand is low but inventory is high, this is the perfect time to invest as the prices decrease exceptionally and sellers want to sell desperately sometimes. While on other hand during seller’s market period, the prices are really high so buying during that time can be detrimental. And finally in the balanced market the supply and demand are fixed so the prices don’t change much.
Another important factor before investing anywhere is to do a little research. Researching is easily the most important factor before deciding when you should invest, you should do a market analysis to see where you want to invest, and for that it is recommended to find new and emerging projects, since they will be low-priced at first and get expensive as time progresses. For Example a new project is emerging in Islamabad by name The Life Residencia Islamabad, the project has not even begin its balloting process so it is still pretty low-priced investment but after a few years its prices will go high exponentially, as this society is near the International airport Islamabad, CPEC Route and Islamabad Motorway.
Knowing your goal can help figure out what kind of property you are going to look for. Make a plan of what you want, do you plan on keeping the property long term, do you intend to buy as a personal residence or change it to rental, how much income are you expecting. Deciding to own a property before turning it into rental can be very profitable in the long run, as you will know the house from inside out, its maintenance issues, as well as the neighbors, these factors which will make it easier to maintain.
Buying in an area where infrastructure projects are underway is a good way to ensure your property will holds value for years to come. If something like a theater, sports arena, or mall is being built nearby, that’s a good sign that the area is improving and its value will be increasing. When one of these things built in an area, hotels will also spring up and cause the area to flourish.
If the location is drawing interest from people, it’s should be safe to invest there. Areas with flourishing job markets will sure to have influx of people moving towards them, circulating the real estate economy. Areas with cultural, or artistic scenes will also bring a significant return on investment. If the city becomes overprice, look at the outskirts of town because they will most likely be in demand soon.
Another factor is to wait for the right time of the year. People are busy in some times of the year for example during the month of Ramadam the people are mostly busy in prayers or preparation for EID, so sometimes the demands decrease and you can be there to seize the opportunity and buy the property for less price.
Many buyers think that handling a real estate transaction is easy and they can do it on their own. But the market constantly changes, so the process may not go as easily next time. It’s always best to take help of a real estate investment expert when purchasing to ensure the best deal possible and that you don’t extra by comparing similar sold homes in the area of your choice.
Inversing Real estate has become even more convenient for overseas and local Pakistanis, ever since government introduced new policies regarding the sector. The Prime Minister of Pakistan, Imran Khan has been encouraging construction & development department and has been encouraging the efforts of investors and business men, since his vision aligns with development in our country. So better invest now while Mr. Imran Khan is still Prime Minister, who know what policies the next government might change.