Newbie Investors Make 10 Common Property Management Mistakes
As a newbie investor, Property Management Mistakes can be a challenging game to master. Many new real estate investors get into the business, make costly blunders, and conclude that property investing isn’t for them. It can be a massive mistake because real estate investing can make you money in the long term if you know what pitfalls to avoid from the start.
Here are ten real estate blunders that all first-time investors should avoid.
Failure to Conduct Research:
When considering purchasing an investment property, one of the first tasks should be to conduct an investment property study. While you may have conducted basic investment property research and identified a property that you want to invest in, there are likely numerous other factors that you have overlooked. One of newcomers’ most common real estate mistakes is failing to obtain thorough information about the property.
Working with the Incorrect/Wrong Individuals:
Real estate blunders may be costly, mainly when they occur due to working with the wrong people. When hiring the wrong contractors, you risk going over budget or having subpar repairs that don’t adhere to specific laws and regulations. They may even abandon you early, leaving you to pay any fees incurred while the property remains unoccupied and unprepared.
Purchasing the Unsuitable Property:
It is one of the worst investment errors of all time! First, you must select the ideal investment location, one that will outperform the market because it is undergoing gentrification or is where affluent owner-occupiers desire to buy.
Then you’ll need to purchase an investment-grade property, one that will continue to be in high demand from both owners and tenants in the future.
Being Rash or Being Overcautious:
To make intelligent judgments, it takes time, patience, and the acquisition of vital knowledge to choose the perfect investment property. Excessively cautiousness, on the other hand, will not go you very far. While you should gather as much information as possible, you must recognize that you will never know everything. Because of your cautious temperament, you will never truly invest in any property if you spend too much time making judgments.
Options for Financing:
To figure out which financing choices are best for you, always seek the advice of a mortgage broker or a professional consultant. Having the proper framework in place from the beginning can help you save money in the long run. It can prevent you from making mistakes you weren’t aware you were incapable of doing.
Having a strategy:
It’s critical to have a long-term strategy that considers all of your assets. Going with the flow and flying by the seat of your trousers is not a winning business technique. You must understand where you are now and where you want to go before taking any action. It includes budgeting for a set period. Also, don’t be overconfident. Anyone can project, but they’re usually pointless unless they’re founded on facts.
Over-Repairing as a way of making up for over-paying:
Excessive repairs will not get your property out of a given price range in a specific neighborhood. If you approach repairs with this perspective, you’ll almost certainly exceed your budget, even if it’s well-planned. It is why, before investing, it’s critical to decide whether a property is worth the risk.
Preliminary Budget Plan:
Once you start investing in real estate, you’ll most likely have a budget set out to acquire an investment property. But, does your budget account for any unexpected costs that may arise? Aside from the price and a few fixes, there are several costly aspects to consider. Taxes, insurance, utilities, upkeep, and other bills that you’ll incur while upgrading should all be factored into your budget. You’ll also need to look at the property’s cash flow to see if it’s enough to cover your future expenses.
Emotional Leadership:
Many investors have lost money by deciding on a property based on their heart’s desire rather than an excellent future investment. Never allow your heart to take precedence over your brain. If you’re investing in real estate, you need to know why you’re buying and how much money you want to make. All of this data is based on factual research.
Getting no Professional Help:
Even if you consider yourself to be an intelligent budgeter, have you factored in all potential expenses? Purchasing and maintaining real estate may be costlier than you realize. What if your house was to sit empty for a few months? Do you have the necessary funds? Always prepare for the worst-case scenario and enlist expert assistance when necessary.
Conclusion:
While a novice might make numerous real estate mistakes, the most common mistake is to repeat them. It will be easier to look back and evaluate where you went wrong and what caused your significant and minor profit losses if you keep precise records of all the actions you make in every investment.
As a newbie real estate investor, avoiding these real estate blunders will help you make better judgments. Although many people fail when they start investing in real estate, you don’t have to be one of them if you have the appropriate information.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Newbie Investors Make 10 Common Property Management Mistakes
- Published in property, Real Estate, Tips & Advice, Trends, viral, Zillow
Tips For Investing In Gwadar Property
For Investing In Gwadar Property, Gwadar is located on the southwestern coast of Baluchistan. It is a port city located on the shores of the Arabian Sea opposite Oman.
Gwadar has been developing its infrastructure at a rapid pace. It is known to be a pivot of China Pakistan Economic Corridor. The investment influx in Gwadar is unprecedented. Experts have marked Gwadar as a game-changer for Pakistan’s real estate.
Investing In Gwadar:
When investing in any business project, one should do a background check and be aware of the pros and cons of the investment. For a profitable investment, one should do research beforehand. In real estate, one should search the area before investing. Some profitable areas for investing in Gwadar are the Sangar Highway scheme, New World City, GDA Housing Scheme, New Town Housing Scheme, and Gwadar Industrial Estate.
Tips for Investing in Gawadar:
The investment area’s prominent features should consist of amenities including green areas, hospitals, education facilities, parks, entertainment facilities, fuel stations, and transport facilities.
One should invest in an area that is up and coming as it allows one to be part of the development before the prices rise. The idea goes well for Gawadar as it’s an up-and-coming project, and investment in its property will be profitable.
Gwadar has a location that is planned to be used strategically for trading purposes of the country. Gwadar is to become such that all exports and imports will pass through its deep-water port. The imports will be from China, and exports will be to and from Africa, the Arabian Gulf states, the Middle East, and Europe. There will be a facility of a floating liquefied natural gas facility built as part of the $ 2.5 billion Iran-Pakistan gas pipeline project.
Demand For Property:
The demand for property in Gwadar has been rising, and the indicator of it is the construction carried out in the special economic zones of the city. The inspiration for Gwadar has been taken from Shenzen. Shenzen is a zone of China. Before its development, Shenzen had a population of 30,000 and today consists of between 13 to 20 million.
If a fraction of what happened with Shenzen takes place in Gwadar, the demand for real Estate in Gwadar will skyrocket. The statistics show that in 2014 Gwadar consisted of a population of 85000 inhabitants, and its current population is estimated to be 250,000.
Documentation Of Property:
Scams have been common in all parts of a business; one should be cautious when investing. CPIC helps with providing all required documents on time after the completion of the purchase. Faulty or non-existent paperwork may be provided as original to scam the investors. To ensure that the documents are original, CPIC comes in handy.
Budget:
Real estate requires making the right choices as an investor. It requires knowing one budget; how much an individual needs to spend, including extras and not just the purchase. The extra pay may include legal fees, tax fees, and other payments. The best idea is to keep extra cash on hand for expenses one may not have calculated or even thought of.
Once details are collected, one can get an idea of how much one can afford. One method to make a purchase at the best price is by being assisted by consultants and being transparent about one’s budget and costs throughout.
Reliable Construction:
The first step of investing in Gwadar would be buying a plot of land. The next step is to actually start the construction of a home on the plot of land bought. The reliable move would be to hire tradesmen who can get done with the construction on time at a reasonable price.
Make A Flexible Investment:
Investing in land is a secure asset and won’t wear out, or get broken, stolen, or destroyed. A finite amount of land is available in Gwadar, and prices are rising per investment; invest in land to rent out or to use yourself.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Tips For Investing In Gwadar Property
- Published in Investing In Best Deals, Investment, investment property, Investment Tips, Investments, News & Updates, property, Property In Pakistan, Property News, Real Estate, real estate business, real estate financing, Real Estate Guide, real estate investing, real estate investment, real estate market, Real Estate News
FAQ on Rental properties in Pakistan / Passive income in real estate
Frequently Asked Questions – Pakistani Rental Properties / Passive Income
Earning a passive income from Rental properties in Pakistan is by far the safest and surest way to get rich. This FAQ will answer some of the basic questions you may have in mind.
Q-1 Rental properties are depreciating and therefore do not offer high yields.
Answer- The problem of depreciation only exists in houses, especially since they offer only 3 to 4% rental yield per year. Advertisements and shops can be like new after small renovations and some apartments offer up to 10% rent to offset any depreciation effect. As a general rule, rental real estate should give you an average of 15% earnings per year. In some value classes, rent can be more than capital gains and vice versa, but it’s good as much as you get 15% of the total earnings. In addition, the benefits you receive from your rental income will be value added over this 15% or will make up for any shortcomings.
At the end of the day, you have to be careful to find a rental property that gives you a nice return. That’s why you need an expert who can analyze and predict capital gains and expected rents for at least the next 5 to 6 years.
Q-2 Do rental properties need time to build and therefore cannot offer returns as shown?
Answer- When you buy a rental property in Pakistan, you need to look at both aspects of income which are capital gains and rental income. Normally, the already-built property will offer 6% rent per year. However, if you plan to build one or buy one that is still under development, what you lose in rentals during the time it is being built, you get capital gains. Those that need time to build, such as tall ones, are usually much cheaper while they are being built.
On average, a good high-growth project will add at least 60 to 80% in capital gains over the construction period, which lasts 3 to 4 years. This capital gain is usually more than 20% thus compensating for the lack of rental income during this period.
Q-3 In rental properties, can problems arise such as lower rents, which can decrease your ROI?
Answer- Like all investments, even rental property can change under certain circumstances. However, this change can be negative or it can also be positive. For research and analysis, target conditions must be ideal for both rental property investment and speculative business investment. Because the chances that speculative traders are wrong are much higher than the tenant investor losing a few months of the lease. Therefore, maintaining the ideal situation for both types of investors is important and is in fact more favorable to the speculative trader.
Q-4 Do houses or commercials give more capital gains than apartments?
Answer- Houses, commercials and apartments are three different asset classes and will not follow similar cycles. A gain in houses over time is due to a gain in plots, which calms down after the area matures, similarly, apartments will also slow down after the building matures. Later, many other factors will come into play to decide whether that property will grow further or not. Similarly, commercials have their own cycle to follow with their own risks because a very large number of commercials do not show much appreciation.
As long as you understand the different dynamics and act accordingly, all of this will yield very good capital gains. Therefore, capital gains will depend on many other factors than just the active class.
Q-5 Which is the best rental property among houses, apartments, commercials and shops?
Answer- Houses are not suitable for rentals, however, as for the other three, each property must be judged separately to identify who will give you optimal rental returns. It will be wrong to give any preference depending on the active class as such.
Ultimately, it all depends on your choice of individual property rather than its value class. A good housing project can outperform an average business in capital gains and conversely, a good commercial property can beat an average housing project easily.
Luxury serviced apartments in Gulberg Lahore for Air BnB rentals are a safer and safer bet than other types of real estate for rental purposes.
Q-5 ROI on rental income is slow, while plots can double their price in a very short period of time.
Answer- You must have heard the old saying. ” slow and steady wins the race“. Rental properties are that turtle that seems slow but never stops, thus giving you a more stable consistent income over the period.
The unpredictability in speculative trading is its biggest enemy. Although speculative trading gives an illusion of higher returns, the high failure rate balances it out. In addition, speculative trading is not suitable if you are an emigrant or a busy person who will not have time to look at the real estate markets constantly.
Our study has shown that both rental returns and successful speculative trading can make almost equal amounts of money in the long run. So renting property leads to being the safest and safest way to achieve your financial freedom goals.
Q-6 Rental properties usually only give 3 to 4% rental income per year.
Answer- That’s not true, only houses give 3% and we already consider them as lame wolf property. Apart from this, some commercial real estate does offer only 4% rental production, but this is usually because they are not yet fully mature and offer much more in terms of capital gains. So investors are happy with them considering that the combined gains are usually 15% or more.
Q-7 (Part 1) Suppose I invest 13 million in a 562 sq.Ft apartment. After 13 years will I get my capital back on 10% rent?
For example:
Hotel Apartment Sq.Ft: 562
Tariff (kv.Ft): 23000
Total Price: 12,926,000
10% Annual Income: 1,292,600
Annual Service Fees (Kv. Ft): 30 Rs * 562 = 202,320
Own tax: 50,000
Rent Tax: 60,000
Annual in Manluo: 980,280
Answer- The calculations we provide do not cover any taxes or liabilities, no matter if you are investing in speculative real estate or rental property in Pakistan. The impact of these taxes will be felt on both sides and will certainly affect ROI but is the bare minimum. For example, the service costs are not as high as 30 PKR and in some cases, they should not be paid by you but by the developer or tenant. In addition, after one or two years, a 10 to 20% increase in rentals will cover any debts without putting a big dent in your rentals.
Second, if the purpose of the question is to compare plots or files with wolf holdings, then similar duties apply to commercial plots as below:
a. Instead of annual service costs you pay a non-construction penalty on parcels and even sometimes development costs.
b. Property tax will be paid even if you also own land, so it is not only applicable to the wolf property.
c. You will pay capital gains instead of income tax because during trading you will sell plots mostly in less than 4 years.
Q-8 (Part 2) If rent is in between it can get my capital back in 11 to 12 years?
Answer- The mistake most investors make when it comes to this calculation is that they do not calculate the profit on rental income. In reality, it will take a maximum of 5 to 6 years for the repayment of capital investment, if you reinvest your rental income at 10% per annum. This could be even faster if you invest with Feeta.pk 1 crore challenge where we can get you up to 20% annual returns.
Take a look at the calculations below, based on a conservative analysis of the apartment in question. During the construction process, we expect 80% growth, then 12% for three years, and 10% later for capital gains. Similarly, the reinvestment of capital is only calculated at a conservative 10% per annum instead of 20%. You can clearly see that it will only take 6 years for the return of your capital after ownership.
Even if we calculate capital gains at 5% after the 3rd year, the value of your asset will still be close to Rs 4 crore. However, it can be said that the rent capital should grow by 15 to 20% rather than 10%, so realistic performance can vary and the calculations below are just to understand the concept of rental investment and the compounding effect.
Q-9 (Part 3) During this period If I want to sell my apartment to invest in some other area. I will be stuck in the apartment.
Liquidating Assets (housing) will be more difficult. You may be blocked for a longer period than plot Winding. Because Average Liquid Asset (plot/house) lasts 6-12 months on normal days.
Service Apartments are good for rental purposes. But for monetization, we may be stuck for a longer period of time. Because people prefer to book new apartments for a fee not 5-10-year-old apartments at full payment?
Answer- Selling a rented built property will take a little longer than a plot or file. However, rental property continues to give you cash every year, unlike a plot or file, which is in fact a liability because you will pay the non-construction penalty and other company charges as well as development costs in case of any plots and files.
So it all depends on how you define liquidity. a property that will sell out quickly or a property that will repay you 10% in cash each year and repay 100% capital in 5 to 6 years.
Ultimately, like any other property, how quickly your apartment will sell depends on the quality of the project rather than the value class. Not all projects will be the same and sales will vary depending on your choice today. Monotation is also much better in relation to wolf ownership because you will have full capital in 6 years which can be invested again in other places.
For more information on the real estate sector of the country, keep reading Feeta Blog.
FAQ on Rental properties in Pakistan / Passive income in real estate
All About Property Mutation in Pakistan
Property Mutation, Once you have completed all the formalities of a real estate transaction, the next and final step is to register the said property under your name to make it official in government records. This is known as the mutation of a property. It refers to the entire process in which the title of ownership of a property is transferred to another person. Simply put, it is the title deed (also called a conveyance deed) needed to have the property under your name.
Feeta.pk has compiled all the basic details that you need to know regarding the property mutation process.
When do you need a mutation certificate?
- When you buy a property
- When you inherit a property
- When you receive a property as a gift
- When you purchase a property through a power of attorney
How do you apply for a mutation certificate?
Since obtaining the mutation certificate is not a legal obligation, many new property owners postpone the process. However, the mutation process should ideally be started as soon as possible once the property has changed hands – at least within 3-6 months of the land purchase. Without it, the buyer may risk facing issues in obtaining complete legal ownership of the property in question.
The process just comprises a few, simple steps:
- Visit the land administrator’s office in the concerned area (where the property is located) and submit the required documents. These may also vary according to circumstances. For example, if this is a mutation of the property after the owner’s death, applicants would have to submit a death certificate, succession certificate, etc. You can cross-check on the government website or call on the helpline for further information, but you would still have to visit the municipal body to hand in the papers.
- Both the seller and buyer have to appear with two witnesses and the sub-registrar will hear their verbal agreement for trading the property.
- This will be recorded in the Inteqal (Mutation) Register, and you will be handed a receipt.
- Afterward, you would have to submit a nominal process fee to the National Bank of Pakistan (this will be just a one-time charge).
- There will be a physical verification of the site by the relevant authorities.
- The municipal body may take up to a month to update the record, after which they would issue the mutation certificate.
Why is it important to get a mutation certificate?
Even though it is not a legally binding document, the mutation certificate is still necessary for several reasons:
- It serves as additional proof of ownership.
- You will be able to record the property under your name in the municipal local body.
- It can also be required when applying for utilities, such as electricity and water services.
- It may also serve as a tax record.
- You would need it if you want to sell or transfer your property to someone else in the future. If you are unable to produce a mutation certificate before potential buyers for verifying the chain of ownership, you may risk the sale of your asset.
- In case of land dispute, corruption or hostile takeovers, the mutation certificate can help challenge false claims in court.
- All immovable assets (individual homes, apartments, land, etc.) are subject to property tax payment, and mutation is just a way to ensure that. The certificate is required by the government to fix the property tax liability and other levies on the rightful owner.
- It can also help you correct any errors in the records in case there is an unauthorized transaction.
What is the difference between registration and mutation?
There is some ambiguity over the difference between property registration and mutation since the purpose of both seems similar. Property registration refers to the process in which you claim legal rights on a property by registering the sale under your name. The process of mutation, on the other hand, is the buyer’s responsibility and can only be initiated once the property registration has been executed.
| Property Registration | Property Mutation |
| Also called a baye-nama | Also called inteqal |
| Mandatory process after transfer of property | Not a legally required process after the transfer of property |
| Legalizes the actual sale of a property | Transfers ownership of the property |
| A sale deed | Does not require a sale to take place; it applies to inherited and gifted properties too |
While the key differences between the two are just a few, it is still important to know the significance of each to avoid any potential problems or confusion in the future if you choose to resell the property. This is why it is advised to acquire both in the beginning.
If you are looking for more information on the real estate processes in Pakistan, you can visit this link.
All About Property Mutation in Pakistan
Buyer’s Market vs. Seller’s Market: Know the Difference
Would you like to sell or buy a home at the best time of year? Despite the fact that certain seasons may be busier than others, the fluctuations in the real estate market are much more influenced by supply and demand than by the time of year. Keeping an eye on the housing market is one of the most important things to watch and watch out for whether you’re in a buyer’s or seller’s market in your local area.
Everybody wants the best deal on a new home, but it’s not always easy. In the wake of the COVID-19 pandemic prospective homebuyers have had a difficult time answering the question, “Why are houses so expensive at the moment?”.
In order to save on a new home and avoid overspending on the mortgage, savvy homebuyers try to time their purchases around buyer’s markets.
When purchasing a house, it is important to know the difference between buyer’s markets and seller’s markets. Let’s find out more with this blog.
What Is a Buyer’s Market?
Buyer’s markets occur when more homes are for sale than buyers are available. It means that more homes are listed for sale than there are buyers. Buyer’s market often refers to the state of a market where there is relatively more inventory than demand.
Lower home prices are an indicator of a buyer’s market. A seller’s home will often sell for around the listing price or even less in a buyer’s market. You cannot raise your asking price much without causing buyers to look at comparable homes offered by other sellers in your neighborhood.
Due to the volume of competition, sellers are at a disadvantage. Many sellers decide to accept a lower sale price instead of waiting for the right buyer to come along.
Seemingly longer than average time on the market is another sign of a buyer’s market. There’s likely a buyer’s market if the for-sale signs aren’t replaced with sold signs as you drive through your neighborhood. There is little chance of seeing a bidding war over a house on the market. With so many homes available, buyers are unlikely to spend more than the asking price.
What is a Seller’s Market?
During a seller’s market, the number of buyers overrules the number of available homes on the market or when there are more buyers than available homes. A single property often attracts multiple buyers, resulting in a bidding war. Selling your home in a seller’s market can be a great option because you can get a higher sales price than your listing price, or at least more than your bottom-line price (the lowest price you’re willing to accept for your house).
Be aware of the seller’s advantage when buying a home in a seller’s market. The advantage of getting a lower sale price on a property that other buyers are interested in is unlikely if other buyers are also interested.
An offer made by a competing buyer could cost you the opportunity to buy the property. The seller’s market is sometimes referred to as a renter’s market because sometimes prospective buyers must continue renting until they can raise their down payment and compete with other buyers.
According to a licensed realtor from FL Cash Home Buyers – the key to selling a property fast is to utilize as broad of a net as possible for buyers. The key to this is to find the right realtor. Realtors can help sell a house not only quicker but usually more profitably and as legally correct as possible.
The market for Buyers or Sellers? Find Out with These 4 Tips
A buyer’s or seller’s market can be determined without being an expert in it real estate. The easiest way to tell can usually be found by looking at current and recently sold listings.
A buyer’s market has the following characteristics
- Sales of homes are slow
- The homes sell for less than the list price
- The home price index is declining
- There are many homes available for sale
A seller’s market has the following characteristics
- Houses sell quickly
- The home sells at or above the listing price
- The price of homes is rising
- There aren’t many homes for sale
A Few Tips for Buyers
When there are limited housing options and a lot of buyers are interested, time is of the essence.
- A seller’s market is an excellent time to act fast if you find your dream home. Those who hesitate over a house they want to buy may find it is no longer available by the time they are ready to negotiate. Getting pre-approval for a loan before you need it will ensure financing.
- Make sure you know you’re at a disadvantage before you make an offer. There is no need to push for specific closing dates, concessions, or contingencies in a seller’s market. Make sure you focus on what’s important to you. Make sure you think twice about stipulations you want to be written into the contract. Make an all-cash offer if possible. Since cash buyers don’t have to deal with financing issues, sellers prefer them.
- Having patience is crucial when you keep losing out on the homes you are interested in. Don’t get discouraged if you keep losing out on homes you are interested in. Frustrated buyers end up suffering in a seller’s market. Many inexperienced bidders engage in bidding wars to get the home they want, even if the home isn’t worth much. That’s not a good idea.
- If you are tired of losing, you may end up making an offer on a home you wouldn’t usually be interested in. Property ownership is an investment and often a 30-year commitment. Don’t get sucked into a low-cost house. You’d be better off waiting until the market cools off before starting your home search.
A Few Tips for Sellers
To increase interest in your property in a seller’s market, you’ll need to compete with other sellers.
- Before you market or show your property, make sure your home is clean and organized, and in good condition.
- The price of a home tends to rise in a seller’s market, but pricing your home relatively still helps. You’ll be more likely to attract buyers if you lower your asking price slightly below fair market value. It is common for sellers to list their homes slightly below their assessed value to encourage bidding wars.
- Examine offers carefully: During a seller’s market, it’s even more important to consider offers carefully. In their search for the highest offer, sellers frequently ignore the buyer’s financial strength. If buyers say they will pay a certain amount, that doesn’t automatically mean they can get the funds. The appraised value of your home cannot be financed beyond that.
- Your last concern should be accepting an unrealistic offer and then having to resell your home when the deal falls through. Buyers will have more power when negotiating when your house has been on the market longer.
- Make sure any buyer who requires financing is preapproved for a loan. When buyers receive pre-approval, their credit and finances are verified, ensuring they can obtain a loan for a specific amount. Prequalification, however, is merely an estimate of a buyer’s finances.
- Observe contingencies: Also, be aware of offers that include contingencies. In the event that certain conditions are not met, buyers can back out of sales contracts, including mortgage house contingencies, home sale contingencies, appraisal contingencies, and inspection contingencies.
- According to Phil from Cash offer Please, Many homeowners choose to sell their homes through a real estate agent in order to get the best price. However, you may be able to sell your home for less than market value by making a cash offer to the buyer.
Summary
Knowing where the market stands is beneficial when buying or selling property. There is less competition for buyers in a buyer’s market when there are many homes available. On the other hand, a seller wants to list their house during a seller’s market when there are fewer properties for sale and a high number of interested buyers.
It is still important to hire a real estate agent, regardless of the market conditions in your area. A real estate agent can give you a leg up on your competition, regardless of market conditions.
Choosing the right time to buy a home can be a major challenge. In a seller’s market, you will notice that homes disappear almost immediately after being listed. To avoid losing out on what could be your dream home, you should get preapproved as soon as possible instead of waiting until the last minute.
Buyer’s Market vs. Seller’s Market: Know the Difference
Corner Apartments | Pros & Cons
Corner houses and apartments are the first choice for investment or living for all. Real estate holds high value for corner houses, and especially apartments, given that they come with their own perks.
However, there is still an ongoing debate about whether or not investing in a corner apartment is ideal, there are significant pros and cons of corner apartments that one should keep in mind while making the final decision.
In this blog, Feeta.pk discusses all the upsides and downsides to getting a corner apartment so you can make an informed choice.
Corner Apartments | Pros & Cons
Pakistan’s real estate sector is shifting towards increasing the development of vertical landscape, and this is giving rise to the availability and demand of apartments. This need for apartments is simultaneously adding to the rising demand for corner apartments. Let’s take a look at some facts that can help you decide if it’s worth it.
Why Opt for a Corner Apartment
Starting with a good note, corner apartments are everyone’s preferred choice because of multiple reasons. These reasons factor in to help you live comfortably.
Privacy
As apartments typically come with balconies and a back terrace, a corner apartment actually gives you privacy in the balcony as there is only one neighboring balcony, and the other side is free. This is ideal for people who love to keep their privacy intact and have introverted personalities, thus keeping you at a distance from any nosy neighbors that you may have.
Additional Square Footage
Because of the huge infrastructure and architecture involved in elevating an apartment complex, corner apartments usually get extra square feet in their space.
Because of this, they look and feel wider than other apartments of the same building. For instance, we can understand this by taking the example of an apartment covering 850 sq. M. ft. In this, the corner apartment may be about 120 sq. M. ft. larger due to its positioning in the building. This is a very prominent advantage that makes people prefer corner apartments.
Extra Ventilation
Even though apartments, generally, are great with ventilation as compared to houses, Corner apartments come out at the top. This is based on their L shaped design, which leaves more outdoor areas for ventilation. With corner apartments, we can also credit the importance of windows and how they keep the ventilation flowing, leaving your house fresh.
Having extra ventilation keeps your house temperature cool in summers, and the fresh air is great for your health. Besides this, good airflow keeps your house safe from water seepage, mold, and other issues that are likely to stem from a closed space.
Scenic Views
Corner apartments have the most beautiful views, and that is a sure fact. This is one of the biggest reasons why people choose to live in corner apartments. With the extra balcony space, and windows around, you can enjoy the scenery any time of the day.
Source: Pinterest
Even if there are no green areas around or any parks to view, you can always enjoy the night view of the twinkling lights from houses and buildings around that make a great view from the corner apartment.
Why Not Opt for a Corner Apartment
With so much value, there are a few drawbacks that can come in the way of your decision to live in a corner apartment. This may be a big factor for some, and for others, it can be insignificant.
A Lot of Sunlight
Source: Pinterest
Although this remains a variable according to the location and direction facing of an apartment, corner apartments usually get more sunlight than others. This is because there is less view blocking and more windows.
This drawback may be considered as an advantage by some who live in cooler weather conditions, but in Pakistan, summers can be really harsh and the sunlight can become unbearable.
More Expensive
Because of their high demand and less availability, as well as the perks that come with it, corner apartments cost higher than other apartments. Real estate has a lot of demand and value for corner houses and apartments, and resale, investment, living in these is always the ideal choice for people.
People who love the benefits that come with living in a corner apartment are willing to pay more just to create a better home or invest in a better property that will give profitable returns in the future.
Prone to Noise Pollution
Even though corner flats have more privacy than other facing flats, they can have more noise overall as well. This is because they are usually situated by the roads and intersections, busy with traffic and people passing throughout the day.
This can cause disturbance for you all day and disrupt the calm environment that your home needs.
Corner Apartments -Ground Floor
These are actually on the lower end of the cost spectrum and cost like other apartments. The difference? Well, corner apartments on the ground level do have privacy and ventilation, but the airflow and scenes are not the same.
People living in such property have to keep their windows covered at all times to avoid nosy neighbors and people passing by who want a peek. Because of keeping the windows covered, the temperature and ventilation are disturbed.
Considering both factors for corner apartments, the decision eventually comes a lot to how all these things are affected by the location, city and weather of the area.
If you’re looking for a corner apartment to move into, or are deciding to for a corner housethe above-mentioned facts can help you understand according to the location you are going for.
You can find out more information about apartments and housing at our Feeta blog.
Corner Apartments | Pros & Cons
- Published in International, Lifestyle, property, property management, Property News, Real Estate Guide, Real Estate News, uk, ukraine, USA, Zillow
Must-Follow Real Estate Marketing Ideas
In Real Estate Marketing, One cannot object to the fact that comprising a property is an essential matter to discuss. The reason behind this is that in Pakistan, real estate is one of the most beneficial investment opportunities which plays a big part in generating the economy.
But how does this all come into work?
In this blog, Feeta.pk will explain how this is done. And the answer is that real estate companies execute their work through the promotion of real estate companies. Now you might be wondering who promotes the brand and what is the reason behind it?
In today’s time of evolution and development, it has become important to have a marketing team that helps in branding your company. They design such techniques that help to boost the plan and make its presence known. If we talk specifically about the real estate sector, the marketing in real estate chooses the most prominent marketing company to create their name in the market.
In this blog, we will present some interesting and effective marketing ideas that every real estate company should follow
So, let’s have a look!
- Setup a social profile
- Make an attractive business card
- Make yourself easy to contact
- Hire a professional photographer
- Do local sponsorship
- Make your website and application user friendly
- Build google business profile
- Make social media adds
- Keep an eye on your competitor
Now, let us explain every idea in detail!
Setup a Social Profile
The first and most important effective marketing idea is setting up a social profile. This will give your company an instant boost if done correctly. For this, you will have to make social media accounts on all networks such as Facebook, Twitter, Instagram, and LinkedIn. Setting up a social profile will help you connect to your clients and also highlight your success stories. Through your social media profile, you will educate your buyers related to real estate and update them with the project that you are working on.
In one way or another, the world is now dependent on social media, you will probably not be able to make your presence without social media as much as you can with the help of it. To make your social media attractive you will have to upload nice photos, catchy captions, and above all, you will have to be active on social media for your clients.
Make an Attractive Business Card
Design an attractive business card for your company. The card should contain all the necessary information such as the name of your company, contact name and number, email, and company address. A business card would represent your company’s brand and it is also considered to be an overall business image of your business.
Your card must be designed in such a way that it inspires people and the desire to contact the company. A business card is also considered a direct marketing tool because in-person meetings lead to sharing of business cards directly with whomever you want to share them with. By this, we can say that a business card can make or break the marketing game for you. The reasons behind this are
- It gives ease of contact details
- Create a quick first impression
- Gives a personal touch
It is a fact that successful marketing of real estate lies in professional and great photography. Photographs of poor quality will make people lose interest and result in less followership. For this, you must hire a professional photographer who has experience in architecture and home photography. By this, you will be able to make your listings attractive and gain the attention of people and then this will result in helping you to get a potential buyer. Your photos will act as a support to show your clients what you have to offer. Nowadays 3D tours are becoming a popular thing. Your professional photographer can also create a 3D video of your property which will help your clients to have a 3D tour of the house while sitting at home.
Hire a professional photographer today to make your real estate company’s listing more enticing and attractive.
Do Local Sponsorship
Being a local sponsor will help you make your brand be in the spotlight. Be a sponsor at festivals, school events, or a sports team. This means that you can get your business name or brand logo on pamphlets, t-shirts, or flyers. If you will sponsor a local group you will directly become their real estate leader for reference. Some ideas for local sponsorship are
- Donate to charity
- Sports team sponsor
- Sponsor an event such as pet adoption,
- Donate money at local schools
- Contribute monetarily to different building projects
The sponsorship idea completely lies in the motto “spend money to make money” though it is an old saying it is true without any doubt. Therefore real estate companies should take advantage of these sponsorship opportunities and donate to a cause to create a positive impact on society and build maximum exposure for your company.
Make your Website User Friendly
Nowadays people get attracted to what’s easy for them to use and understand. You must formulate a user-friendly website. The reason why a website is important for real estate marketing is that it helps to educate clients and makes it easy for agents to provide them with valuable resources. A website should deliver content that helps buyers throughout the purchasing process. Here are a few features that should be included in your real estate website
- Photos and description of properties
- Searchable listings
- Customer-centric content
- A consistent look
Build Google Business Profile
To make it easy for users to find you on google maps, search and knowledge panel, set up a google business profile. The reason why having a business profile on Google is important is that it is one of the most trusted platforms for authentic reviews. You can make your business rank higher through Google’s business profile. But this is dependent on the regular maintenance of your business profile. This can be done by logging in to your profile daily and adding new content like listings and photos.
Make Social Ads
To create a presence on social media, the feature that helps the most is paid social media ads. Making social ads for your real estate business can result in excessive engagement and an increase in followers on your profile. This feature allows you to choose your target audience with a budget that suits you. Keep in mind to choose a picture or video for a paid ad that is attractive and highlights information that you would want to give to your audience. Social media ads are one of the effective ideas that can help in real estate marketing.
Keep an Eye on your Competitors
In this era of competition, it is important to keep a check on what your competitors in real estate are doing. How are they managing their social media or how does their website look? By this, you can also get an idea of the mistake they are making and you can avoid replicating them. this will help you distinguish how your company can do better. after you do your analysis, you can come up with new ideas that how can you make your company stand out.
So, which way do you think is most effective?
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Must-Follow Real Estate Marketing Ideas
Crackdown on Encroachments in Zone 4.5 by Building Control South
CDA Building Control South Director Shafi Marwat has ordered a crackdown against encroachments campaign against illegal residential and commercial construction in Zone Four and Five.
In this regard, the authority has formed two teams – with Deputy Director Javed Zehri in charge of the Zone Four team while Deputy Director Sajjad Bajwa will oversee the operation in Zone Five.
Director South Shafi Marwat has instructed the concerned teams to write a letter to the Enforcement Directorate to stop illegal constructions in the stated areas.
For news and blogs, visit Feeta.pk.
Crackdown on Encroachments in Zone 4.5 by Building Control South
Key Property Inheritance Principles
These are the Principles of Property Inheritance That You Need to Know:
A legal heir is defined as an individual who is entitled to a share in the assets of a deceased person. These may include real estate properties, insurance amounts, bank account holdings, stocks, bonds, shares, etc. As per the inheritance laws of Pakistan, which are based on the Islamic Sharia law, the legal heirs of the deceased can only include the spouse, parents or children.
Feeta.pk has compiled the key highlights of the process, laws and rights of succession in Pakistan to help you navigate through what is otherwise a convoluted affair.
The purpose of a legal heir certificate
Once the death certificate of the deceased has been obtained, only the successors are eligible to apply for a legal heir certificate. The legal heir certificate is a document required for recognizing the legal heirs of a deceased person. It can be used for the following purposes:
- For claiming insurance
- For processing the family pension of the deceased employee
- To receive two such as provident fund, gratuity etc. from the government
- To receive salary arrears of the deceased
The purpose of a succession certificate and how to obtain it
On the other hand, a succession certificate is issued to transfer both movable and immovable properties of the deceased to his / her legal heirs. The letter of administration grants the right to administer the estate of a deceased person.
Any one of the legal heirs can apply for a succession certificate. The Succession Act 1925 governs all the procedures related to succession certificates in Pakistan. In case of multiple legal heirs, each party can apply for the succession certificate individually and the court can issue it to them according to their share in the property. Another alternative is that all legal heirs can file a joint application in favor of one legal heir who can distribute the property among other heirs afterward.
The Government of Pakistan also introduced a secure online portal in 2021 that provides letters of administration and succession certificates within 15 days, as opposed to the previous timeframe of 2-7 years. This was developed by the Succession Facilitation Units of the National Database Restoration Authority (NADRA) with the aim of removing any unnecessary delays and hassle during the process.
This is especially an advantage for overseas Pakistanis, who would not be required to make an appearance at courts anymore to receive the succession certificate.
The digital certificate has several security features, including a real-time verification facility. The process to obtain it can be completed in just a few, simple steps:
- Initiating the application:
The successor has to provide his / her national identity number and the death certificate of the deceased. - Recognizing the legal heirs and assets:
The applicant has to give relevant details of the legal heir (s) along with information related to the deceased’s moveable and immovable properties. - Verifying the legal heirs:
All the legal heirs mentioned in the application have to visit Nadra’s registration center for biometric verification. - Advertising:
NADRA will publish a notice in newspapers to ensure there is no one who has any objections against that particular application. - Printing & delivery:
If no opposition comes forward within 14 days of publication, the letter of administration/succession certificate will be issued to the applicant.
It is important to note, however, that each province has its own conditions for which documents are necessary for initiating the succession certificate procedure.
Laws of inheritance in Pakistan
There are two laws that protect the rights of inheritance in Pakistan:
- The Muslim Family Laws Ordinance (1961), gives effect to certain recommendations of the commission on marriage and family laws.
- The West Pakistan Muslim Personal Law (1962), consolidates and amends the provisions of the application of Muslim Personal Law (Shariat).
A few additional things to note are:
- There is no inheritance tax in Pakistan.
- The last domicile of the deceased also dictates the division of inherited property.
- If the deceased gifted a property to another party in their lifetime, it cannot be contested in court after their death.
- Legal heirs can only distribute properties if the outstanding debts of the deceased have been settled.
- If a legal heir passes away before the distribution of inheritance, their share will be divided among the other heirs.
- It is highly advised to hire a lawyer for the distribution of inherited property.
Women’s rights of inheritance in Pakistan
There are many cases where female heirs, especially in Pakistan’s rural areas, lose out on their share of inheritance in favor of male family members. This is mostly due to their lack of awareness of women’s legal property rights. The Enforcement of Women’s Property Rights Bill was passed in 2020 to ensure their rightful inheritance.
According to Section 498A of the Prevention of Anti-Women Practices Act (2011), it has also been termed illegal to deprive women of their inheritance in any manner. Any violation of this act will be punished with imprisonment of 5-10 years or with a fine of Rs. 1 million or both.
The inheritance rights of women have been outlined below:
- The wife of the deceased will receive 1 / 8th of the inherited property if she has children. If she does not have any children, she will own 1 / 4th.
- The mother of the deceased will 1 / 6th of her son’s property. If the deceased had no parents or children though, the mother will receive 2 / 3rd.
- If a female has one or more brothers, she will receive half of their share after their father’s death.
These can still vary in cases of special circumstances.
For more details on property inheritance, visit Feeta blogs.
Key Property Inheritance Principles
- Published in International, property, Property Laws, Real Estate, Real Estate Guide, Real Estate News, Real Estate Trends, Zillow
Difference Between Buyer’s Market and Seller’s Market
Everyone wants the best deal on a new home, but it’s not always easy. After the COVID-19 pandemic, prospective homeowners found it difficult to answer the question, “Why are houses so expensive nowadays?”.
To save on a new home and avoid spending too much on the mortgage, wise homebuyers try to time their purchases around the buyer’s markets.
When buying a home, it is important to know the difference between the buyer’s markets and the seller’s markets. Let’s find out more with this blog.
What Is A Buying Market?
Buyers ’markets occur when more homes are sold than buyers are available. It means that more homes are listed for sale than there are buyers. A buyer’s market often refers to the state of a market where there is relatively more inventory than demand.
Lower home prices are an indicator of a buyer’s market. A seller’s home will often sell around the list price or even less in the buyer’s market. You can’t raise your asking price much without getting buyers to look at comparable homes offered by other vendors in your neighborhood.
Due to the volume of competition, sellers are at a disadvantage. Many sellers decide to accept a lower selling price instead of waiting for the right buyer to come.
Apparently longer than average time on the market is another sign of the buyer’s market. It’s probably a buyer’s marketplace if the counters aren’t replaced by sold-out signs as you drive through your neighborhood. There is little chance of seeing a bidding war on a house on the market. With so many homes available, buyers are unlikely to spend more than the asking price.
What is a Vendor Market?
During the seller’s market, the number of buyers cancels out the number of available homes on the market or when there are more buyers than available homes. A single property often attracts multiple buyers, resulting in a bidding war. Selling your home in the seller’s marketplace can be a great choice because you can get a higher selling price than your list price, or at least more than your lowest price (the lowest price you’re willing to accept for your home).
Be aware of the seller’s advantage when you buy a home in the seller’s market. The advantage of getting a lower sale price on a property that other buyers are interested in is unlikely if other buyers are also interested.
An offer made by a competing buyer could cost you the opportunity to purchase the property. The seller’s market is sometimes referred to as a tenant market because sometimes prospective buyers have to keep renting until they can raise their down payment and compete with other buyers.
The market for Buyers or Sellers? Find Out With These 4 Tips
The market of a buyer or seller can be determined without being an expert in real estate. The easiest way to tell is usually by looking at current and recently sold listings.
The buyer’s market has the following characteristics
- Home sales are slowing
- The homes are sold for less than the list price
- The domestic price index is declining
- There are many homes available for sale
The seller’s market has the following characteristics
- Houses are selling fast
- The home sells at or above the list price
- The price of homes is rising
- There are not many homes for sale
Some Tips for Buyers
When there is limited housing and many buyers are interested, time is of the essence.
- The seller’s market is a great time to act fast if you find your dream home. Those who are hesitant about a house they want to buy may find that it is no longer available until the time they are ready to negotiate. Getting pre-approved for a loan before you need it will secure financing.
- Make sure you know you’re at a disadvantage before you bid. There is no need to press for specific closing dates, concessions or contingencies in the vendor market. Make sure you focus on what is important to you. Make sure you think twice about the terms you want to be written into the contract. Make a full cash offer, if possible. Because cash buyers do not have to deal with financial problems, sellers prefer them.
- Having patience is key when you continue to lose the homes you are interested in. Don’t be discouraged if you continue to lose homes you are interested in. Frustrated buyers end up suffering in the seller market. Many inexperienced bidders engage in supply wars to get the home they want, even if the home is not worth much. That’s not a good idea.
- If you are tired of losing, you may end up making an offer for a home that you would not normally be interested in. Property ownership is an investment and often a 30-year commitment. Don’t get sucked into a cheap house. You’d better wait until the market cools down before you start your home search.
Some Tips for Sellers
To increase interest in your property in the seller’s market, you will need to compete with other sellers.
- Before you market or display your property, make sure your home is clean and organized and in good condition.
- The price of a home tends to rise in the seller’s market, but the price of your home is still relatively helpful. You are more likely to attract buyers if you lower your asking price slightly below the fair market value. It is common for sellers to list their homes slightly below their estimated value to encourage bidding wars.
- Examine offers carefully: In a seller’s market, it is even more important to consider offers carefully. In their search for the highest bid, sellers often ignore the financial strength of the buyer. If buyers say they will pay a certain amount, that doesn’t automatically mean they can get the money. The appraised value of your home cannot be financed beyond that.
- Your last resort should be to accept an unrealistic offer and then have to resell your home when the deal hits. Buyers will have more power during a negotiation when your house is on the market longer.
- Make sure that every buyer who requires financing is pre-approved for a loan. When buyers receive pre-approval, their credit and finance are checked, ensuring that they can get a loan for a specific amount. The prerequisite, however, is only an estimate of a buyer’s finances.
- Observe contingencies: Also be aware of offers that include contingencies. In the event that certain conditions are not met, buyers may withdraw from sales contracts, including mortgage contingencies, home sales contingencies, appraisal contingencies and inspection contingencies.
Summary
Knowing where the market stands is helpful when buying or selling property. There is less competition for buyers in the buyer’s market when there are many homes available. On the other hand, a seller wants to list his house during the seller’s market when there are fewer properties for sale and a high number of interested buyers.
It is still important to hire a property, regardless of the market conditions in your area. A real estate agent can put you ahead of your competition, regardless of market conditions.
Choosing the right time to buy a home can be a major challenge. In the seller’s marketplace, you will notice that homes disappear almost immediately after being listed. To avoid losing what could be your dream home, you should be pre-approved as soon as possible instead of waiting until the last minute.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Architecture and Interior Design.
Difference Between Buyer’s Market and Seller’s Market
- Published in International, Investment, property, Real Estate, Real Estate Guide, sellers
5 Tips To Increase Rental Property And Maximize Income
The appearance and functionality of your rental property have a direct correlation to the rental income it can produce. By investing in the right improvements, you can charge your tenants more. This can result in higher rental income in the long run.
However, there is a fine line between improvements that allow you to increase rental income and those that are unnecessary or superfluous. You need to determine who is who so that you don’t end up paying for expensive renovations that do nothing to your rental property.
Here are five simple but effective improvements that can increase your property value and, eventually, enable you to earn more rental income:
1. Improve The Exterior Of Your Property
The exterior of your property is very visible, and how it looks can create an impression. You find it difficult to attract tenants and encourage them to live on your property if your exterior looks poorly maintained.
One of the easiest ways to enhance the value of your rental property is to take care of your exterior. As a landlord, you should put in the time and effort to make sure your exterior is in pristine condition. You can achieve this goal by:
Pressure to wash your exteriors:
Hire professionals to take advantage of their press wash services to remove dirt, dust and other debris from your exterior. Pressure washing also removes mold, keeping your rental farm cleaner and healthier.
Painting your front door:
The front door attracts the attention of tenants and sets their expectations on what they can see inside the property. Increase their excitement by painting your front door in bold color. If your exterior is painted in nude shades, go for light shades of red, blue, yellow or orange for your door.
Pay attention to the landscape:
Check the general condition of your landscape and remove weeds and dead branches. If your outdoor space allows, you can plant more flowers and invest in a water feature, such as a pond or fountain.
2. Refresh The Bathroom
How the bathroom looks and works can significantly affect a person’s mood throughout the day. Can you start the day in a positive mood if the bathroom looks dirty? How can you enjoy your bath or shower if the bathroom lacks essential amenities? Tenants will probably feel the same way, so make sure to upgrade your bathroom.
You don’t need to break the bank just to improve your bathroom. Here are some cheap bathroom renovation ideas that will definitely make the space look and feel new:
- Mess up to make the space look bigger and feel cleaner.
- Experiment with bathroom wallpaper.
- Invest in stylish storage, such as an open shelf and the use of wicker baskets.
- Swap expensive floors for affordable materials.
- Raise old bathrooms by adding new paint or upgrading hardware.
3. Work On The Kitchen
Many tenants will choose to pay more, provided they get the most functional and attractive kitchen. In addition to cooking and preparing meals, tenants were more enthusiastic about the kitchen, as here they would entertain guests and even hold parties.
Contrary to popular belief, you don’t need to spend thousands for a successful kitchen renovation. Like the bathroom, there are inexpensive kitchen improvements that can change the overall look of the space, such as:
- Adding artwork to the walls to create focus
- Adding more seating furniture
- Change the lighting fixtures
- Changing your cabinet doors and hardware
- Instead of replacing kitchen floors, paint them with a neutral shade
4. Add New Living Spaces
The more housing your rent has, the higher the rent you can pay your tenants. This will allow you to earn more income in a shorter period of time.
Evaluate the layout of your property and see if it can still support another place to live. For example, if your wolf property has a separate dining room, consider converting it into another bedroom, or if it’s a large room, split it into two bedrooms.
5. Offer an Outdoor Recreation Space
Gone were the days when tenants only entertained guests inside the home. Today, more and more people would choose to hold meetings in outdoor spaces as these offer a change of scenery and a fresher atmosphere.
Another way to increase the value of your rental property is to offer an outdoor recreation space to your tenants. Depending on the space available, you can add a deck, beauty or some outdoor furniture and BBQ. All of these updates are sure to attract tenants and make your rental property more valuable.
Upgrade Your Rental From Today
The housing market worldwide is full of thousands of wolf holdings. Fortunately, there are many ways for yours to stand out, namely by following the tips presented in this article. These tips are enough to make sure your rental property meets modern standards and attracts as many tenants as possible.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
5 Tips To Increase Rental Property And Maximize Income
Guide to Using Hard Loans for Real Estate Investments
If you are looking to invest in real estate but have found that traditional methods of acquiring property are too expensive or inaccessible, hard cash loans might be the answer. These loans provide quick cash for people who need it, and they do not require a lot of paperwork or credit checks.
In addition, the terms of the loan allow borrowers to defer payments if necessary. There is no limit to how many properties can be purchased with these types of loans as long as they are commercial buildings, multi-family homes or completed residential construction projects. Here is a guide on how to best use hard loans for your real estate investment.
Explore Extensively to Get the Best Offer
Before you start looking for a hard money lender, you should be well informed about the current market. You will only find the best deals if you keep your ear to the ground and do not take any valuable information. Looking around for buyers who might require financing is one way to do that.
These people are often willing to pay higher prices for the properties they want if they are given a chance to avoid paying cash. You can also contact commercial real estate and ask them about upcoming deals that could be suitable investments with hard loans.
There are other ways you can explore also. For example, some people like to find properties that need work and fix them before selling them for a profit. Because you are investing your time and energy in the renovations, you will want to find a lender who can work with you to defer payments until your investment begins to pay off.
Find the Right Lender
Formal lenders such as banks and credit societies usually require strict qualifications before approving applications for loans. With hard money lenders, it’s a different story.
You will need to make sure that you find a lender who can work with you and your specific situation, but it should not be difficult if you have the right information.
For example, some lenders have minimum requirements for down payments or credit scores that they require their borrowers to meet before approving an application. With a little research, you can find lenders who are willing to work with your financial status.
Explore Extensively the Interest Rates
There are reliable online websites that you can target and get all the information you need from the available lenders. They expose you to a Directory of hard money lenders and individual reviews. It helps you decide on which direction to go when choosing a lender. The lower the rate, the better your chances of profiting from your investment within a short period of time.
Repay Loans on time
As an investor, it is essential to be accountable for your financial commitments. Your lender will expect you to repay the loan before the agreed deadline and not a day later.
If you fail to do so, you may have to face some consequences, which include steep interest rates or even a requirement for immediate payment. As a property investor, it is important to be aware of the repayment terms and always make sure that you meet those conditions for your benefit.
Find the Right Property
There are many ways that hard cash loans can be used in real estate investing. One of the best choices is to buy properties before they were listed for sale on the market, so you won’t have to compete against other potential buyers when you’re trying to make a deal.
For example, you can use these loans to buy another real estate investor who is not using their property to its full potential so that you can renovate the building and sell it for a higher value. You can also use hard loans to buy finished multi-family homes before putting them on the market so that you have a place to live while you wait for the value of the property to increase.
Learn More About Contract Terms
You need to get all the information you can about the available offers. You may not have much time to invest in your research, but you should never rush through this step for fear of running out of financial choices.
This is one of the most crucial aspects of real estate investing, so don’t miss it just because it takes a little more time and energy to get through.
Getting a loan from a reliable hard money lender is one of the best choices you have when it comes to financing your real estate investments.
You don’t have to hand in an application at your local bank just to find out that you are not eligible to get the type of loans you need. Instead, you can contact a hard money company without any problem working with investors who are not qualified to apply for traditional financing.
Pay attention to Fees when using Hard Loans
Some people think that using hard loans is a great way to avoid paying higher prices on fees from banks and other loan providers. However, this may not always be the case because some hard money lenders pay high interest rates to compensate for the lack of paper involved.
Also, you should be willing to pay closing costs whenever you buy property because such hard money lenders make their profits.
There are many reasons why people choose to use hard loans to buy real estate. If your finances don’t meet the qualifications at your bank, but you still want to invest in property, finding a hard money lender may be the answer.
The key is to research and find the best offer that meets your needs. By making small adjustments to how you use these loans, you can make them an effective tool to expand your real estate portfolio.
If you need money for your real estate but do not qualify at the bank or other lending providers, hard cash loans may be your best choice.
Hard money lenders are also better than banks when it comes to rates and repayment. As you research which lender is suitable for what property investment, there should be no problems with this form of financing.
Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.
Guide to Using Hard Loans for Real Estate Investments
How NFTs Could Transform Property Investments
The sale of virtual lands is taking place every day in Decentraland, but a recent purchase by property investors has taken virtual land investment to a whole new level. According to Yahoo Finance, 259 plots or 16 acres of digital land purchased from Republic Realm cost more than $ 900,000, the most expensive purchase of NFT land ever. NFTs, also known as non-fungible tokens, have been a hot financial investment topic in the art industry. However, in recent months NFTs have become increasingly popular in the real estate investment sector. The ability to buy and sell property on blockchain-based platforms such as Cryptovoxels and Decentraland indicates that blockchain is reforming the real estate market. If you’re looking to invest in this trend of blockchain-based real estate, read on to learn how NFTs could transform a property investment.
Increase In Virtual Property
Strangely, many investors invest large sums of money in virtual real estate. As the name suggests, virtual properties are untouchable plots of land or plots of land that exist only in a blockchain. It is worth noting that the price of virtual land or fields depends on how much one is willing to spend. For example, Mars House, a digital property sold for $ 500,000 on an NFT marketplace.
A few months later, investors completed virtual land sales worth $ 3.5 million in The Sandbox, a metaverse on the blockchain. If you’re like a lot of people, you may be wondering why to invest in an NFT farm. For many investors, the uniqueness and ease of property transfer from the seller to the buyer provide added value to their investment.
NFT Mortgages
In addition to making virtual real estate a reality, NFTs could change the mortgage industry by improving the home loan process. The current regime of getting mortgages is expensive and labor intensive unless you are lucky enough to find a mortgage lender committed to providing excellent customer service. According to The Home Loan Expert, a customer-centric mortgage loan process should be streamlined from start to finish. This means that the lender has the entire home loan process under one roof. This way they can close your home loan quickly and efficiently.
Because the real estate sector encompasses NFT, lending on home loans could be less stressful. This is because tokenizing property rights facilitates the process of managing and trading homes. Ideally, you can buy a property from NFT and lend against it immediately at a 2.4% interest rate through products like Defi and TradeFi.
Promotes Fractional Property
As an investor, you can use NFTs to tokenize your physical property to create a representation of ownership in the digital space. Doing so allows you to sell part of your property to a small or large group of investors. Because NFTs are sold in a decentralized marketplace, you need to issue tokens to real estate buyers. If investors choose to hold the notes, they may receive rental income or profits shared based on a valuable appreciation of a property sale. Ideally, NFTs could pave the way for many investors to consider fractional ownership in the real estate market.
NFTs or non-fungible tokens have become popular in the real estate industry because they allow investors to buy or sell digital properties. This new blockchain-based technology trend will affect the real estate investment scenario by promoting the rise of virtual real estate. Industry experts also claim that it will encourage fractional ownership, and make mortgage lending easier.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
How NFTs Could Transform Property Investments
3 Ways Property Management Can Increase Profit
Having extra property that you can rent is probably a great source of passive income. In fact, statistics show that the demand for rental properties continues to grow every year, making it a great opportunity for potential landlords. However, owning a rental property requires commitment, especially when it comes to your time and effort. The hassle of owning a rental property even makes it seem like a second job.
So if you have property of your own and you have the time and effort to strive, you can always choose to manage it yourself, especially when you live nearby. However, if you do not have the luxury of time, then it is best to resort to those who offer property management. (1)
Not only will they have a professional manager, especially those who offer all inclusive property management fees and take a lot of stress and hassle off your shoulders, but they can also ensure that your property looks aesthetically appealing to the point that it will always attract potential tenants, bringing in a lot of income.
Additionally, here are three ways how property management can increase your profit:
1. Attract high quality tenants
If you are a first-time landlord, remember that tenant screening is not only a long process but it is also complicated. Sure, you don’t want to end up with a bad tenant — those who pay their rent late or damage your property.
Fortunately, by partnering with a property manager, you will be assured that the tenants residing in your property will be reliable and controlled, such as long-term rent, timely payment of rent, little or no wear and tear of the property. , and causes less trouble to their neighbors and to yourself, inviting a steady stream of income on your part. (2)
Since a reputable real estate management company has been in the industry for a long time, then they can help you with the background check of any potential tenants. Also, if you hand over the rental process to a property manager, then you can avoid any possible rental scams, helping you avoid losing money in the process.
2. Helps you stay on the right side of the law
There are many landlord laws that can be complicated on your part, especially if you know nothing about the specific law. Unfortunately, having little knowledge of the law does not free you from them. Failure to do so can result in large fines.
However, having a property manager — since they are already experts in this field — can help you save your money. For example, if your property manager can save you the trouble of going through one eviction due to the violation of certain laws implemented in your state, then you have already saved money that can be spent on your property to attract more tenants by inviting. more income on your part. (3)
3. Always make sure your property is free
There are many factors that influence why your property is vacant for too long. First, you may have to make the necessary adjustments and renovations when the time comes that a tenant wants to relocate. This can be a timely — and also costly — force on your part because you will have to renovate your place. to suit the needs of any tenant. But a good property manager will prevent these factors. First, your chosen property manager can do the following:
- Highlight the property: A good property manager knows as picei or apply the latest trends and cosmetic improvements that need to be made to attract tenants to your property, maximizing your income.
- Set the market rent: More often than not, tenants have not rented property because of its rent – it can be too expensive. But a professional property manager will be able to determine the right price, taking into account the neighborhood in which your property is located as well as the demand. Knowing these decision factors only comes if you are smart in the local real estate market.
- Market your property effectively: Because they have experience in the field, it is expected that a professional property manager has come up with a lot of claims. This means they know exactly what to say and where to place these advertisements to attract potential tenants. Also, because they have partnered with advertising companies in the past, they can also negotiate a better rate for your ads, helping you save money. (2)
Final words
If you have a rental property or you are an aspiring property investor and you want the property to become a source of passive income, then one of the best decisions you can make is to hire a property owner. This is especially true if you don’t have the luxury of time but want to make something out of your property. A good property management company gives you freedom and less stress on your part, which may be the definition of passive income.
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