Property investment tips
In Pakistan, real estate investments have always outperformed all other asset classes over whatever time period we compare. House prices in Pakistan have a low volatility when compared to stocks and other asset class. Property investment is a good idea but investments should be made after market research. Here are few tips one should consider before investing in property as they always give more returns:
One of the most important things to get right as an investor is location. Being close to schools, colleges, universities, hospitals, parks, shopping centers and aspiration areas such as city centers is more desirable in the short and long term. Transport links should be considered too.
It’s important to look at the rent ability or re-sale ability of your potential purchase to ensure it’s a sound investment. Look for high occupancy potential properties that need a makeover, as this yields a better return on investment. Some housing societies are center of sale and purchase and have long list of buyers. Property bought in these localities are good investments due to number of buyers and re-sale ability.
Properties with modern design are more desirable. Modern properties are designed in straight line, are simple and decorated with dressed stones. They always perform best and have great demand as compared to the properties with traditional features like slanting roofs, arches, etc.
Properties perform well in developing societies. After developments, properties become expensive and give more returns. But remember this is a long term investment, like 3-5 years.
Small size properties
Small size properties always out perform the bigger ones. Reason is the strong demand from buyers due to the declining purchasing power of the general public in Pakistan.
Buyer confidence is back, so you need to be prepared to move fast if you want the right property, without compromising on location, feature and re-sale ability. Competition is fierce, so if you see somewhere that looks perfect for you the chances are it’s also perfect for someone else.