Why Software Engineers Should Invest in Real Estate?
You cut your teeth as an engineer, developing everything from simple applications to complex distributed systems used by millions of users. Maybe you work for one of the FANG companies (Facebook, Amazon, Netflix, Google), and make six figures. You’ve been thinking about investing in real estate for some time, but you’ve held off because you believe there’s a high barrier to entry. Software is your world. You don’t have extensive knowledge of real estate.
What’s more, you work 60+ hours a week, and because of the amount of work, you don’t have time to study all the various ways of achieving financial freedom. So, you end up investing in stocks or crypto – and here lies a waste of capital allocation for software engineers.
Let’s face it: You didn’t land where you are today because you’re incapable of learning something new and complex. In fact, your expertise, attention to detail, and higher-than-average income make you the perfect candidate for real estate investing.
I decided to write this article to help techies like myself achieve financial freedom through real estate investing. And not only techies. This article is definitely one to read if you’re an engineer, product manager, designer, investment banker, sales manager, or another high-income earner.
Are you playing baseball in golden handcuffs?
What do baseball and golden handcuffs have to do with software engineers getting into real estate? You may not realize it, but most high-income earners like you are in a very sticky situation.
Employees stay with the same company for a variety of reasons. Exciting work. Thrilling challenges. Industry prestige. But of course, the main reasons they stay are the benefits: excellent base salary, stock, health insurance, and matching retirement plans.
All these exceptional benefits are “golden handcuffs.” They’re the juicy perks that encourage high-income employees to stay right where they are instead of seeking new opportunities.
Here’s where software engineers, golden handcuffs, and baseball players collide…
In large tech companies, software engineers can count on multiplying their total compensation by 1.3 every time they’re promoted to the next level. Let’s say you work for one of the FANG companies where compensation is pretty high:
- A junior engineer (SDE 1, E3, fresh grad) makes a $125K base salary + $100K in stock for total compensation of $225K per year.
- A mid-level engineer with 3-4 years experience (SDE II, E4), makes about $165K+ base salary + 130K or more in stock.
- A senior-level engineer (SDE, E5, 5+ years of experience) can easily reach $420K, $200K from base salary.
- Then there are E6s, who constitute approximately 10% of the engineers at FANG companies. E6s earn up to $550K in total compensation. About 5% of E6 Facebook engineers make $700K-$1MM+.
Their salary increases sublinearly by about 10% from one level to the next. Stocks rise superlinearly about 50% from level to level. Now, the stocks that these engineers hold have also increased in value by about 8-10% annually over the last few years. As a result, they contribute to the $700K-$1MM high earners for folks in their late 20s and early 30s.
Don’t get me wrong, being an E6 at Facebook or Amazon is tough. It takes a lot of skill to reach this level. Most E6s have natural technical talent and graduated at the top of their class. These are true “high performers.”
But if you’re an E6 who’s coding, mentoring, providing technical vision and strategy, and leading your entire team’s technical charter – you end up working 60+ hours per week. Can you continue to meet such high demands for the next 5, 10, 15 years?
The younger techs can.
Paul Peebles from Old Capital calls this phenomenon the “baseball player effect.” Fresh tech grads earn almost the same amount of money as lower league baseball players. Plus, their careers peak in the mid-30s. After that, they compete with the “fresh blood” who eagerly churn out 60+ hour weeks without issue.
It’s the same for software engineers. Once you’re in the mid-30s, you hit the peak in your career. Then, your career and compensation stop growing at the same rate as before, eventually coming to a standstill.
You have an exact window of time to distribute your resources wisely so you can afford early retirement and comfortable life without depending on an employer.
When it comes to investing, time is of the essence.
If you work and live in California, like most techies, you pay the government up to 50% of your income. As a result, even if you make $800K a year, you’re left with only $400K.
Most California-based techies live in shiny houses, costing $2MM on average. With a 20% down payment, you then pay $10K for the monthly mortgage. You’re now left with $23K per month for all other expenses.
Now add the family, kids, expensive cars, and vacation to the equation. All of this can cost up to $10K per month, leaving you with only about $150K per year to invest. Talk about lackluster!
And what if you only earn $500K annually? If your career and income peak in your mid-30s, you’ll need to allocate your funds wisely (while you still can) in the growth stage.
But here we are again: Working 60+ hours per week with no time to explore investment options. Let’s talk about how to change that.
Real Estate vs. Stocks
We can’t go into a head-to-head comparison of real estate vs. stocks because it’s like comparing apples to oranges. The factors that affect stocks or real estate values and returns are very distinct.
But, here are some thoughts I’d like to share with you on this topic:
It’s safe to say that most techies invest in the stock market because they think it doesn’t require that much research or money. When you buy stocks, you own a piece of that company. Consequently, you make money with value appreciation and dividends.
Then there’s real estate investing…
There’s a massive misconception that real estate investing requires a substantial initial investment and tons of time researching the market.
However, the ways you make ROI on stocks vs. real estate are entirely different. That’s why portfolio diversification is paramount.
With real estate, you acquire physical property. One of the most popular and sustainable ways to make money from real estate is by collecting rent. Another way is through appreciation – capitalizing on increased property value. Lastly, you can pay down your loan principal.
The advantage of real estate is that it is a tangible, diversifiable asset that you can control. In addition, real estate investing offers you some substantial tax benefits. Despite not having similar liquidity as the stock market, it provides long-term cash flow and passive income to help you retire early.
Real estate returns vs. stocks
Most syndications offer 6-8% cash on cash return and 10-12% total annualized return. It’s certainly better than the stock market, period. Yes, you could argue that real estate can take a hit during economic recessions. But this applies to the stock market too.
Here is a comparison of the total returns of the SPDR S&P 500 ETF (SPY) and the Vanguard Real Estate ETF Total Return (VNQ) for the last 17 years:
Image by Sabrina Jiang © Investopedia 2020
Should you syndicate your own deal?
Real estate syndication consists of two parties. One group is the syndicators, who do all the work for you, such as finding and evaluating deals, getting the property under contract, hiring and overseeing the property management company, executing the business plan, and finally disposing of the property. The other group is the passive investors – they don’t do any work but invest $50K, $100K, or $150K. They do this so they can buy a large piece of real estate that they cannot buy otherwise individually. Syndicators make extra due to their sweat equity.
There are 2 types of people out there. Knowing which one you are will help you decide if being a real estate syndicator is right for you:
- First, there are high-income earners who believe they don’t have the time or interest to invest in real estate syndication. While that may be true, it’s problematic because not investing in real estate is a waste of capital allocation.
- Second, there are low-income earners who believe syndication is the way out of their situation. This is problematic because the quality of syndication is not that high.
I am a real estate syndicator myself and have invested in more than 1,500 units. I’m also a lead syndicator on two deals totaling 580 units. Let’s explore the pros and cons of becoming a real estate syndicator.
Pros and cons of being a real estate syndicator
Have you been visualizing yourself traveling the world while the income keeps rolling in from your investments? That might be your goal, but here are other benefits of real estate syndication:
Pros
- Steady wealth building. Although it often starts at a slow pace ($50K per year), once you buy your 400 and 500-unit properties, you may be able to replace your current income in as little as 3-4 years. However, these initial years do require a fair amount of work.
- Invaluable skills. The experience and skills gained by syndicating your deals are hard to acquire elsewhere. You learn asset management, how to stay in the game, and how to build a strong network of multifamily vendors, such as brokers and lenders. Even if you decide to buy multifamily independently without doing syndication, these skills are invaluable. However, make sure you enjoy the day-to-day of being a real estate syndicator.
- Great retirement is more than possible. When you commit to syndication and managing your assets, early retirement for your high-income lifestyle is within reach and sustainable.
Before you make a decision, here is a list of reasons why syndicating while having a high-income job is not necessarily worth it:
Cons
- Initial ROI vs. time spent. A sponsorship team makes around $1K per unit a year. The cash on cash ratio vs. property appreciation ratio is approximately 2:1. For example, if you purchase a 150-unit multifamily property, the sponsorship team earns around $150K per year. So, if you have 3 people on the team, you each end up with $50K per year, including appreciation. Without appreciation (only cash flow and asset management fees), it’s $33K per person annually. Those looking to replace their after-tax income from a W2 job will need 1,000 units to make $1M/3 = $333K a year in a 3-person sponsorship team.
- Risk and responsibility. Imagine being responsible for that much equity under management while only making $333K per year. Is it truly worth it? Take a moment to consider this before making a decision!
The bottom line: Real estate syndication is not rocket science. It’s mostly hard work, a little bit of research, and 5th-grade spreadsheet skills.
How to passively invest in real estate
If you’re a high-income earner and don’t have enough time to do research, passively investing with real estate syndication is your way to go.
It surprises me that while syndication provides an excellent resource for passive income, I’ve hardly met any FANG engineers in real estate syndication mentoring groups. It’s unfortunate because real estate syndication offers high-income techies an opportunity to diversify their portfolios and enjoy early retirement.
You don’t have to “work your way up” or spend a lot of time becoming a syndicator or general partner yourself. Passively invest in syndications!
Here’s an example of what that looks like:
I work in the tech world (engineering manager at Lyft). A few of my friends invest in my real estate deals. I take care of their tax filings, so I may have to call them from time to time.
While I’m doing all the paperwork, they’re out in Hawaii just surfing and enjoying life. Sometimes I get jealous. Why am I doing all this for them while they’re not working for any of the money that’s coming in?
That’s the power of passive investment in real estate. The return on your time equals infinity – especially if you have someone like myself doing the work for you.
A roadmap for software engineers looking to diversify into real estate
Diversifying your portfolio into real estate doesn’t have to be complicated. Here’s what to do:
- Dive to blogs and podcasts to learn about real estate syndication. I’ve put together a list of real estate investing podcasts and a list of real estate syndication blogs.
- Buy your first rental property. Use it as a learning curve before investing in syndication. Once you experience being a landlord you’ll value all the effort that goes into keeping a rental property operating smoothly.
- Buy a house-hacking home. It will help you save a lot of money on mortgage payments and invest it into real estate. If your spouse doesn’t want to share the house, go for something that doesn’t cost $2MM.
- Passively invest in syndication, but check the syndicator’s background and track record. With Cash Flow Portal, we take care of this for you. On our platform, you can easily talk to them, check their references – even connect to meet for coffee! Make sure they are responsive, confident, and experienced. Check online reviews of the syndicator.
- Network with syndicators. Cash Flow Portal offers a simple way to connect with syndicators, vet them, and passively invest in their deals.
Author Bio
Perry Zheng is the founder and CEO of Cash Flow Portal, a real estate syndication software. He lives in Seattle, where he owns six single-family properties. Perry started real estate syndication three years ago. Today, he has more than 1500 units, raised over $16M, and is a lead syndicator on two deals totaling 580 units.
His goal is to help other syndicators succeed and overcome common challenges like raising capital and finding deals even while having full-time jobs. Perry is also a full-time engineering manager at Lyft. He worked at Twitter and Amazon before that.
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Why Software Engineers Should Invest in Real Estate?
Abdullah City Islamabad: Details, Location, Features
Overview
Abdullah City is a modern housing society by Aziz builders. This project intends to provide quality build standards and ultimate lifestyle at the best prices. Abdullah City resides on Chakri Road Islamabad, near the Chakri Interchange.
Introduction
Abdullah city offers affordable residential and commercial property as well as premier farmhouses featuring the latest facilities. The efficient development plan, high-end amenities, and reasonable prices are attracting more and more attention from investors.
Abdullah City features state-of-the-art modern development. Undoubtedly, a well-maintained lifestyle is equally beneficial for families and investors alike. Society fulfills the demands of high standard residence in the twin cities. The dependable town planning and development skills of Aziz Builders will make it a desirable housing project.
Abdullah City Location
The locality is a vital aspect of any housing project; Abdullah City offers the best location in Rawalpindi. It resides on the famous Ghous-e-Azam road with easy access from multiple places like:
- Ring Road
- Thalian Interchange
- Chakri
- CPEC route
Abdullah city possesses an ideal location with plenty of landscape and surrounding nature. It holds many prime spots of the twin cities in proximity. However, Chakri Interchange is the most convenient route to reach Abdullah City.
Following is the location map of Abdullah City for better understanding:
Total Land Area
Abdullah City is a vast housing project that spans over 35,000 Kanal. Society has already acquired the majority of the land and development continues. The swift development pace indicates that society will get NOC from RDA soon.
Landmarks Surrounding Abdullah City
Abdullah City Islamabad is located near many essential landmarks, and you can reach them in minutes.
- Islamabad International Airport is present in its vicinity.
- Furthermore, you will find the NDU campus of Fatima Jinnah University close to society.
- More landmarks include Motorway, Kalma Chowk, and Thalian Interchange.
Ideal proximity makes this project a perfect place to live and an excellent choice for future investments.
Abdullah City Islamabad Accessibility
Abdullah City provides easy accessibility from and to multiple famous sites of Rawalpindi/Islamabad:
- Lahore-Islamabad M-2 Motorway is just 15-20 minutes away from Abdullah City.
- Kalma Chowk is 25 minutes drive from society.
- It hardly takes 5 minutes to reach Chakri Interchange from Motorway.
- Islamabad International Airport is reachable in35-40 minutes.
- Bahria Town is located 1 hr away from Abdullah City.
- Main Islamabad and Rawalpindi City are approximately 40 minutes’ drive from the location.
Developers
Aziz builders are developing this incredible real estate project. They have extensive past projects and positive feedback. Generally, Aziz builders provide land development services, town planning, and colony organization services for the past decade. They believe in commitment, on-time project delivery, and quality development.
Aziz Builders and Abdullah Marketing have joined hands in developing this iconic project named Abdullah City. The values of Aziz Builders depict the bright future of Abdullah City Islamabad.
Abdullah City Development Status
Abdullah City Islamabad is currently under development, but construction continues at a swift pace throughout society. The infrastructure development has entered the final stage. Moreover, the main gas pipeline installation is underway.
Have a look at the following pictures to get an idea about the development status of Abdullah City Islamabad:
Legal Status
Abdullah City is a well-planned and organized housing society. However, its NOC is still under processing by the Rawalpindi Development Authority. According to RDA, the society faces some allegations from Tehsil Municipal Authority (TMA).
Customers should confirm the legal status of this society before investing anything. Management of Abdullah City is making efforts to get the NOC and it will be granted soon.
Amenities
Abdullah City is an all-inclusive project with upscale amenities and features offered to the residents. This society aims to raise the standards of living by providing futuristic features and modern infrastructure.
To put it simply, customers will have all the desired facilities that make it ideal for living and investing. The planning, designing, and developments are according to international standards. Moreover, high-end facilitation and dependable security make it an excellent choice for families!
Here are the amenities of Abdullah City:
Educational Institutes
Society plans to set up primary and secondary education institutes with highly skilled educationalists for quality education. Libraries, playgrounds, computer labs, and laboratories are a part of all Schools and colleges. Many leading universities are located within the vicinity of Abdullah City. High-quality education and extracurricular activities will ensure the bright future of children, and ultimately, Pakistan.
Healthcare
Proper healthcare services are necessary for a peaceful life. Abdullah City provides healthcare centers with up-to-date medical equipment and highly trained doctors. Residents will feel well cared for and find hospitals within the society. Abdullah City will host a premium healthcare facility.
Commercial Areas
Commercial areas developed at different spots in Abdullah City will fulfill the everyday necessities of residents. Shopping centers, malls, food markets, and more facilities will be available in all commercial zones. In short, residents will find everything from designers clothes to grocery and home décor within the society.
Mosques
Residents can improve their relations with the Almighty at mosques and across society. Moreover, religious centers ensure easy religious practice, spirituality, and closure to God.
Garbage Management
Modern civil infrastructure and services ensure proper collection and disposal of garbage to maintain beauty. Furthermore, trained maintenance staff and the latest equipment ensure clean roads, streets, and boulevards. Placement of Garbage bins outside streets, and garbage disposal before piling up or becoming visible.
Dependable Security
A comprehensive security system will guarantee the safety of the residents and an overall peaceful atmosphere. Society provides security through 24/7 CCTV surveillance and highly trained security personnel on patrolling within society premises. In addition to this, Abdullah City features well-invigilated entry and exit gates.
Maintenance Services
Abdullah City Islamabad features an individual maintenance facility available 24/7 to resolve petty matters for the residents. Maintenance teams always show up on time and know solutions to the problems. Abdullah City Maintenance Service Wing is dependable and charges only for material replacements.
Leisure
Abdullah City management understands the value of leisure in life and offers plenty of facilities to fulfill it.
Following leisure facilities are available at Abdullah City:
Parks and Zoo
Multiple parks and a zoo is an entertainment and picnic point for residents. Animal exhibits at different spots featuring different animals like dogs to reindeers and cougars to lions.
Restaurants
Dining is an essential part of the Pakistani lifestyle. Restaurants featuring different cuisines will be available for dining out, be it a family meal, buddies hang out, or solo food love. These food spots will cater to all needs.
The Spa
An exclusive day resort; specifically built to relieve the stress and anxiety of everyday life. Residents can get a day off, relax and get premium spa services from professional staff. Everything needed for stress relief is a part of this day spa.
State-of-the-Art Infrastructure
Dedicated Grid Station
Power outage is a big issue in Pakistan and causes nuisance for people. To ensure an undisrupted power supply, a dedicated grid station will be part of Abdullah City. Society aims to become a load-shedding free zone in the twin cities.
Carpeted Road Network
Road networks are the backbone of a residential project. Even the smallest of problems with roads can cause inconvenience for hundreds of people. Abdullah City Islamabad ensures smooth traffic flow through a sought out road structure. Modern road infrastructure provides easy accessibility to all parts of society.
Footpaths are an integral part of road networks in an area. Abdullah city features footpaths along all the roads in the society to make the strolls easier and much more enjoyable. Residents can conveniently walk for pleasure or getting necessities from the vicinity markets.
Environment Sustainability at Abdullah City Islamabad
The environment is an essential factor for a healthy life. Abdullah City commits to providing a better environment for residents. Plentiful open areas, parks, and tree lines on the roads will ensure a green surrounding.
Abdullah City Islamabad Master Plan
Abdullah City is a well-planned society getting famous with time. It is likely to become a desirable housing scheme for Rawalpindi and Islamabad. The marvelous design interests the top-notch investors and buyers who want to live here. Abdullah city offers a variety of plots in different sectors like residential, commercial, and Farmhouses.
Abdullah City Islamabad Residential Plots
Residential sectors of the society guarantee a high-class residential experience. It follows a similar approach to other leading projects. Commercial centers and other facilities are available in each residential sector for a worry-free life.
The Residential Plots are as follows:
- 5 Marla Plots
- 5 Marla Plots
- 10 Marla Plots
- 20 Marla Plots
Abdullah City Islamabad Residential Homes
This great initiative by Aziz Builders provides pre-constructed homes to the owners. The homes feature quality build and the latest designs, saving you from the hassle of laying the foundation and self-construction. Residents enjoy modern facilities living in these homes.
following are the variations of residential homes:
- 5 Marla Homes
- 10 Marla Homes
- 20 Marla Homes
Commercial Plots at Abdullah City Islamabad
Various commercial plots are also available to meet the needs of businesses and potential investors. Commercial plots are located at different locations within Abdullah City.
Brands and renowned businesses will show keen interest due to the demand of residents. The development of a central commercial hub to cope with all the necessities of life.
Commercial Plots are available in the following categories:
- 3 Marla Commercial
- 8 Marla Commercial
- 20 Marla Commercial
Farmhouses
Abdullah city also offers Farm Houses for residents who want to experience an extraordinary life. Farmhouses occupy the lush green beautiful area of the society with the natural landscape. Customers can enjoy premium amenities and a world-class living environment residing at these farmhouses.
The society offers the following categories in the farmhouse:
- 3 Kanal Farmhouses
- 5 Kanal Farmhouses
- 8 Kanal Farmhouses
- 16 Kanal Farmhouses
You can download the detailed master plan below:
Abdullah City Islamabad Prices
The prices of Abdullah City are affordable to other housing societies, but they will increase in the future. Eventually, Prices will skyrocket as more and more people buy plots here. Abdullah city introduced easy installment plans to facilitate customers. Book the plots by paying booking fees and confirmation Charges.
Here is the payment plan for you to have a look at:
Abdullah City Islamabad Brochure
Down below is the official brochure of Abdullah City, download it to view the detail:
Booking Details
Pay the down payment allocated by the management and book your plots in Abdullah City Islamabad. Moreover, customers need to pay membership charges and confirmation fees to confirm their ownership of the plots.
Looking for a plot in Abdullah City? Contact us today to get your favorite spot effortlessly. Reach out to us via phone and email, submit an inquiry through our website or visit our office! Our agents are ready to assist you!
Discount Offer: Abdullah City offers a flat 10% discount on lump-sum payment for plots.
Conditions
- 10% extra charges apply to Corner and Park Facing plots or homes.
- 15% more charges in case of a Road Facing plot or house.
- For Farmhouses, 10% more amount, on Corner, Park Face, and 15% on Main Boulevard.
Conclusion
As many societies emerge on the map every day, they charge high prices for luxury and modern amenities. However, Abdullah City is an emerging society providing all benefits like other famous societies at affordable rates. Abdullah City offers plots with all the amenities required for a luxurious life at affordable prices. As Abdullah City gets famous, more people will show interest, making it an ideal option for future investments.
Manahil Estate is a real estate agency dealing with the sale and purchase of the property. We can help you get a great deal at Abdullah City. Contact us now to get more information and helpful advice!
Abdullah City Islamabad: Details, Location, Features
- Published in Abdullah City Islamabad Legal Status, Abdullah City Islamabad Location, Abdullah City Islamabad Map, Abdullah City Plot Prices, Facilities of Abdullah City, Housing Schemes, Rawalpindi Housing Schemes, Real Estate, real estate business, real estate investing, real estate marketing, Real Estate News
5 Tips To Wholesaling Real Estate With Technology
If you’ve been around the real estate industry long enough, you might be familiar with the phrase ‘real estate wholesaling.’ It’s one of the best investment options for someone who’s low in cash but still wants to try their luck in this field. However, just like any other business, beginners tend to struggle due to competition and lack of a reliable buyer network.
However, that doesn’t mean you should give up on your dream. There is, of course, a wide range of solutions you could try, and you can always find one that works best in your situation. One of those options is virtual wholesaling.
Technology has become the magic bullet for just about any business-related problem. It most certainly has played a significant role in the growth of the virtual real estate wholesaling market. As a virtual wholesaler, you can do your advertisements on social media and various real estate websites.
So, how can you leverage the benefits of technology and improve your real estate wholesaling project? This article compiles a list of must-read tips for anyone looking to venture into this business.
What is real estate wholesaling?
Before going any further, it’s important that you understand the meaning of real estate wholesaling. Inasmuch as it’s a common phrase, many beginners still don’t get what it really means. It’s simply a short-term strategy employed by investors to generate significant profits within a short period.
You might confuse it with retail wholesaling, but the two aren’t related in any way. When dealing with ordinary goods, a retailer purchases items from a wholesaler in large quantities and then sells them to consumers at a higher price. That’s basically how retailers make profits from their businesses.
However, real estate wholesaling is totally different because, for one, it doesn’t involve bulk goods. Instead, the wholesaler, in this case, signs an agreement with a homeowner looking to sell their home. The wholesaler then looks for potential buyers and assigns the contract to the best candidate available.
It’s worth noting that the goal in real estate wholesaling is to find the right buyer before the contract signed with the original owner expires. In other words, money is only exchanged between the parties involved once a suitable prospective homeowner is found. (1)
In the past, it was necessary for the relevant parties to meet face-to-face before any deal could be made. However, with the advent of technology, most of the tasks can be done using phone call applications. Call Cowboy, for instance, is a modern dialing platform that’ll allow you, the wholesaler, to interact effectively and even hold remote voice meetings with potential buyers.
Tips for virtual real estate wholesaling
Now that you understand what it all means to virtually wholesale houses, how can you use technology to meet your needs? Well, for one, the process isn’t as complicated as you might believe. As mentioned earlier, though, wholesaling real estate is a short-term investment that requires you to find a buyer within the shortest time possible. Therefore, you need to have a working strategy prior to stepping into the market.
Here are a few tips to keep in mind:
Do your research
The first step towards a successful real estate wholesaling project is conducting rigorous research. With the modern real estate market and any business for that matter, the more effort you put into your preparation, the higher your chances of success. Knowing the basics of real estate is one thing, but familiarizing yourself with the whole process of wholesaling is another. (2) So, as a prospective wholesaler, you need to understand how things work.
You can search through the internet for resources that’ll give you vital information necessary for any beginner in the industry. Google and YouTube, for one, are ideal technological platforms that’ll come in handy in this process. Also, in your research, make sure you look into all the legal requirements to avoid unnecessary frustrations in the future.
Of course, reading materials online will be of great help, but it would be wise to consult someone who has seen it all in the market. Remember, real-life experiences give you the exact feel of what to expect.
Find the right marketing techniques
Every business needs proper marketing strategies for it to rise above the competition and generate the desired profits. Real estate wholesaling is no exception in that regard. It’s worth noting that your primary goal in this business is to make profits, and that can only happen when the home is sold. So, the more people you advertise to, the higher your chances of finding a buyer who meets your needs and those of the original homeowner. (3)
So, which are the most effective marketing techniques in today’s environment? The main marketing approach in the modern world of business is social media networking. This is because almost everyone today has access to the internet and is registered to at least one social media platform.
Based on this, it’s safe to say that there’s a huge consumer base for any business on these social sites. You can, therefore, leverage this statistic to grow your outreach and build a network of potential buyers. Facebook, for instance, has an open marketplace where you can post your advertisement and wait for interested parties to contact you. Real estate and auction websites are another set of options that you might want to consider.
It’s worth noting, though, that even with the growth of internet marketing, phone calls and text messaging are still quite effective. Drop Cowboy ringless voicemail and other similar applications, for instance, can boost your outbound marketing by allowing you to deliver pre-recorded messages to the voicemail boxes of your potential buyers. The advantage here is the fact that you can send these marketing messages at any time of the day without being a nuisance to the other party.
Find motivated sellers
Whether you’re a beginner or a seasoned investor, the next step is to find motivated sellers. After all, you’ll need someone who’s willing to sell their house for you to get into business. But how do you go about this phase? Well, unfortunately, this is where many beginners start going wrong and end up being frustrated during their first sale.
Fortunately, nowadays, one can easily access a wide range of information in the real estate industry on their mobile device with a click of a button. You can use such features to your advantage when looking for motivated sellers. Rather than going around looking for listed properties, you can just use online tools to find houses on sale and check important seller data.
Some of the information you’ll be able to access are pre-foreclosure data, any important details about the property, and the seller’s contact information. As such, you can contact the original homeowner if you’re interested in whatever you’ve seen and start making offers.
Do your due diligence
But before you make an offer to the seller, you must make sure that whatever you’ve seen on the pictures meets your needs. As a beginner, it can be quite challenging to evaluate the market value of a given property while keeping in mind the cost of repairs and other expenses since you don’t have enough experience in the field. Therefore, once you’ve determined the location of the property, you can start by researching the average value of similar houses within the area.
Again, you can easily access these important pieces of information online. Just visit a reputable real estate website and make the comparison. There are also many repair estimate tools that you can use to do your calculations, allowing you to come up with a competitive offer to your seller.
If this seems like a difficult task, then your alternative option would be to network with other investors and agents, especially those working within your selected location. Find someone you trust in your network and consult them about the deal and you should go about it. Any professional will advise you according to the current market climate, which should give you an idea of where to start with your offers.
Once you’ve crunched the numbers up, it’s time to present your bid to the seller. Again, make sure whatever you’re offering will cater to all the repairs and still leave enough room for you to make a profit. It’s always recommended that you find a sweet spot somewhere between the highest and lowest possible valuation of the house. Remember, if you go too low, you might scare away the seller, and if you go too high with your bid, you’ll struggle to find a buyer.
Consider building a website
Finding motivated sellers and advertising their houses on social media platforms is a great way to start your real estate wholesaling business. However, once you’ve started gaining popularity, this method may no longer be sustainable. So, what’s your next step once you get to this stage? The best step you can take here is to build a business website where every operation related to your wholesaling venture will take place.
As mentioned, social media platforms are the most visited sites. However, having an engaging website can attract a portion of these online visitors. Adding videos on the website to bring properties to life can go a long way in attracting more users and potential buyers. Apart from pages where you’ll be posting new deals, you can add sections to your website for testimonials, blogs, and user engagement.
Advantages of real estate wholesaling
As mentioned earlier in the article, the real estate wholesaling business is constantly growing in popularity. But why are many people opting for this form of investment? What benefits does it bring to the investor? Here are a few insights:
Easy to learn
One advantage is that real estate wholesaling is friendly to beginners, hence anyone looking to have a taste of the real estate industry can start here. For one, it doesn’t require any license, and you don’t need a college degree to join the market. Is your account running low? Fortunately, the investment needed in wholesaling is negligible as compared to other real estate strategies. As such, you’ll be able to hit the ground running without too much hassle.
If you’re still learning the ropes in the industry, then this strategy is for you. It’s very simple to understand, even for someone who has never closed a deal before. All you need to know is how to find motivated sellers, advertise the property to potential buyers, and reassign the contract to the most suitable candidate. With proper guidance, you can end up closing multiple deals every month.
Quick returns
If you compare the amount of time it takes you to gain returns from new construction and a wholesale deal, the latter emerges as the clear winner. Depending on your level of expertise, you can close wholesale deals within a few days. In fact, those people who already know their way around the market can do so within hours.
Independent of your location
Another amazing fact about real estate wholesaling is that you can do this business from anywhere. With the growth of virtual wholesaling, you can literally sell a house based in a different country and time zone without physically visiting the place. In most cases, you only need a phone and a laptop to finalize a deal.
Conclusion
Real estate wholesaling is one of the most popular strategies in the industry. It involves a wholesaler whose responsibility is to find motivated sellers and buyers, quote two different prices for a given property to both and make profits from the difference. If you’re looking to join the rest of the industry, the best way to start is by doing enough research.
Once you’ve understood everything, you can start looking for sellers, assess the properties on offer, and make a bid. After agreeing with the seller, you can now start marketing the property using various technological platforms, like social media and real estate websites. Building your own website will also accelerate your growth in the market since people will know where to find you.
References
- “Five Things To Know About Real Estate Wholesaling”, Source: https://www.forbes.com/sites/forbesrealestatecouncil/2020/03/17/five-things-to-know-about-real-estate-wholesaling/?sh=373c9edf70a3
- “Eight Steps To Start Virtual Wholesaling Successfully”, Source: https://www.forcom/sites/forbesrealestatecouncil/2019/11/21/eight-steps-to-start-virtual-wholesaling-successfully/?sh=1fec9edf7d58
- “What is the Goal of Real Estate Wholesaling?”, Source: https://www.investopedia.com/ask/answers/100214/what-goal-real-estate-wholesaling.asp
5 Tips To Wholesaling Real Estate With Technology
- Published in International, Real Estate, real estate investing, Real Estate Investments, wholesaling
The Agents Real Estate Guide for Gawadar
The real estate guide to Investing in Gawadar can be an excellent opportunity for you. The land of Gawadar has proved to be a game-changer for the entire Pakistan. Gawadar is known to become the next Dubai. Investment in Gawadar today can yield considerable returns in the future. Many developing projects would surely be profitable shortly like Gawadar Port, International Gawadar Airport, energy systems, railway tracks, etc. It would not be brilliant of one if they would not invest in Gawadar. However, the investment will grow in Gawadar, that is for sure, but it will take time. Before you invest in Gawadar, know that you will be investing in a long-term project. The following guide will help you make your decision to invest in Gawadar real estate.
Find Trusted & Authorized Agents:
When investing in Gawadar’s real estate, make sure that you choose the land wisely. Don’t buy from any private parties without any real estate office. Make sure that whoever you are purchasing from should have credibility. Ensure that whoever you are purchasing a property from must be approved by the concerned authorities and departments. You can even ask them to show you any registration certificates. After you find such a person, book the land you want to purchase by depositing a token of at least 20% of the total amount.
After you make that deposit, your real estate agent will identify and demarcate the land, and will accompany the local Gawadar DCO office representative and the seller party. Then the exact dimension of the land is provided with a site plan. At this stage, a Bina agreement will be prepared by your real estate agent, and you would be required to pay 30% of the total price to the seller. A transfer date is decided after the transfer of payment is complete. This transfer is followed by a registry document, which seals the ownership of your land.
Pick the Right Mouzas:
Choosing the right mouza is very important. If you have selected the perfect mouza to invest in, then you have kicked start your investment, and your investment in the future will be profitable. In the future, the mouzas will be ranked based on their connectivity with major road networks and highways. The Gawadar Real Estate Developers believe that the mouzas that would be closed to the roads and highways would be of more value, but this is just an assumption that is why do not haste into buying a mouza near the roadside as the Gawadar master plan isn’t released yet.
Additional Expenses on Purchase:
There are certain other costs that you would have to incur when purchasing a property in Gawadar other than the price of the land. A particular cost is allocated for the paperwork, demarcation, GPS, newspaper ad, DCO office fee, taxes, and your agent’s commission. These are some of the additional costs that you would have to incur in purchasing the land. However, this cost is bound to fluctuate based on the size of your land.
Stringent Verification Criteria:
According to the Gawadar development authority, the buyer must get a NOC (no objection certificate) issued before investing in the project. This instruction is vital as many projects in the past have been sold without acquiring GDA’s approval. If the buyer doesn’t confirm that the GDA land is allowed for resale, it can cause him a lot of trouble. That is why avoid getting scammed by buying land without approval from the Gawadar development authority.
Conclusion:
Investing in Gawadar is different from investing in other cities in Pakistan. Gawadar’s journey has just started, and it is high time that you can invest there to earn handsome profits in the future. This city will see a massive transformation in its infrastructure, and investors are looking forward to getting the most significant gain in the real estate industry. The investment in Gawadar is no doubt a slow process, but it is a guaranteed success.
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.
The Agents Real Estate Guide for Gawadar
10 Property Management Tips for Pakistan Real Estate Market
Anyone who has worked in the Real Estate Market understands how competitive it is. It necessitates a wide range of abilities that newcomers may not anticipate. It entails everything from dealing with evictions to negotiating contracts for waste collection, grounds maintenance, and janitorial services.
Aside from being an exciting and lucrative career, the road to success in the property management industry is a long and winding one. You must be well-versed and prepared for the drive if you want to get to your goal. It understands the difference between being a property manager in Pakistan and being a consistently successful property manager in Pakistan.
Consider these ten property management pointers to assist you in dealing with various challenges and scenarios in Pakistan.
Skills in Organizing:
The ability to organize is the first and most crucial talent required of a property manager in Pakistan. It includes talking with tenants, maintaining a complete record of each property, and keeping track of any forthcoming duties on a to-do list. It necessitates the competent and efficient management of obligations. In Pakistan, a property manager’s job requires handling many jobs simultaneously, necessitating excellent organizational skills.
Establishing Protocols and Policies:
To avoid miscommunications and potential difficulties with tenants, property managers in Pakistan must have policies and procedures in place. All regulations for tenants should be written down and supplied at the time of lease signing. Similarly, property managers must have protocols in place for a variety of situations.
Understand the law:
In Pakistan, a property manager must check the state’s fair housing legislation on a regular basis. Property managers may be required to have real estate licenses in some states, while others may demand different certificates or licenses.
He must keep up to date and ensure that he follows all regulations; if he has any legal questions, he should see a property lawyer or an attorney. To avoid any rental troubles, use a search engine to look up the regulations for the state in which you plan to manage properties.
Check out your Tenants:
Many experts stressed the importance of selecting the correct tenant and that there is no substitute for a thorough screening procedure. In Pakistan, it’s critical to ensure that your tenant screens are as thorough as possible so that you can distinguish between excellent and unreliable tenants. The most significant tenants are individuals who can pay on time, take care of the property, and have no criminal history.
Attempt to Resolve Disputes Without the Need for Lawyers First:
Meeting with the renter and addressing the issue helps resolve many tenant conflicts. Before threatening eviction and bringing in a lawyer, follow all property protocols. Noise violations, late rent payments, and management’s inability to enter the flat to undertake repairs are among the most typical complaints in Pakistan.
Abilities in Finance:
Because you may be responsible for negotiating lease agreements, collecting rent and utility payments, paying vendors, and tracking daily spending as a property manager in Pakistan, you must have a thorough understanding of financial management. As a result, you may utilize a search engine to look up different accounting software applications and rapidly produce reports, as well as keep an updated spreadsheet to track your earnings.
Marketing Skills:
Marketing abilities are one of the most undervalued aspects of property management that are often overlooked but are equally vital. Marketing is necessary to advertise vacant apartment units and to be able to write compellingly about them.
Knowing how to write a professional property description, take high-quality images, and create exciting video tours may help you showcase the most significant features of the homes you manage and pique potential tenants’ interest.
Maintain Thorough Digital Records:
Physical mounds of paper are significantly more challenging to sort through and file than digital records. You don’t need to waste time digging through your files for something specific, like a maintenance receipt or contact with a tenant, to find that the records are inaccurate or missing.
Make use of the Internet:
The usage of the Internet is expanding in tandem with the country’s advancement. The Internet is used for various tasks in today’s society, ranging from marketing to corporate administration. As a result, instead of fighting the times, it is wiser to evolve with them. A few examples are creating online ads for your vacant homes, finding tenants online, and researching the best maintenance companies.
Keep Regular Office Hours:
It may appear to be Pakistan’s most basic property management idea, but your renters must know when the management office staff is available for non-emergency issues. Tenants may quickly notify property management when a maintenance call is needed, rather than putting it off and letting the condition in their apartment deteriorate, perhaps resulting in costly repairs.
Conclusion:
Property management in Pakistan is a 24-hour-a-day job that requires constant attention. Property management may be both fascinating and profitable, but it requires both time and money. It’s a fast-paced, fiercely competitive market. As a result, it’s critical to have skills and abilities that allow you to stay ahead of the competition. These habits, along with self-discipline and drive, will benefit both your professional and personal lives.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Pakistan Real Estate Market.
10 Property Management Tips for Pakistan Real Estate Market
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
The best real estate investments in 2021-2022
Best Real Estate Investments:
The real estate investments has shown phenomenal growth in the year over the past 14 months. Most people seem confused because prices in most areas have already gained 60 to 70% and in some places even more than 100%.
Investing in the same areas that have gained so much lately seems like a risky investment and this raises the question of what are the best real estate investments you can make in 2021-2022?
While diversification is important, diversification is not. I don’t agree that in order to make money, you have to invest in every new property that appears on the map.
No one really has the time to study and analyze dozens of societies and observe them all the time. It is best to choose two or three best options and keep your focus.
This will eventually help you manage your assets in a better way and earn much more profit than investing anywhere and anywhere.
Real diversification is not about buying plots of land in different societies, but about investing in different types of real estate. Plots, Buildings and rental properties are the main areas you need to diversify your investments.
DHA Multan
While just like other areas DHA Multan quite a bit has been gained in the last year, yet the prices of the plot have not yet reached their peak. Although it may not show big gains in the coming year, the possibility still exists.
A realistic estimate of 1 Channel plot in DHA Multan should be 17 to 20 Million and in the coming years DHA Multan will slowly move to its target price.
It’s only a matter of time, as prices continue to rise wherever DHA Much begins to develop.
Keep your focus on blocks that are less developed and you will gain a good amount. The problem is that you will have to pay development costs amounting to 2.3 Million, let’s see how it will most likely play out.
The example below is just an expectation of an average transaction and a return on investment in DHA Multan.
Price of plot since October 2021: 110 Lacquers
Transfer expenses and commissions: 5 Lakes approx
Development costs: 2.3 Million approx
Total investment: 138 Lacquers
Expected Plot price in 2 to 3 years: 200 Lacquers
Sales expenditure and commissions: 3 Lacquers
Return: 59 Lacquers
ROI: 14.25% per year approx
Although it is more likely that prices will remain stable for a year or more, it is one of the best and safest investments for a 2 to 3 year cycle in the real estate market from now on.
Construction Projects
Over the past few years, construction projects especially luxury apartments have been hugely successful in Lahore property market.
This is the evergreen segment of real estate and has shown very high gains even between 2016 to 2020, when most people thought that real estate is declining, but in fact, only Plots, files etc have declined. Learn more about construction opportunities here
One thing to consider is the choice of the construction project. That’s why you need to study, analyze and carry out all the research just as you do when you invest in societies.
Projects are much easier to analyze and research and do not involve complex and lengthy procedures. In addition, if you search, you will easily find a cost-effective and valuable project that will give you very good profits over the years.
To make a forecast we will use an investment in the Sixty6 Gulberg apartment building. Imlaak did all the due diligence on the said project which was analyzed and recommended for investment.
Expected investment and return on Sixty6 Gulberg will most likely look like this:
Apartment size: 556 square feet
Price per square foot since October 2021: 23000 per square foot
Total Price: 128 Lacquers (Paid in installments in 3 years)
Transfer expenses and commissions: Zero
Development costs: Zero
Total investment: 128 Lacquers
Expected price in 3.5 years: 40000 per square foot
Total price after 3.5 years: 222 Lacquers
Sales expenditure and commissions: 5 Lacquers
Return: 90 Lacquers approx
ROI: 20% per year approx
DHA Gujranwala
DHA Gujranwala announced the Election on October 8, 2021, the file price of 1 Channel plot has already increased by 1 crore. Although this could be a bit of a risky game if purchased at a higher price.
However, if prices do not rise after Election, it may be a good time to look for an opportunity to buy. Although much will depend on DHA Gujranwala’s master plan and how it continues its future development, the market will respond positively to the vote due to overall positive market sentiment.
There are two possible scenarios, or the prices will jump immediately after voting, as the market sentiment is very positive and this is the most likely scenario or the prices will remain stable or crash a bit.
The second scenario, where prices remain stable or slightly crash due to selling pressure, is more suitable for investment. I believe the plot prices will reach between 17 to 20 Million in the next 2 to 3 years.
In many ways, the gain is similar to that of DHA Multan. However, DHA Multan remains my first priority from now on as it is ahead in the evolutionary progress.
If you are stuck between both DHA Gujranwala and DHA Multan, I would recommend DHA Multan and if you have the investment for more than 1 plot, then 1 each in both will be a good choice. However, a detailed analysis is only possible after a vote and it is not very far off.
Gwadar
Last but not least on this list is Gwadar, it’s like a wild card that can be played at any time. The risks are great but also the rewards, if you are one of those who like to double or triple or quadruple their money, then you can look at it.
The next two years may offer you a very good time to buy at very good prices, if the prices don’t go up earlier, they will eventually do so in the next 2 to 3 years.
The possibilities are endless, but I will only offer to invest in Sangar and New Town and strictly refrain from investing in other societies. We have all seen this happen in the last investment cycle.
The next cycle can take place anywhere from 2021 to 2024 and you may see at least a 100 to 150% gain. This makes it very difficult to predict the exact ROI so I will not go into that detail.
Conclusion
In the end, it all depends on your personal preferences because one size fits all.
However, overall, I feel that because plots and files have increased by almost 100% in about the last year or so, construction projects are the best available option offering the highest yields in the next two years. The investment priority would be as follows:
- Construction Projects
- DHA Multan
- DHA Gujranwala
- Gwadar
Stay tuned to Feeta Blog to learn more about Pakistan Real Estate.
The best real estate investments in 2021-2022
- Published in real estate financing, real estate goals, Real Estate Guide, real estate industry, real estate industry of Pakistan, real estate investing, real estate investment, Real Estate Investments, real estate market, Real Estate Market Analysis, real estate market trends, real estate marketing, Real Estate News, Real Estate Trends
BroadWay Heights Bahria Orchard
Broadway Heights Bahria Orchard
PAYMENT PLAN
BROADWAY HEIGHTS 1
______________________________________________________________________________
OFFICES
Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Office | 325 | 2,600,000 | 780,000 | 54,167 | 520,000 |
| Office | 500 | 4,000,000 | 1,200,000 | 83,333 | 800,000 |
| Office | 540 | 4,320,000 | 1,296,000 | 90,000 | 864,000 |
PAYMENT PLAN
BROADWAY HEIGHTS II
______________________________________________________________________________
Apartments
Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Studio | 327 | 2,750,000 | 1,375,000 | 45,833 | 550,000 | |
| Apartment with 1 bed | 510 | 4,250,000 | 2,125,000 | 70,833 | 850,000 | |
| Apartment with 1 bed | 579 | 4,825,000 | 2,412,500 | 80,417 | 965,000 | |
| Apartment with 1 bed | 582 | 4,850,000 | 2,425,000 | 80,833 | 970,000 | |
PAYMENT PLAN
BROADWAY HEIGHTS III
______________________________________________________________________________
Apartments
Property Area Total Price 30% Down 24 Month 20% On Property
Type (sq. Ft.) (PKR) Payment (PKR) Payments (PKR)
| Apartment with 1 bed | 450 | 3,375,000 | 1,012,500 | 70,313 | 675,000 | |
| Apartment with 1 bed | 452 | 3,390,000 | 1,017,000 | 70,625 | 678,000 | |
| Apartment with 1 bed | 512 | 3,840,000 | 1,152,000 | 80,000 | 768,000 | |
| Apartment with 1 bed | 639 | 4,792,500 | 1,437,750 | 99,844 | 958,500 | |
| Apartment with 1 bed | 643 | 4,822,500 | 1,446,750 | 100,469 | 964,500 | |
| 2-bed apartment | 697 | 4,897,000 | 1,463,700 | 101,646 | 975,800 | |
| 2-bed apartment | 761 | 5,327,000 | 1,598,100 | 110,979 | 1,065,400 | |
| 2-bed apartment | 764 | 5,348,000 | 1,604,400 | 111,417 | 1,069,600 | |
| 2-bed apartment | 785 | 5,495,000 | 1,648,500 | 114,479 | 1,099,000 | |
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
BroadWay Heights Bahria Orchard
Gold Crest – Time to move in
Introduction:
Gold Crest is the height of luxury shopping and entertainment, right in the heart of DHA. It’s more than a collection of stores. It’s a lifestyle choice; a ‘shopping entertainment’ experience where you can browse the latest clothing, chat over coffee, dine with friends, grab the latest craze and let the kids explore their own fun area. With 252,000 square feet of retail space, its air-conditioned luxury creates a cool and peaceful oasis of indulgence in our contemporary world.
Gold Crest Mall DHA Lahore is an optimal opportunity for real estate investment in DHA, Phase 4, Ghazi road, Lahore. Offering high-end luxury apartments for sale according to a flexible part plan. To further enhance the investment benefits in Gold Crest we offer a lot of investor friendly contract terms that very few real estates in Pakistan can bring to the table.
- DHA Joint Venture Project
- 24/7 Power backup
- Flexible payment schedule
- 7-8% Annual rental production
- Parking – 4 floors
- Al Fatah store
- Shopping shops – 2 floors
- Multilevel – 2 floors
- Gymnasium
- Luxury cinemas
- Restaurant
- Children’s play area
- Grocery stores
- 2 Separate Prayer Areas
Main Place
1- Gold Crest Mall DHA Lahore offers an ideal location for brand stores to attract customers
2- Located in DHA, the commercial center and chic area of Lahore
3- In close proximity to all phases of DHA, Lahore and Phase 3 DHA commercial
4- Fast and easy drive to Cantonment, DHA, Model Town and Ferozepur road
5- Great place to live for shopkeepers and socialites
Apartments are ready to move.
As our commitment to our valued customers, we always deliver on what we promise.
Apartments on 5th and 6th floors are almost ready. you can see the updated details in our recent video.
7th and 8th a floor will be ready in the next month and another floor will be ready very soon. So pack your bags to enjoy a new lifestyle at Gold Crest.
Apartments and Shops are available for resale.
For more information on the real estate sector of the country, keep reading Feeta Blog.
Gold Crest – Time to move in
Avoiding the Real Estate Wealth Trap in Pakistan
Beware, this article will change your mindset and real estate investments, so read it carefully while we reject the false rich trap of real estate in Pakistan. Read this carefully and if you have any questions please comment and ask.
After nearly 10 years of going through various cycles of real estate myself, I’ve realized that most of us don’t create any real wealth. Do we live in a paradise of fools and amass false wealth? This prompted me to do some research and analysis of the previous 15 years of investment cycles to find out what exactly we are doing wrong.
During our search for the truth about real estate, we learned that there is a huge difference between returns in USD and PKR. While you may think you made money in PKR, this may not be true for USD. Eventually, almost every other thing in your life and your purchasing power depends on the USD and not on PKR. This means that if your wealth does not grow by the USD, then you are not actually getting richer.
USD is therefore one of the most important factors of wealth creation. This is especially true for foreigners who invest in USD and expect to take their returns in USD.
The Dollar vs. PKR and Real Estate Investments
Just to understand how important this aspect was, we will choose Phase 6, 1 Channel plot in DHA Lahore as an example and compare its price in various years since 2005 in USD. Most real estate investments follow a similar pattern with small variations.
Year 2005
1 x USD = 60 PKR
Average price of DHA Lahore Phase 6 in 2005 = 9 Million ($ 150,000)
Year 2010
1 x USD = 80 PKR
Average price of DHA Lahore Phase 6 in 2010 = 6.6 Million (USD 82,500)
Year 2013-2014
1 x USD = 100 PKR
Average price of DHA Lahore Phase 6 in 2013 = 15 Million ($ 150,000)
Year 2016
1 x USD = 105 PKR
Average price of DHA Lahore Phase 6 in 2016 = 24 Million (USD 228,571)
Year 2019
1 x USD = 160 PKR
Average price of DHA Lahore Phase 6 in 2019 = 28 Million (USD 175,000)
Year 2021
1 x USD = 172 PKR
Average price of DHA Lahore Phase 6 in 2021 = 42 Million (USD 244,000)
Long Term Business
Looking at the USD chart for Phase 6, 1 Channel plot is very clear that long-term trading is almost worthless. I know a lot of people who have kept plots in these phases for over a decade and although you may have overcome inflation or PKR depreciation, you have not created significant wealth.
Most people have this idea that the longer they keep a plot or file, the more fruitful it is. Unfortunately, I hate to report this bad news, which is not the case. At least the property in Pakistan does not adhere to that law. In 2005 the plot which was at USD 150000 is only USD 244000 today. Even buying it in 2019 gives you a much better ROI instead of buying it 14 years earlier in 2005.
Actually buying the phase 6 plot in 2010, then selling it in 2016 and buying it again in 2019, and selling it again now in 2021 would be really quite lucrative.
The reason that devalues a long-term business is that someone who has held the same property for 15 years earns much less money than someone who has held the same property for 10 years. This same aspect makes long-term trading riskier, which can eat away at your wealthy creative endeavors like a termite.
Business Plots and Files in Speculative Cycles
The speculative trading cycles are the next option that most investors choose. It’s a really good choice but with just two big problems:
- You never know what the future holds. So everything you do is based on either guesswork or information that may not work exactly the way you want it to. It’s much easier to just look at the past data and see where you should have invested but planning it for the unknown future is not for everyone.
- If you can’t execute or the market doesn’t work as you hoped, you may be sucked in for a very long recession period.
Speculative trading is much easier said than done and it wasn’t until 2016 when the recession hit the real estate that investors realized what they were doing wrong. A considerable portion of investment has stalled in some areas because some investors felt it was worth trying to wait and hold on. These areas included Broadway Phase 8 commercial, residential plots in various places such as Phase 7, 8, and 9 of DHA Lahore, Malikpur, Shivpur 4 marl commercial files of DHA in Phase 8 ex Park View, and later on Gwadar.
As a result with a huge share of investments stuck in recession, investors have failed to seize new opportunities that have emerged from 2017 to 2020 such as indigo highs, Goldcrest Mall, DHA Peshawar, Downtown Mall and DHA Multan.
Although the return on investment was much better than long-term trading, but still not very impressive, as it included long periods of recession with zero to negative growth.
What does the data say?
For an argument, let’s assume that everything went well and being the smart guy who is Mr. X, he kept money safe in the bank from 2005-2010 and then invested in phase 6 plots in 2010, then took an exit in 2016, and then took entry again in 2019 and has taken an exit now when the average plot price is at 42 Million.
To achieve this, Mr. X needed to make seven decisions during these 16 years. These included selling in 2005 and then investing in reliable locations to earn at least 10% a year. Taking an exit from wherever your money was and then reinvesting in 2010 in real estate. Repeating the same thing again from 2016 to 2019 and then finally taking an exit in 2021.
The location for an error is almost nil, if Mr. X had taken an exit in 2013, it could have gone awry. Similarly, if Mr. X could not take an exit in 2016 the results would be different.
Finally, it was also important to carry out a profitable business during the recessionary periods between 20015-2010 and then in 2016 to 2020. Timely exit from these investments and regaining entry into real estate should be surgically accurate.
How many of you are confident that you can read the market and do this type of business in the future?
The Good Old Rental Income
Rental income has always been considered a very essential and important source of income. However, not many people believe that it can enrich you as a speculative business. Some general problems you may encounter with rental income are:
- If you do not invest in the right rental property, your capital gains may suffer.
- Houses in Pakistan are the worst form of rental income due to huge depreciation and only 3 to 4% rent per year.
Choosing a rental property that would give you at least a 6% rental yield and some good capital gains over the years can be a challenge, but it is much easier to execute than a speculative business. In addition, you now have the option to invest in real estate that can offer an 8 to 10% return on annual rent above your initial investment.
Rental cash flows may seem minimal when you start, but over time they build up and give speculative traders a run for their money. It won’t be wrong to say that slow and steady wins the race because you have a much better chance of being rich if you invest in rental properties instead of plots of land.
What does the data say?
Now for the sake of argument let’s say, Mr. A, who is not as wise as Mr. X and was not sure if he can pull off that miraculous 16-year cycle with such precision. That’s why he decided to buy a property that gave him regular cash flows and average capital gains.
Mr. A has invested € 9 million in wolf ownership, which has given him an average of 10% in annual capital gains and 6% in rental income, which has increased by 10% a year. Ultimately, he invested his rental income in assets similar to where Mr. X kept his money during recessions to make 10% profits a year on them and the results will surprise you.
YES, it is quite true that Mr. A made almost the same amount of money as Mr. X and without ever having to go into the complications and risks that Mr. X took.
The magic actually happened because of the compounding effect on the rental income, this is one factor we never consider when we discuss rental properties.
The 16 years of rental income, which started at just 540000 a year, ended at 4 crores when accumulated and put together at only 10% a year. This is where most of you do your math wrong and only calculate the rental income and do not consider the impact of profits on your rental income.
The way forward
The speculative business cycles of real estate and rental income are almost equal when creating real wealth. Renting is an easier and more stable way to secure your success compared to speculative trading. You can certainly mix them both or opt for rent alone, but I would never recommend just opting for a speculative trade.
Lesson learned
- Rental projects are always green investments that will give you good profits in almost any market.
- Rental properties are the backbone of your real estate investment.
- Plots and files should be invested only for speculative business cycles.
- Long-term keeping of plots and files is counterproductive in general and has not rewarded investors in the last 15 years.
- For better chances of success, rent is much more effective than any other investment in real estate.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Avoiding the Real Estate Wealth Trap in Pakistan
The Ultimate Guide to Selling Property in Pakistan
Selling and Transferring Property in Pakistan is a regular occurrence in the country, where hundreds and thousands of people sell and transfer property. For those familiar with the process, the transferring procedure might just be a piece of cake. But for people who are new and confused about where to start, you’ve come to the right place.
Before we jump into the tricky aspect of this process, let’s clear the air about what exactly transferring property means and why it is an essential aspect of buying and selling property in Pakistan.
What do we mean by transferring property?
As per the law, any individual who owns a property should have the land or property verified under their name. The land should be under the designated ownership; only then can they sell the property to themselves. This is the basic requirement of selling a property.
In Pakistan, the transfer of any property generally consists of the owner transferring the title of the land from one person to the other. Transferring property can occur in multiple ways for various reasons, such as a mortgage, gift deed, inheritance, lease, exchange, etc. All such explanations are why transferring is an essential legal procedure.
Who is eligible to transfer property?
All individuals who can sign a contract are authorized to transfer property ownership in Pakistan. According to the Contract Act 1872, a contract is claimed as a binding agreement between two parties, meaning that it is a legally binding document for any sale and purchase of land in the country.
There are a few exceptions for people who are not eligible to transfer a property:
- Minor: Anyone under the age of 18 is a minor and therefore cannot carry out the process.
- Unstable Individuals: Someone who cannot understand the consequences of their actions, for instance, that of a mentally ill person. Other reasons can be permanent or temporary physical disability such as a Coma etc.
- Legally Barred Individuals: Someone barred from signing contracts cannot transfer property in Pakistan.
What are the steps involved in transferring and Selling a property in Pakistan?
The transferring process, although time-taking, is a simple and easy process with not many legal proceedings. We’ll break down the process into different steps to help you better understand.
Token (Bayaana)
This is the very first step of selling after you’ve successfully secured a client. This involves the buyer giving approximately 1 / 4th of the total price. If not the exact percentage, there is an agreed amount between the buyer and the seller to indicate an agreement from both sides of the party.
The Token (Bayaana) is given by the buyer with a series of negotiations and based on a contract, in which all details are specified. After this, the seller holds negotiations with any other potential buyers.
Usually, a specified period is set and written in the contract for the full amount to be paid. If the sale falls through, the token is returned. But if the full amount is not paid in the specified time, the seller has no obligation to return the token, even if the sale doesn’t go through.
What is a Property Sale Agreement and how can we get it?
A sale agreement contract is a set of required documents that include all information related to the seller and buyer involved in the transfer process. In Pakistan, these are the required documents that are attached with the Bayaana form:
- Complete details of the property with the property owner’s verified name
- Terms of sale for the property
- The total amount of money which the property is being sold for
- Final date for the buyer to pay the remaining sum of money
What is the complete list of documents required?
To carry out the transfer process smoothly, you need to collect the following documents organized. You’ll need:
- Recent Passport Photos of both parties involved (Buyer and Seller)
- Photocopies of National Identity Cards of both parties
- Original Purchase Deed of the Seller (From the time they purchased the property)
- The original ‘Sale deed’ which is the agreement contract between both parties
This list of documents can also include some more documents depending on the province, region, area, etc. (A lot of documents, we know, but verified property takes tough measures!)
- A ‘Record of Rights’ also known as Fard-e-Malkiat, is a form that can be obtained by the seller from the property registration office. This guarantees that the property is under the name of the seller.
- You’ll need a Non-Demand Certificate (NDC), a document that shows you don’t have any fine due on the property. Depending on the location, you can get this from the local development authority’s office.
- For properties in private housing schemes, there is the need to request a letter from a particular society to carry out the property transfer. This can be used in place of the Fard-e-Malkiat document.
Possession of Stamp Paper and Tax Payment
Source: Pinterest
This is one of the essential and final steps of the transfer process. You’ll need a stamp paper to draft the deed for the sales; that will be the contract for the sale. You can choose. Buyers; will be required to pay stamp duty and taxes during this step.
Let’s take a look at this easy breakdown of the tax duty involved:
- Stamp Duty 3%
- Capital Value Tax 2%
- District Council Fee 1%
- Fixed Registration Fee PKR500 (Can differ as per govt. Order)
Drafting the Sales Deed
In Pakistan, the sales deed is usually recommended to be drafted by a property lawyer or a property agent aware of the bylaws and the rules involved in the process. This is a particularly safe option to avoid any complications that might arise in case you are doing it yourself.
Although, people who are selling and buying property as a business have become familiar with constructing the ideal draft for this deed, which can be done easily with the help of the internet. However, the common practice and recommendation are to take the help of a lawyer to avoid any future complications that may occur.
What do we do after drafting the Sale Deed?
Source: Freepik
Finally, after a long process, you’ve reached the last step. You can take the sales deed (inscribed stamp paper) along with the required documents to the registrar’s office. From here, the sub-registrar will call both parties simultaneously and hear their verbal agreement for the trading of property.
You’ll need to sign the documents and put in your fingerprint to verify the final sale and complete the transfer process. Once this is done, the official will register the sale deed successfully, then the transfer process is complete, and the property is now successfully transferred to the buyer.
How much is the Commission for the Property Dealer Involved?
If you’re wondering what the person who helped you secure a client and help you proceed with the sale and transfer of the property is, there is a commission that the dealer/agent gets from the client. Although there are no specific laws to govern and record the work of real estate agents and dealers in Pakistan, the general practice remains a constantly changing variable and experiences changes from time to time.
Usually, the commission of property agents comes to around 1% of the total value of a property. This 1% of the value is each from the buyer and seller as the commission to the dealer. If the buyer and seller both have different agents, then both agents get to keep a 1% commission each from their own clients. Sometimes, property agents will ask for as high as 2% of the property value, or even lower than 1%. The amount varied according to the success, reputation of a property dealer, or property value.
Suppose you’re looking to learn more about the legal aspects and procedures involved in property buying and selling. In that case, you can stay connected with our blogs at Feeta.pk, where you can easily find comprehensive information to guide you through the real estate market.
The Ultimate Guide to Selling Property in Pakistan
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Pros and Cons of Homeowner Association
Several localities offer residents the option to join a homeowner association. These associations can be quite helpful in resolving minor community issues. However, they may come with several drawbacks that need to be considered. To understand the pros and cons of joining HOAs, you must first understand what HOAs are, what they do, and how they affect homeowners.
What are HOAs? A question that you might be wondering. The term simply refers to homeowner’s associations, which manage a community for the benefit of its residents.
What does HOA mean in Housing?
Homeowners associations exist to manage residential communities, maintain curb appeal, and keep property values high. In addition to this, property owners’ associations manage residential communities. Home developers are responsible for initiating the association.
As a result of legal advice, the developer drafts the association’s governing documents. Bylaws, amendments, rules and regulations and articles of incorporation are among the documents.
Simply put, it would mean living in a house that is a part of an association. Although there are plenty of benefits to living in an HOA, it may not be suitable for everyone. Living in an HOA community, for example, gives you access to amenities you would not otherwise have.
What is the purpose of an HOA?
As soon as you move into your new home that is registered with the association, you become a member. The HOA’s governing documents are automatically applied to you as an HOA member. The documents outline the dos and don’ts of a homeowner. Rules like these help preserve property values and keep neighborhoods safe.
Managing an HOA entails taking care of the best interests of the community, enforcing rules, and setting the amount for dues. A review of the HOA’s governing documents is recommended before moving into a homeowner’s association.
Pros of HOA
Here are some pros of HOA that can help you make a decision.
1. HOAs are responsible for maintaining common areas
The aesthetic appeal of a well-maintained community contributes to the ease of living within it as well. A landscape that offers clean roads, trimmed trees, and blooming flowers, brings harmony and peace. The wellbeing of a community is important, and it is comforting to know that these services are in place.
The benefits of living in a community with an HOA include common community areas being maintained by the organization. Swimming pools, playgrounds, barbecue areas, and community centers are included.
The spaces can be enjoyed without having to worry about maintenance. In addition to maintaining the landscaping in front of each unit, some HOAs also take care of maintenance in the backyards of residents.
2. A consistent value for each property
Property values are a primary reason people buy an HOA home. Your board helps you protect your investment and ensures its value remains the same. It is the owners’ responsibility to maintain their lawns, homes, and personal property in accordance with community laws. This offers several benefits for the homeowner as well as the community. The members of the board live in the same community, and they are just as eager to see it thriving as you.
3. Complying with standards
Every homeowner must follow certain guidelines. Prior to signing on the dotted line, buyers should familiarize themselves with the governing documents. There isn’t much tolerance for unruly behavior in a typical association – from a wild party in someone’s backyard to disregarding architectural guidelines. The neighborhood has a board that mediates neighbor disputes and sets forth consequences when things don’t work out.
Cons of HOA
Let’s take a look at the cons of HOA.
1. HOA fees must be paid monthly
Residents of the community must pay HOA fees because the association maintains the common areas and exteriors of homes.
The fees for these amenities vary from community to community. In addition, HOA fees are not set in stone, so they are subject to change from time to time. When the association is unable to collect enough funds to maintain the community, the association may have to increase the monthly fee.
2. Failure to pay HOA fees can have serious consequences
Paying your HOA fees is an important part of living in a community. Fees must be paid by all residents of the community. If the HOA remains unable to collect enough money from residents, the property may not be able to be properly maintained. This can result in the association firing the property manager, causing the community’s appearance and condition to deteriorate.
3. Rules and regulations are enacted by the HOA
The HOA sets requirements for your home’s appearance. Ranging from what type of front door and windows you can have to decide what color your front door or shutters can be painted – the association has complete control over your home’s appearance. You may even be restricted in how much outside decor you can use and how many vehicles you can park in your community. If you violate the community’s rules and regulations, you could receive a fine.
4. Inadequate management
Poor management can lead to deterioration in some HOA communities. As a preventative measure, electing board members who have the association’s best interests at heart is the perfect way to avoid such a situation. In addition, many HOAs hire a management company to ensure responsibilities and duties are properly fulfilled.
5. Foreclosures and lien rights
A lien or foreclosure is always a concern when living in an HOA. There are certain HOAs that can place links on your property and then foreclose on it. The lien will only occur if your association due aren’t paid.
Conclusion
It’s important to consider the pros and cons of living in an HOA before making a decision. Paying monthly fees and adhering to the rules of an HOA community is necessary. You’ll also benefit from things like preserving your property value and being able to access well-maintained amenities (like landscaping). In the long run, you will benefit more from HOAs if you can tolerate the minor inconveniences they bring.
Stay tuned to Feeta Blog to learn more about Pakistan Real Estate.
Pros and Cons of Homeowner Association
Choosing Construction Materials for Your Home
Being the foundation of any house – construction materials should be selected after thorough research and evaluation. Anesthetic design with sustainability is only possible with the proper construction material. However, many remain unaware of the significance of choosing the right materials, foregoing this important step entirely.
To help you make the right decision for your home, Feeta.pk brings you a complete guide on how you should choose construction material for your house.
Estimate your Costs
The construction market offers a wide variety of quality construction materials. However, their prices may vary significantly. Opting for the highest-grade materials should be the right move if you have a limitless spending budget since durability and sustainability are the utmost priority.
However, there will be a limited spending budget in most cases, and finding the perfect materials for your home under a limit can be quite tedious. As a general rule, choose cost-effective materials without compromising overall quality. Estimating a budget can help know how much you can spend on materials, cut down on unnecessary costs and make room for better construction materials.
Availability of Materials
Source: EnvatoElements
Before deciding on any materials, it is essential to determine their availability in the market. Materials that are either rare or unique can become impossible to find in the market, or they might have to be shipped from a different country. This can raise costs and delivery times for the construction and building materials, affecting the overall timeline for the construction of your house.
Climate Conditions
Source: EnvatoElements
Construction materials for homes greatly depend on the climate conditions of the area. Factors such as average rain, snowfall, sunlight, and temperature are essential determinants of the materials. Some materials perform better in cooler temperatures, while others deteriorate under heavy rain or snowfall. This makes it necessary to consider the whole climate while choosing construction materials.
Sustainability
Source: EnvatoElements
With climate activism at an all-time high, the construction industry has also taken a few steps to incorporate sustainability. Construction materials are responsible for a significant portion of the world’s carbon footprint, especially materials such as cement. This has led to a rise in the use of eco-friendly construction materials. If you want your house to be greener, the construction market has several sustainable options that you can explore.
Aesthetic Appeal
Source: EnvatoElements
Another factor to take into consideration while choosing materials is their aesthetic appeal. Construction materials can drastically change the aesthetics of your house. For instance, laminated wooden flooring can give your home a touch of elegance, while opting for ceramic tiles can offer a minimalistic appeal.
The materials that you choose should also complement the surroundings of your house. A log cabin-style home may look pleasant in the hills of Murree but not so much in the streets of Lahore. Your home’s aesthetic appeal should mirror its surroundings while incorporating your unique taste.
Durability
Source: EnvatoElements
Durable construction materials are essential for any home, increasing lifespan and lowering maintenance costs. Some materials can offer universal durability, while others are climate-dependent. Generally, construction materials should be repellent to moisture, corrosion, and other environmental conditions such as heavy rain.
Structural Integrity
Source: Pinterest
For construction materials, it boils down to structural integrity and performance. The materials that you choose should withstand heavy loads and excessive weights. The choice of materials should be evaluated, and there should be no compromise on quality. Anything made out of poor quality can become a safety hazard.
Maintenance
Source: EnvatoElements
The best construction materials are those that require minimal maintenance. Maintenance is necessary for preserving your home’s original look. However, it can also rack up additional costs over time. To avoid these costs, opt for high-grade quality materials as they offer higher durability and less maintenance over time.
Construction material should always be selected after thorough research. Factors such as durability, aesthetics, and climate conditions should be considered. However, the general rule of thumb is to never compromise on quality, as these materials are the core of your house. For more information on construction materials, visit Feeta.pk – Pakistan’s first online real estate market.
Choosing Construction Materials for Your Home
LCBDA auctions 7 plots for Rs34.89bn
LAHORE: The Lahore Central Business Development Authority (LCBDA) auctioned seven commercial plots, titled ‘Downtown Lahore’, worth Rs34.89 billion.
The size of plots auctioned ranged from 12 and 14 Channels. The event organized was attended by international and domestic investors.
The auction jury comprised LCBDA CEO Iman Amin, Brigadier (R) Mansoor Janjua, Colonies Secretary Jamil Ahmed. Sumair Abid and Kamran Ali Rehman.
While addressing the occasion, LCBDA CEO Imran Amin informed that developers were offered a five-year installment plan.
The event aimed to promote urbanization in the provincial capital. This activity will ensure economic growth and employment generation in the area.
For news and blogs, visit Feeta.pk.
LCBDA auctions 7 plots for Rs34.89bn
Top Residential Schemes Near Raiwind Road Lahore
Lahore is a wonderful city with a distinct culture and personality. Anybody could be seduced by the city. In a nutshell, Lahore has something for everyone, which is why so many people want to relocate to the city. The need for houses in Lahore is growing in tandem with the city’s increasing population. Lahore is also attracting significantly fewer capitalists than before, due to the recent trend of investment in farmhouses. Everyone wants to be in an area that is not just safe but also links them to all of Lahore’s large cities. Raiwind is now at the top of the list. Raiwind is a prosperous community. The area is just outside of the main city. Despite this, the population of such an area keeps growing due to the availability of affordable new houses.
The road has become a center of infrastructural and residential projects due to its association with a particular. Raiwind Road today houses some of Lahore’s most creative residential properties, which have been built at breakneck speed. These home projects were designed with world-class features and secure gated surroundings in order to provide an excellent attainable lifestyle to their inhabitants. In this blog, I am going to discuss each of the most frequent and important residential projects on Raiwind Road.
Residential Projects Near Raiwind Road That Are Worth Investing In
At Raiwind, a number of developers have created new and premium residential buildings. As a function of such a step, businesses seem to become increasingly interested in the area. So, if you’re looking for a home away from the bustling and bustle of the city even while remaining connected to it, look at housing projects on Raiwind Lahore.
The residential developments we’ll be discussing are some of the industry’s most successful real estate projects. Additionally, they have gained permission from all appropriate authorities, making them safe and profitable property investing decisions in Lahore.
Lv Heights
LV Heights is a beautifully designed vertical residential area that offers exquisite residences inside an upmarket and safe setting. In the excellent Lahore Villas district, which is immediately connected to the main Raiwind Road, the apartment building provides well-designed studio flats, 1- and 2-bedroom apartments.
With direct access to Raiwind Road, one of Lahore’s busiest thoroughfares, LV Heights too has a high value of the property and also provides inhabitants with exceptional navigational convenience. Adda Plot, Lahore Ring Road, Safari Zoo Park, Shaukat Khanum Hospital, and a number of great higher education institutions are within a near range.
LV Heights offers users a futuristic lifestyle it’s anything but ordinary as a high-end apartment complex. A 24/7 safety system, subsurface wiring, in-house gymnasium, laundry facilities, children’s play area, roof-top restaurant, devoted car parking, elevated lifts with achieving sustainability, and a swimming pool are some of the most notable factors that influence the development.
Tameer Developers, a well-known company in the development sector, is the mastermind behind this beautifully designed apartment complex. LV Heights is recognized as one of the top housing projects along Raiwind Road attributed to a combination of ground-breaking features. It will almost certainly lead to a great return on investment. Given the project’s wide scope, it offers amazingly low per-square-foot pricing, making it incredibly attractive to investors.
Icon Valley Phase 2
Icon Valley Phase II is Iconic Valley Developers’ flagship real estate development. Icon Valley Phase I, their previous development, was just a complete success. Icon Valley Phase II, per the developers, is set gonna take it to a whole other level. It really is a precisely constructed housing scheme that provides inhabitants with all the latest conveniences. This development enjoys a rather practical position as it is located upon the main Raiwind Road but is only a few minute’s drive away from numerous famous places and amenities like Lahore Ring Road, Safari Park, Shaukat Khanum, as well as the Lahore-Islamabad M2 Motorway, and others.
Icon Valley Phase II introduces relatively affordable yet fully-featured townhouses for the first time in Lahore’s property sector and is another key appeal of such an up-and-coming housing project. They are far less expensive than identical properties in many nearby housing projects. Considering their inexpensive cost, these townhouses offer access to those projects’ noteworthy facilities.
When you miss out on Icon Valley Phase I, it’s an even larger and greater chance. Real estate prices in the Raiwind Highway have increased by 40-50 percent in the last three years and are likely to go up more down the valley, increasing the housing scheme’s competitiveness. While Icon Valley Phase II is mainly a housing property, this has a lot to give to a wide range of business investors. The project’s real estate consists of retail stores, corporate offices, residential apartments, and, of course, townhouses. Property in just this project is moving rapidly as it’s been approved by the Development Authority (LDA) and provides flexible payment plans.
Al Hayat Residencia
If you are looking for a modern and comfortable apartment then consider Al Hayat Residencia. This vertical residential project’s remarkable characteristics, combined with its popular area, make it a fantastic addition to that same Lahore residential real estate market. Al Hayat Engineers and Developers, another of the industry’s most renowned names, is just the minds behind all these high-end apartment projects.
This is one of the most luxurious residential developments in Lahore, located on Raiwind Road. Al Hayat Residencia was designed to be a safe, gated community with all the conveniences of modernity. The apartment complex includes one-, two-, and three-bedroom units with modern architectural drawings and is well-designed.
A community center, an indoor cinema, a mall, a rooftop restaurant, a comprehensive gym, and a material removal social aspect will all be included in the vertical accommodation plan. One of the features of the Residency is the main courtyard of magnificence, Al-Hayat, which allows you to completely enjoy the community’s existence. It will be a wonderful location for family and friends to gather and play with children in a protected manner.
This new home development is being built on Safari Rd, which is a good spot. Al Hayat Residencia is the wonderful and best-located apartment building in Lahore, with Raiwind Road just a short distance away. Lahore Safari Zoo and Shaukat Khanum Memorial Hospital are two of the big features in the area. You can also enjoy easy access to Lahore’s well-known Ring Road if you live in this grand-scale apartment structure.
All other investing prospects are based on living accommodations. Investors in the project might expect financial gains of up to 80% over the next four years, according to local real estate specialists. A simple payment plan is an easy way to invest. Due to a number of intriguing characteristics, the project inventory is reaching completion. Time is running out, and you must work diligently to obtain an apartment in this sophisticated building.
Platinum Homes
Platinum Homes, one of its most anticipated residential developments on Raiwind Road in Lahore, and expected to elevate the standard for contemporary apartment living in the city. The gated community was designed with edge lifestyle facilities in mind, assuring that its members have the highest convenience and safety. For round security surveillance system, a constant energy supply, a state-of-the-art water filtration system, well-paved roads, and enough green spaces are just a few of the amenities provided by such an up-and-coming home plan on Railwind Road.
The project’s excellent location, which is directly linked to the main Raiwind Road, provides direct access to many major highways, landmarks, and facilities, including Adda Plot Junction here on Lahore Ring Road, the Lahore-Islamabad Motorway M2, Shaukat Khanum Hospital, or the Lahore Safari Park. Platinum Homes’ housing estate includes fully prepared three-marla houses with attractive interiors and exteriors. This residential development’s residences have a known and understood space of 1,482 square feet and three bedrooms, making them perfect for modest homes.
Platinum Homes, the brainchild of Platinum Construction Ltd, has received all necessary approvals. Feeta.pk, Pakistan’s most reliable property portal, is advertising it. As a result of all these factors, it’s among the safest property investment choices in Lahore.
Regardless of the fact that Platinum Homes is built with low features, this project’s property prices are surprisingly low. Furthermore, as an investment, you can buy a home within the project with easy 2-year payment plans, adding to your convenience. Check out our Platinum Homes project description to get extra information on this very well residential community.
J Heights
J Heights is envisioned to beautify Raiwind Road with its incredibly attractive exterior and outstanding property investment scope. That is a high-end project in Lahore that offers luxury apartments. The property is practically attached to the central Raiwind Road and is conveniently located close to numerous prominent monuments and amenities such as Emporium Mall, Orange Line Station and Motorway M2, etc.
J Heights is a new high-end housing property filled with all the delights and conveniences to let you have an unparalleled urban experience. A rooftop recreational area for major parties and fine dining with recipes by renowned chefs, housekeeping service, a prayer hall, a smart door system, protected parking areas with valet services, 24/7 security with CCTV surveillance, enclosed sports stadiums as well as the gym are just a few of the project’s top-of-the-line facilities and amenities.
If you’re searching for beautifully built luxury flats in Lahore that you can afford in monthly installments, J Heights is the place to go. It’s one of the primary reasons for the apartment complex’s astounding success since it’s presently one of Raiwind Cycleway’s more popular housing developments. You can choose between 1- and two-bedroom luxury apartments for investing in J Heights. The entire project’s interior has been equipped using high-end fittings and fixtures to create a sense of luxury.
J Heights is generating headlines not only for its high-end features but also for its excellent financial potential. Zameen.com, as a marketing and sales partner, has given it its seal of approval. The project has been carefully reviewed for any potential legal difficulties, and it is a completely risk-free investment. The property price on the Raiwind Main Road has increased significantly in recent years, implying that a rising project like J Heights inside the area will provide a good return and a strong rental return.
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.
Top Residential Schemes Near Raiwind Road Lahore
New Property Valuation Rates Until Jan 31
The Federal Board of Revenue (FBR) has postponed its determination on the application of escalating housing values levies in 40 major cities until January 31, 2022.
According to the board’s 2019 Strategic Regulatory Regulation (SRO), Minister of Finance Shaukat Tarin and FBR high-ups feel that property value rates should be hiked by 25 to 30%. Since one of the criteria of the Global Bank’s $400 million Pakistan Raises Revenues (PRR) loan is also that value management rates be related to real market pricing, nothing is being decided yet.
Although it was agreed that the property will be assessed when a shareholder overvalued a home or even if the Alerted valuation tables were devalued, the FBR offered detailed instructions inside an Office Brief as to how to evaluate and execute property cost differences. According to FBR officials, the corporation can assess the market value of assets owned, therefore new valuation tables were produced on Dec 1, 2021, for 40 major cities, bringing properties closer to their genuine market value.
Per the authorities, the FBR has received complaints from a variety of sources, including real estate brokers and housing societies, who have pointed out irregularities and inaccuracies in the recently released value tables. According to the FBR, all solutions to these concerns will be re-notified, with a deadline of January 31, 2022 for execution.
For more information on the real estate sector of the country, keep reading Feeta Blog.
New Property Valuation Rates Until Jan 31
Government Plans 9 Housing Developments Abroad
The Ministry of Abroad Pakistanis and Human Resource Development (OP&HR) has put up nine residential complexes throughout Pakistan to house overseas Pakistanis. The Phase-1 Lahore Overseas Pakistanis Foundation (OPF) Housing Scheme, Phase-1 expansion, and Phase-II OF Farmhouses in Larkana, Dadu, Peshawar, Gujrat, Chitterpari Mirpur AJK, and Zone-V Islamabad are all under development, according to an official source. He said that such programs gave overseas Pakistanis millions of acres in attractive localities including Islamabad, Lahore, Gujrat, Peshawar, Dadu, Larkana, and Mirpur.
The federal government has decided to start developing nine housing developments for Pakistanis abroad all around the country, according to the Ministry for Abroad Pakistan & Employment.
Lahore Overseas Pakistanis Foundation Housing Scheme Phase One, OPF Farm House Phase One Expansion Plan and Phase Two Construction, Larkana, Dadu, Peshawar, Gujarat, Mirpur Jammu & Kashmir, and Zone Five are among housing projects mentioned by ministry authorities. Housing projects are planned in Islamabad.
The federal cabinet has received an update from the Interior Ministry on the issue and will make a decision soon. This apartment complex would be built on Park Road Zone Four in Islamabad, according to the source. The research will benefit around 40,000 individuals, with 6,000 housing units included.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Government Plans 9 Housing Developments Abroad
Vacation Rental Ownership: Pros and Cons
Owning a vacation rental is a great investment decision. However, like other big decisions, there will be downsides, especially if you don’t plan well. You just have to be more discriminating with the help you render toward other people. Making up a list of pros and cons helps you make a good decision. Investments should not be driven by peer pressure but rather by facts. You need to be sure that there is a higher chance of winning than losing when you put your money into something.
Here are some advantages and disadvantages of owning a vacation rental that you should be aware of:
Benefits of owning a vacation rental property
It earns you an extra income
One of the significant benefits of owning a vacation rental is additional income. Extra income is a big plus, especially if you want to achieve financial success. Also, you will have something to fall for if you lose your main job. On the same note, if you want a break from daily work, owning a vacation rental property could be your first step towards achieving this long-term goal. However, be careful when setting your nightly rates, do not overload or underload. Look at the popular rental listings for an idea of prices in your area.
Increase in property value
When you buy a property, the hope is that the value will increase and you will appreciate it, which will help you a lot when it comes time to sell. Every year the value should increase, especially if you are buying in a high demand area. Before deciding on the best vacation rental to buy, check out the past and current market trends to understand what the future holds in terms of property value.
Tax deductions
Holiday rental property is a business just like any other. If you pay taxes based on the income you make from the property, then you can also deduct all business expenses you incurred. Deductions can be payments made to property management companies, repossession, or even management. However, don’t forget to keep the receipts, or you could get into hot water if ever revised.
Applying for a business credit card to pay for business expenses makes it easier for you to provide records when you file your taxes. You can also deduct your insurance, property taxes and mortgage interest. A tax professional can do a better job of helping you advance this. Use an auditor if you are unsure how to proceed because tax fraud is a serious matter, even if it was done incorrectly.
You never have to pay for accommodation during a holiday
Getting away from your daily life is sometimes a great thing. It allows you to disconnect and restore so that when you return you can be more productive. However, one of the reasons why most people do not vacation is the high housing costs. With your vacation rental, you never have to worry about that. Go during the off-season so you don’t miss out on rental income during the peak season.
You can also let your friends and family stay there for a holiday for free, half price or full price. It’s all up to you.
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Various management options
Managing holiday rental property is not easy, especially for first-timers. However, there are management services available that you can take advantage of to make your job easier. You can focus on more important things like marketing the property or even scouting for the next investment property allowing a property management company to do all the time-consuming duties.
In addition, it removes the pressure from the equation, especially for first-time vacation rental owners. You can even buy property overseas and make sure the administration is safe because local professionals will take care of your property. You will not have to travel back and forth all the time to check the rental property.
Easy to find guests
There are several websites where you can list vacation rentals to find guests easily. You don’t even have to market it. After the first guest leaves a positive review, you’ll see people piling up the property, and your job will be easier. You have to work hard to get that first review, and the rest is easy. You can also select the dates you want to rent the property and block dates for you, family or friends to visit the home. If you’re worried about not finding guests, it’s time you dumped that thought. While the property is up to standard and in a popular place, you can be sure that they will come.
You learn about real estate investing
There’s so much you can do in real estate besides buying a holiday rental property. However, you will learn to practice faster than read about other people’s experiences. The best part is that you learn by enjoying the benefits of being a vacation rental owner. You can then expand your business and earn more when you have learned the ropes.
Disadvantages of owning holiday rentals
Unexpected expenses
Unexpected expenses are not a surprise in a holiday rental, as well as at the main residence. Whatever doesn’t work or needs a replacement is your responsibility. Expenses such as utilities, regular maintenance taxes and resupply can be expected. However, huge expenses like burst pipes or a broken air conditioner have considerable costs to replace or repair, and they may catch you off guard. You need to set aside a certain amount each year to provide unexpected maintenance and repairs. You can rate it at 1% of the total purchase price of the property.
High down payment
Primary housing may require only a 3-5% down payment. However, this will not be the case when you are buying a holiday rental property. While you may not plan to live there, lenders will charge a 20-30% down payment, which can be difficult to cough up. On the same note, the requirements for your credit score will be much higher as you take on more debt.
More fees and taxes
Some taxes you may have to pay include property taxes, local and state taxes. Depending on the tax laws in your area, you may require a business license as well as a hotel and sales tax.
In terms of fees, you’ll need to pay a backup fee for the websites you use to market your home. Looking back at what you spent on taxes and fees for the holiday rental, you may be shocked at how high the figure is. Most likely, the biggest fee you pay is property management. For short term rentals, this can be anywhere between 15% and 30% of the gross rent. So, you have to control these expenses and ask yourself if you are making losses or gaining anything by renting the property. If you do not control your expenses, you may notice that you are taking care of the property at a loss.
Maintenance is time consuming
Owning a vacation rental property is not as easy as posting it online and cashing the checks. You need to perform regular care and repairs and respond to the needs of the guests.
When the vacation rental property is not in the same area as your main residence, it will be a great hassle to manage it if you are not hiring property management services. It takes a lot of time and money to travel back and forth to run a business. On the same note, you’ll have to deal with marketing if you don’t have someone to help you. Responding to reviews and questions in a timely manner is essential to staying relevant, not forgetting to update the availability calendar and nightly rate.
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It is made easier with reliable property management services. However, after you get several vacation rental properties, it is highly recommended that you get property management services for a better result unless this becomes your main job.
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.
Vacation Rental Ownership: Pros and Cons
Silver City Housing Scheme Rawalpindi: Location, Prices & Booking
Introduction
The residents of the Twin Cities are looking forward to the development of the Silver City Housing Project. It is now a unique investment opportunity for all those looking to benefit from their investment in an approved housing project. It is a safe investment due to its legal status and environmental status.
Silver City Location
It is ideally located on Girja Road, which serves as a link between the housing society and the rest of the city. It is only 19 minutes away from Srinagar Highway and it is very accessible from Islamabad International Airport as it is only a 15-minute drive away.
It is also at a convenient distance from GT Road and M-2 Highway. It is because of its location that it is anticipated in the business community of the Twin Cities.
Nearby Landmarks
There are many landmarks near this housing society and this makes it a unique place to invest. The main landmarks are:
- Thalian Wojnodo
- M1 and M2 motorway
- Islamabad International Airport
- Srinagar Highway
Silver City Accessibility
It is very accessible from all the main points in Islamabad. As it is only 19 minutes away from one of Islamabad’s major highways, the Srinagar Highway, it gives access to every major part of the city.
People can easily get to this apartment using local transportation or their vehicles because it is in close proximity. Accessibility is one of the main highlights of Silver City Rawalpindi.
Nearby Residential Societies
Silver City is not the housing company in the area and there are other housing projects as well that compete with it. The most important housing projects that are under development are:
These major housing projects make Silver City a unique proposition because people are mostly driven by nearby landmarks. As it is surrounded by huge housing projects, it creates a sense of confidence in the investors that their money is safe.
Silver City Developers
Laraib Associate & Developers (PVT) Ltd. and SAREMCO Group is responsible for the development of Silver City Rawalpindi. They have previously been involved in real estate and have delivered 100% results to their consumers. It is one of the reasons that this housing project will also be successful, as these developers are working on their projects quite extensively.
Silver City Development Status
The work is in progress in this place and the investors can physically visit the place for their assurance. Its evolutionary progress shows the interest of the developers in its real estate development. This project will be up and running soon, as development progress is on par with Blue World City and Capital Smart City.
Silver City NOC
Rawalpindi Development Authority (RDA) has legally cleared this land. It adds to the value of the property because people will have confidence when investing in this project. Investors should not worry about the legality of this project because RDA has issued a NOC for this project.
Silver City Features and Pleasures
Silver City Rawalpindi has a long list of modern amenities and facilities that make it a complete package for everyone who is looking forward to investing in this project. The list of these facilities is:
- 24/7 Security with active surveillance by guards
- Eco-Friendly Environment
- Inbound Community and crossings at entry and exit
- Medical Facilities
- Educational Institutes
- Playgrounds and parks
- Underground wiring
- 24/7 Availability of utilities
Silver City Master Plan
Silver City is a 21st century wonder and they are modernizing the living standards in Pakistan. This housing project consists of all the modern amenities and facilities that are the requirement of this day and age. People are given several options to choose from because there are different plot sizes available in 3 different blocks.
Follow the official Silver City map:
Residential houses
The following are the residential plot sizes available in Silver City Islamabad:
- 4 Marla
- 5 Marla
- 7 Marla
- 10 Marla
- 1 Channel
Business Plots
Here are the commercial plot sizes available in Silver City:
Plot Prices
The prices of this housing project are one of the most affordable in the region. Even after the approval of the GDR, the prices are well affordable by the middle class. Prices start at 20 lakhs and the reserve starts at 2.80 lakhs. There are 42 installments and a total of 4 years. This housing project aimed to provide value for money to all its investors and a reasonable profit in the end.
Backup Details
It’s very easy to book a plot inside Silver City Rawalpindi. Some requirements must be met for application. Here are the requirements for booking land in Silver City Rawalpindi:
- Complete booking form
- CNIC copies of the candidate are required
- Advance or Payment order in the name of “Silver City”
- Management may allow Cash Payments as well
- Once all the documents have been sent, make sure you get the receipt
Conclusion
Silver City Rawalpindi is a huge opportunity for anyone who wants to invest in a reasonable range. It is reasonably priced to target the middle class who are looking forward to owning property. It has become difficult to own property in this economy and if there is an opportunity like Silver City Rawalpindi, one should take advantage of it. It will provide huge returns in the future as the price goes up.
RDA has given a green signal for its development, which is already in progress. This legal support from the relevant authorities should strengthen the confidence of investors. Silver City Rawalpindi is among the most advanced housing projects and it is priced according to the lowest spectrum to facilitate investors.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
Silver City Housing Scheme Rawalpindi: Location, Prices & Booking
- Published in Housing Schemes, Rawalpindi Housing Schemes, Real Estate, real estate business, Real Estate Guide, real estate investing, real estate investment, Real Estate Investments, real estate market, real estate marketing, Real Estate News, Silver City Rawalpindi Booking Procedure, Silver City Rawalpindi Loction, Silver City Rawalpindi Map, Silver City Rawalpindi NOC from RDA, Silver City Rawalpindi Plot Prices
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
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
The 6 Best Arizona Markets to Invest In Real Estate
Arizona is growing, with a population of 7 million people no doubt due to good weather, low unemployment and a strong economy. This state also has an average sale price of just $ 240,000, so it’s budgeting for the smart investor as well.
If you think about buying investment properties in Arizona, the top markets highlighted below could be ideal.
Phoenix
As you ponder where to buy investment real estate in Arizona, Phoenix will definitely appear on your list. This growing city is home to five million inhabitants, a strong economy and many job opportunities.
As you know, these are factors that often make buying residential or commercial investment properties a smart move. Phoenix also has robust nightlife, sunny weather, and many attractive restaurants and golf courses.
Short-term rental properties are hot due to the city’s growing tourism business, which attracts extras every year for the Phoenix Film Festival, among other events. Rents and sales prices are rising, and real estate experts claim that the average house price could rise by 25% in the next four or five years.
Tempe
Tempe is a popular city for the purchase of long-term single-family rentals. Arizona State University is based here, and more than a dozen other colleges are nearby.
You can expect to have many students interested in your rental properties in Tempe. This is also worth considering: Some estimate that Tempe’s job market will grow by 50% over the next decade, compared to just 33% across the United States.
Tucson
Tucson is family-friendly and has a cost of living well below the national average. This historic city also has excellent public schools and is nestled among beautiful scenery; this is another factor that makes it popular for young families.
One of the upcoming real estate markets for savvy investors in Tucson is Corona de Tucson. It is a beautiful area in which to buy a long-term rental property, especially a single-family home. Families like this community because of the low crime rate and nearby schools.
Residents often rent in Corona de Tucson because house prices here are among the highest in the city. Downtown has many popular bars and restaurants, which makes it tempting for business investors as well.
Glendale
This small bedroom community about nine miles west of Phoenix is popular with families, retired couples and young adults. Your tenants can participate in an NFL game at Cardinals Stadium, and Adobe Mountain Desert Park is just minutes away.
This town is known as the ancient capital of the state. The growing population and labor market attract many properties.
Prescott
Prescott is not as large as other cities in Arizona, but many locals prefer homeownership to rent. So if you like real estate, you may want to think about a homeowner financing single-family homes to home buyers who don’t have the money or credit for a traditional mortgage.
Prescott also has universities and colleges, so it’s still an attractive place for buying toys as well. This growing city may be a good choice for new real estate investors, as homes remain relatively inexpensive here.
Mesa
Fifteen miles from Phoenix, Mesa is a center for business and education and ideal for growing families. Rental properties are quickly catching on here, as parks are a short walk away, and a number of world-class golf courses are also nearby.
Mesa is highly valued due to a low median selling price of less than $ 300,000, so it is becoming a hot commodity for Arizona investors.
Summary
Arizona is popular for relocation because it has a strong economy and a growing housing market. Warm weather and excellent but affordable restaurants also make it a popular destination for tourists.
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
The 6 Best Arizona Markets to Invest In Real Estate
Tips for House Flipping as an Alternative Investment Strategy
House Flipping, Investing in homes can be an incredibly lucrative business for an entrepreneur who does it right. And here’s the thing: turning a house doesn’t just mean buying real estate.
It is a full-time company that requires further planning, research and a lot of hard work. Here’s what you need to know if you are thinking of investing in a home as an alternative investment strategy.
Do the Necessary Research
If you’re one of those people who watched your fair share of HGTV, then you might think you’re fulfilling the challenge of throwing a house. We’re sorry to blow your bubble, but it takes significantly more knowledge and expertise than you assume.
Feeta.pk is a long-term company that has just started throwing houses on the market. Their goal is to turn houses within 90 days.
This creates incredible competition for first-time house fins because Feeta.pk has a team of experts working for them to make everything happen. If you’re hoping to go head-to-head with some of these larger companies, you’ll want to do your research right away.
You need to understand many different aspects of the process, including but not limited to trendy market housing, such as choosing the right property and understanding tax and zoning laws, to name just a few.
Hire the Right Contractors
One of the biggest mistakes people make when they are new at home is that they lack enough patience. Too often they will hire the first contractor who says he can do all the necessary work.
However professional house fins know enough to invite several bids from a set of contractors, as well as explore the contractors they are considering hiring. You want to make sure you hire professional and licensed contractors.
There are far too many activities through the renovation and construction process that can result in injuries. If you do not hire a professional company that offers compensation to workers, you may find yourself liable and will have to pay some sort of compromise.
However, if the prospective company has adequate insurance to cover its contractors and their employees who may be injured on the job, they may be entitled to receive pre-settlement financing. This can keep you completely out of the equation and protect you from any unforeseen problems that could create additional complications and expenses along the way.
Extra Expense Plan
We can tell you now that once you’ve set up your final budget and financial plan, you should automatically expect to pay more than you originally planned. Inevitably there will be other expenses that occur during the renovation.
You may find a fountain or electrical problem that did not initially manifest during the home inspection. Maybe you meet a termite that could bring you back a few weeks and a few thousand dollars.
Make sure you add a little wobbly room to your budget before you fix it for good.
Decide On Your Strategy for Flipping
Overturning a house does not necessarily mean that you will sell it after it has been completely renovated. Some people find that their investment can go much further if they decide to transform it into a rental property.
This could be for full-time tenants or through a third-party site like Airbnb. Weigh your options and find out if your investment is better if you become a real estate manager or a simple reseller.
Talk to the Professionals
The most important thing you can do is fully educate yourself about the process. Ask lots of questions and talk to professionals in a variety of fields who have the knowledge you may be missing.
Talk to real estate agents to find out about the apartment. Talk to a financial planner or accountant who might be able to help you build a realistic budget.
Talk to local contractors who have a solid understanding of the realities of dealing with specific home projects, especially renovations. It is a great investment of time, money and energy for turni domon. Don’t waste some of your jumpings too fast.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Tips for House Flipping as an Alternative Investment Strategy
How to Get Started on Real Estate Investing Despite Less Than a Perfect Credit Score
The US housing market has gained value around $ 2.5 trillion in the year 2020, more than any year since 2005. The strong demand and record low mortgage rates have been the main reasons behind this growth in the market. This could be the golden period for investors who want to start Real Estate Investing.
A low or bad credit score can become a hindrance for many investors buying real estate. So, does that mean you should abandon the idea of investing? NO!
There are many other options for investors to start investing in real estate despite a less than perfect credit score. Using the following investment strategies, investors can build capital through alternative financial sources and have better investment opportunities.
Real Estate Wholesale
If you want to invest in real estate but can’t build the required capital due to a slightly lower credit score, then real estate wholesale can be a great option for you. Real estate wholesale allows you to make significant profits without having to buy an investment property.
Grocery real estate is completely different than flipping houses. You need to test your marketing skills and communicate effectively with everyone. Skiing how to make connections as a real estate investor will help you play the game of real estate wholesalers.
How Does Real Estate Grocery Work?
No investment or funds are required to start a grocery store, so your credit score is insignificant here. Mainly three parties are engaged in real estate wholesale: seller, wholesaler and buyer. Let’s take a look at the following example to better see how wholesale works:
- You find a seller who is willing to sell his property at a discounted price. After some negotiations, you form a contract with the seller to purchase the property at a price of $ 90,000 and with the terms agreed upon.
- Then take advantage of your networking skills to find a potential buyer or investor looking to buy a property to invest or invest in wolf ownership.
- Using your marketing skills, you convince the buyer to purchase the property at a price of $ 100,000, assuming all the conditions specified in the purchase contract.
- Now you take the $ 100,000 from the buyer and give them the ownership of the house. Give $ 90,000 to the seller under the purchase contract and the remaining amount of $ 10,000 is your net profit from the deal.
Investors can earn anywhere from $ 5000 to $ 30000 with real estate wholesale. The key here is to build capital with smaller profit margins.
Go for Hard Loans
Asset loans are a great way to start investing in real estate. Lenders look beyond your credit score and give loans based on the post-repair value of the house’s offer as collateral.
Hard cash loans are short-term loans lasting for 6 months and up to 2 years. This is ideal for an investor looking for funds to buy an investment property, renovate it and turn it into profit in a shorter time.
La interest rate on hard money loans are higher compared to conventional loans due to the higher risk involved in real estate investing. The typical interest rates on difficult cash loans range from 7% to 15%.
Because the property is the only protection against default, lenders force you to pay anywhere from 10% to 50% of the loan amount on the down payment. The down payment is calculated based on the Loan-to-Value (LTV) ratio of the property. It may vary depending on the lender and the estimated value of the property.
For example, if you are willing to buy a property worth $ 100,000, then a hard money lender will offer a 90% LTV connection. That means the total loan amount will be $ 90,000 and you will have to pay the remaining $ 10,000 for the down payment.
Advantages of Using Hard Loans for Real Estate Investment
1. Simple Signature and Less Documentation
Unlike the process of traditional lending by lenders, hard money lenders are not looking for your credit score, credit history or debts. An asset is a major qualification for difficult cash loans. This makes it easier for investors with a not so perfect credit score.
Documents such as a purchase contract, two forms of identification, a preliminary title report, proof of finance and insurance are enough to get a difficult loan.
2. Quick Lending and Approval
Thanks to the simplified control process, investors can take advantage of a difficult loan within a few days or a week. This allows you to build capital in a short amount of time to capture a lucrative investment opportunity.
3. Flexible Conditions
Hard cash loans are given by individuals or a group of private investors and they do not conform to any guidelines, which means you can take advantage of flexible terms. You can negotiate with lenders on loan terms, repayment schedule and other terms of the loan.
Approach Private Lenders
Another option is to approach private lenders to finance your real estate project. Private lenders can be your friends, relatives, business partner or anyone looking for a return on their investment.
A strong investment plan and the potential returns are the ones that private lenders are looking for by lending to you. So no matter if you have a bad credit score, private lenders can still lend to you.
Private lenders do not follow specific guidelines or rules and regulations. They give you a loan with their own money, so you can negotiate on terms like an interest rate or a repayment period with the lender. The key here is to compensate well to the lender to get the best deal.
When you have bad credit, you will have to try to convince a private lender to give you a loan. You can form a partnership with the private lender, where the benefit can be shared in equal parts, agree to pay them a specific interest for a defined period or offer to pay loan points to seal the deal.
Select Seller Financing
Seller financing is also known as owner financing or purchase money mortgage. It allows you to sign a mortgage agreement with the seller instead of applying for a loan from a financial institution.
From a seller’s perspective, financing your purchase makes it easier to sell the house. This also allows a seller to collect monthly payments for an offer to finance your purchase.
A buyer usually has to sign a payment letter to take advantage of a seller to finance. The promissory note indicates the interest rate, repayment schedules and details of non-payment. These types of loans are generally repaid over 30 years with a balloon payment at the end of the loan.
Advantages of Using Vendor Financing
- A seller will finance your purchase ignoring the fact that a bank or other traditional lenders have refused you. That makes it a great alternative to bank mortgages.
- There are no credit checks or income checks involved in the loan process. A buyer can take advantage of this strategy to start investing in real estate despite a low credit score.
- The terms of the loan are flexible and fixed between the buyer and the seller. So the interest rate, down payment or monthly payments have room for negotiation.
- Because there are no controls, vendor financed loans can be obtained quickly. The closing process of selling financing is relatively cheaper.
Conclusion
The great thing about real estate investing is that it doesn’t need you to have deep pockets or a perfect credit score to get started. Everyone has an equal opportunity to build their wealth by investing in real estate.
Having a less-than-perfect credit score cannot prevent you from buying an investment property. You can choose alternative financial sources to make your first purchase and start investing in real estate.
Alternative financial sources are more flexible with their loan terms and may be more convenient for an investor in terms of repayment.
Your knowledge of the field, marketing skills, effective communication and ability to make connections will open doors to more investment opportunities.
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How to Get Started on Real Estate Investing Despite Less Than a Perfect Credit Score
Habits of successful Real Estate investors
Investing in real estate there is no piece of cake. If you are new to real estate investing in Pakistan, you may find it difficult to get started real estate in Pakistan. Many newbies disagree on starting, how much you need to invest and what things you need to consider in a property before buying it.
You may also notice that some people around you are real estate gurus. They are constantly investing in real estate, diversifying their portfolio, investing in houses or managing rents perfectly.
But, how do these work real estate gurus know how to invest in real estate and earn great income. Well, there are some habits of successful RE investors that they follow religiously.
In this blog, we will discuss the habits of success RE investors that helped them stand out in the crowd.
So let’s get started.
Market dynamics:
There is only one side of the market, and it is not the bull side or the bear side, but the right side.
~ Jesse Livermore.
First – you need to understand the real estate market and how it goes up and down. Without a good knowledge of the market, you will not compete and succeed in the market real estate market. So, before putting your little earned money into the market, make sure that you do your research and diligence about the market and how it works in Pakistani society.
For example, if you want to buy a piece of land, research first. Try to explore as many areas as possible. Make a study of that area. Try to know the prices in the region. Calculate the investment and options. Ask about the area and make sure the development authorities approve your purchase of that area.
Don’t ignore the uncertainty:
“Leave it for sure. The opposite is not uncertainty. It is openness, curiosity and a willingness to embrace a paradox instead of choosing sides. The ultimate challenge is to accept ourselves exactly as we are, but never stop trying to learn and grow. “
– Tony Schwartz.
Like all other business and investment opportunities in Pakistan, real estate also comes with risks and uncertainties. High interest rates come with great rewards, but you have to think strategically if you want to stay away from problems and financial losses. With well-informed decisions and sound strategies, it is effortless to mitigate risk in real estate.
Patient:
Patience is the key to success. Quick decisions won’t get you anywhere, and most likely you’ll end up with financial losses. To protect your hard-earned money, make sure you take calculated steps and well-informed decisions. Patience not only saves you from losses but also exposes you to many new business opportunities and avenues.
So make sure you don’t jump on the first property that comes your way, and research before making the final decision.
Limit your emotions:
Before doing anything investment in real estate, make sure you consider facts, not emotions. One of the best habits that all real estate investors have is that they can separate emotions from trading. In short, their decisions are based on hard concrete facts and projections, not on emotions and subjective information.
Plans:
Plan your investment decision. A plan is important because it keeps you on track, and you don’t have to waste your time, energy, and resources moving back and forth randomly. For example, if you have finished a piece of land, think about what you can do with it. What things will you change, and what will you add or remove?
Ask yourself as many questions as possible and plan accordingly.
Keep up to date:
Keep learning about the entrances of real estate. Education is one of the easiest and best ways to succeed in real estate. By visiting education, you will be able to know everything about market changes and trends. As a result, you will be far ahead of everyone else in the market, and as long as you continue to learn, you will continue your success.
Don’t forget your work ethic:
“A man without ethics is a wild beast released on this world.” ~ Camus.
Be honest with yourself and the people associated with you in the business world. Keep good morale and a strong image because, in real estate, word of mouth is very important. All successful real estate investors have built trust with the people around them, and it is precisely that sense of trust that helps them grow.
References:
“People influence people. Nothing affects people more than a recommendation from a trusted friend. Reliable forwarding affects people more than the best broadcast message. A reliable referral is the Holy Grail of advertising. “
~ Mark Zuckerberg.
Never underestimate the power of references. Period. All successful traders and investors always encourage recommendations. Recommendations are the perfect way to contact any friends and family of real estate investors and previous or current clients.
Specialize in a niche:
If you want to stand out in the crowd and take all the glory, develop a niche. A niche will allow you to better target and focus on people to meet specific needs.
Delegated tasks:
It is not simple to perform all the tasks yourself. All wise investors have the habit of delegating their duties to others. For example, many successful investors need management help features. However, it would be useful if you remember that getting help does not mean disengaging or cutting yourself off from the business.
Build a network:
“Networking is an investment in your business. It takes time and, when done correctly, can yield excellent results over the coming years. “- Diane Helbig.
Interconnection is one of the most important things in real estate. A massive portion of the real estate sales depend on interconnection. All successful investors place particular emphasis on building relationships with the people involved in real estate. Networking provides you with opportunities and new income for the growth and development of your business.
Don’t neglect your partners:
Last but not least, successful real estate investors make their partners happy. In real estate, the partnership is essential because of the amount of capital invested by different partners. For smooth and stress-free investments, you need to work together to achieve a successful business and investment operation.
So these are some of the habits of successful RE investors. Go through these positive and effective habits and try to understand their usefulness in the real estate market. Try to implement these strategies and practices in your company and see the results.
If you want to ask questions about the habits of successful investors, please leave a comment in the comments section below, and we’ll get back to you as soon as possible.
Until then,
Happy investing!
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Habits of successful Real Estate investors
Required NOCs and Approvals for CDA Jurisdiction Housing Projects
The Capital Development Authority has published a comprehensive list highlighting all approvals and Certificates Without Object (NOC) required for the process of investment and development in Pakistan’s real estate market.
Feeta.pk brings you a list of required documents for NOC / approvals for a project in a plot of approved housing. It is as follows:
- Ownership Documents:
- Grant Letter or Certificate
- Possession Letter
- Demarcation Certificate
- NOC and Approved Layout Plan of Housing Scheme.
- No Object Certificate (NOC) by the authority to Process the construction Plan approvals in CDA.
- Approved Layout Plan.
- Letter of approval from Project Control Committee (DVC).
- Approved Letter of Construction Plans.
- Approved Construction Plans controlled by the Competent Authority.
- Certificates for third exams:
- Certificate of Control Structural Project
- Mechanical, Electrical and Plumbing (MEP Certificate)
- Fire Extinguishing Certificate
- Access Road Approval (In case of CDA main avenues & Astride Roads).
- Approved letter from National Highway Authority (NHA) (In case of GT road).
- Altitude of Free Certificate of Civil Aviation Authority (if in the vicinity of Airport or to reach maximum altitude).
- Useful Connection Approval:
- Approval letter from Sui Northern Gas Pipeline (SNGPL)
- Letter of approval from Islamabad Electric Supply Company (IESCO)
- Letter of approval from Water Supply System
- Approval letter for Fire System.
- NOC / Environmental Approval of Pakistan Environmental Protection Agency (PakEPA).
- Construction Complete Certification.
For more information on the real estate sector of the country, keep reading Feeta Blog.
Required NOCs and Approvals for CDA Jurisdiction Housing Projects
4 Strategies Real Estate Investors Know About
The real estate investment market is not static and unchanged, it moves according to the times and behavioral trends. As an investor, realizing the changes is the key to protecting your assets and maintaining your profitability. New models are always born, seemingly coming out of nowhere, and models that were previously mainstream are also starting to become less popular. For example, there was a time when repair and clicking were the most popular way for investors to make money, but now because the costs don’t make sense, and the current market isn’t designed for short-term holdings, people favor other methods.
Smart investors don’t insist on forcing a method, they observe the market, see what works and then turn to it. In the last 12 months, we have seen a lot of changes in the real estate market. Many cities suffer from historically low inventory, along with low interest rates, which makes it a truly competitive market to buy property for home buyers and investors.
However it is not the end of the world, here are 4 investment models you can use now to set yourself up for a great future.
Zoom Cities
A boom town is a city or place that sees a rapid explosion of population and economic growth due to oil or gold. After the pandemic, something completely new arose, Zoom cities. With people working from home and not needing to drive to the office, people have decided to relocate to the suburbs of the city or even to the rural areas, where they can have more space and cheaper housing while still getting an internet connection. can work. It has created a market for desirable places to live outside big cities.
This caused the growth of Zoom cities, places where people moved to avoid crowded cities and experience a higher quality of life. As a result, in these cities, house prices have increased significantly due to this new demand. As an investor, you can easily get a share of the action by buying properties in these regions, and equipping them with good internet and great amenities so that people can come and have a long and comfortable stay. If you can get a good property, it can generate a lot of income for you.
The great thing about this strategy is that it can be applied at any price, even in the luxury market, it can be incredibly lucrative. According to Gulf Homes Lux Homes, “As people continue to discover beautiful cities and towns outside the freeway, more shoppers will flow into those areas and turn them into valuable zip codes. If you want the opportunity, it’s there to take.”
Residential Assisted Living
An area in the housing market that is often neglected and overlooked is the elderly who do not want to stay in full nursing homes but also need care and support. This has led to the rise of what is called residential cohabitation, a service that allows them to stay in their homes, but also receive the necessary care and attention. These people have equity in their homes and need money, so as an investor, you can give them the opportunity to stay in their homes, give them access to some much-needed capital, and solve a problem for underserved demographics.
Domhakado
How does a real estate investor live in a multi-million dollar home paying only $ 1000 a month? By a strategy known as house hacking. By housing, an investor buys a home and then subdivides it to create several dwellings for different tenants.
These tenants pay the rent and it is a win-win for the investor as it reduces their mortgage payment. It’s even better to do this strategy with multi-family housing because it allows you to really maximize. If you want to buy a home, reduce costs, and pay for it quickly, house hacking is what you might be looking for.
Buy and Hold
Buying and holding is certainly not a new investment strategy, but in recent years it has become less popular than strategies such as repair and launch and wholesale. Most people think they need to throw home for profit as soon as possible, but right now that’s the last thing you want to do. Part of your investment portfolio should include assets that you want to hold for the long term. With these properties, you can be sure that your investment will be protected against market volatility, guaranteeing appreciation and growth of your investment.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
4 Strategies Real Estate Investors Know About
Real Estate Investing: Still a Smart Move?
Billionaire industrialist Andrew Carnegie once said that 90% of all millionaires earned their wealth by owning real estate. Real estate investing continues to be one of the best ways to make money and grow wealth.
Tax benefits, appreciation, diversification and protection against inflation are just a few reasons that people invest in real estate. Many like to own tangible assets instead of stocks or bonds.
For investors, there are many options, including single-family real estate, commercial real estate and Real Estate Investment Trusts.
There are properties available across a wide range of budgets. For example, a home mortgage in Virginia Beach, A VA with an average home price of $ 310,000 will be significantly less than a home in Ventura, California, where the average price exceeds $ 700,000, or in San Francisco, which now has an average sale price of $ 1.3 million.
Let’s take a look at the different types of real estate investing, check the current state of markets, and hear what some experts have to say for everyone.
Investing in Single Family Properties
Domestic values in the United States have exploded over the past year. The average selling price for a home in May 2021 was just over $ 350,000 and the average selling price was up 23.6% more than a year ago, according to the National Association of Real Estate Agents (POMEGRANATE).
With mortgage rates still at some of the lowest levels in the past 50 years and charged demand after a year of life with the threat of COVID, most experts predict at least another year and a half of rising prices.
Not everyone agrees. A recent survey revealed that 41% of respondents predicted the house market bubble is created sometime in 2021 and will start pricing along with the downward slide. More than a quarter thought low prices would not occur until 2022 and 13% did not predict another housing market.
The economy that caused the housing crisis in 2008 was significantly different than in today’s market. In 2008, the housing crash was caused by subprime mortgages, which were written in record numbers, then put together and resold at an astonishing rate. The industry has learned a lot since then and is more cautious about lending. The government is also more experienced in protecting the housing market, such as the tolerance and market modifications it has made during the pandemic.
Investing in Commercial Real Estate
The commercial real estate market is recovering more slowly and has not yet reached pre-COVID levels, according to the NAR.
Performance for large-scale commercial real estate decreased by 28% year-on-year after 1 2021. Transactions for portfolios exceeding $ 2.5 million decreased for all types of real estate except hotels. For smaller commercial real estate portfolios of less than $ 2.5 million, transaction volume decreased by only 1% year-on-year.
Prices are also falling, as average real estate is up 6% less than a year ago.
Experts expect the market to continue to recover, but fear that employment trends could impact some sectors of commercial real estate. With companies shrinking and increasingly allowing employees to work from home, there are some concerns that organizations will need a smaller footprint. The Wall Street Journal, for example, reported on this 42 million square foot of office space was marketed in Q2 and Q3 of 2020.
Real Estate Investment Trusts (REITs)
There is also growing activity in Real Estate Investment (REIT). REIT is backed by a company that uses investment funds to buy and exploit income real estate. They are bought and sold in the market like stocks. These have also become attractive to investors who want to include real estate in their portfolios but do not want to make a traditional property.
REITS, in essence, works similarly to dividend-paying stocks. They have to pay 90% of their taxable profits in the form of dividends to maintain their REIT status, which allows them to avoid paying corporate income tax.
REIT shares buy and own buildings. Mortgage REITs provide real estate and may include mortgage securities.
While REIT decreased by more than 5% in 202, according to the FTSE Index Nareit All Equity REIT, many fund managers have a positive outlook for REITS in 2021.
Is Real Estate Investing Right For You?
Currently, high valuation rates and negative yields of many government bonds are not aimed at attractive bids. Interest rates, expected to remain low at least until the end of the year, will continue to make real estate investment attractive options for many business borrowers.
Investors should always compensate for any investment against other potential opportunities. Every investment is subject to risk.
Whether real estate investing is right for you and your investment portfolio will depend on the totality of your finances, risk tolerance and investment goals.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Real Estate Investing: Still a Smart Move?
Factors That Govern the Real Estate Market
Pakistan’s real estate market has gained momentum over the past decades now. Investors see it as a great new horizon to invest and make profits, making the market more attractive to new investors both medium and long term. Investing in the real estate market is not easy. There are many factors that affect the market, and it is essential to gain knowledge before making any move to invest. To understand the fluctuation, we need to study the factors individually. Although there are many elements including, demographics, economic growth, affordability, laws and policies, and so on.
Here are a few that mainly change the game.
1. Location
The first and most essential element is the location of the property. The better the place the higher the price. Therefore, the real estate in the city center is more expensive than the real estate in the surrounding area. Location controls many other factors including, commuting, and access to facilities. Proximity parks, schools, facilities and proximity to the city are all great additions; therefore control the price of the property.
If you are buying property, the location should be very considerable. In Karachi, the most notable regions are, DHA, Clifton, PECHS and SMCHS and so on. Similarly, if you are shopping in Islamabad, places like DHA, I8, Bahria etc should be considered. Lahore on the other hand is famous for Cantt, Model Town and DHA.
No matter if you are investing in a business or buying a house, location is the first consideration. Although this will cost more than the others, this is a factor that needs serious consideration before making any decision.
2. Physical state
The second in line is the state of the property. Sometimes the state of the property is zero and the only money involved is for the location and size of the plot. To invest in real estate, conditions play a vital role. If you are interested in buying a newly built house, you may have to pay more than buying an old building. It is always preferable to buy a well-maintained or new property instead of investing in a property in a poor state.
The condition of the property includes the interior and exterior. Critical and intentional inspection of the property is essential. Before concluding the deal, check for everything from murals to appliances and furniture arrangements; each plays an important role in access to the state of the property. You don’t need a house that needs a lot of repairs and maintenance if you pay a quick sum of money.
You can negotiate the price once the condition of the property is accessed. The price is negotiable if you find problems with the condition of the property. Anything damaged or broken can help you in negotiation. This negotiation will save you some money to raise the status of the purchased property.
3. Limit Appeal / Surroundings
The main element that adds value to the physical condition of the property is the quality of its surroundings. If the property is surrounded by low-valued shops like mechanics etc, the value will be low. The surroundings can be improved and this improvement will add value to the property price. The overall appearance of the property makes it more expensive.
A good car garage, a plantation outside the property, a decorative driveway and lights can multiply your profit. This is one aspect that can be worked on at any time. If your house looks good from the outside, you can always ask for more price resulting in more profit.
4. Government Laws and Policies
Policies about where you live or intend to purchase property also have a big impact on its valuation. A change in policy causes a price fluctuation. For example, the recent change in the law on share buying has caused a decline in the price of shares.
When buying any property, you need to check the policies currently in force.
5. Facilities and Installations
Ease of living in the new standard of modern society and place. And usually, all newly built properties, whether apartments, built-in communities or corporations, all compete to provide customers with everything that can be arranged.
Generators, elevators, community halls, gyms, swimming pools, parking, electricity, and water supply are all part of facilities and facilities. Most people
prefer PECHS instead of DHA only because of the constant water supply. Older communities and properties where such high-tech facilities are lacking often cost less.
Access to Public Transportation is another advantage to property taxes. Other facilities include supermarkets, hospitals, and parks, which all add value to the properties in the vicinity.
6. Security
No one is willing to buy property in an area where security is an issue. Everyone expects a safer and safer environment. Location and security go together. Because security primarily depends on the location of the property.
Inbound communities and societies are a new cart. The 24/7 security of these built-in communities is a valuable addition that cannot be ignored. The addition of guards, CCTV, and a high-tech security alarm further enhances the property.
7. Demand and Supply of Property
As the world changes, so do the choice of people. The trend to buy an apartment with a picturesque view in a tall building has increased the demand for such kind of property and therefore the prices are higher.
Most people are interested in buying property in urban centers, creating a superior demand. According to the economic rules, the higher the demand the higher the price. Meanwhile, in places where property abounds available and less demand the prices are lower. On the other hand, if prices are too high, demand falls resulting in an imbalance of supply and demand.
It is imperative to study the demand and supply of real estate before buying one.
The above-mentioned factors are the basic ingredients of real estate but are not limited to these. There are many factors that govern the price of the property. It is important to study every factor before making a big decision to invest in property. This article is written to educate people about property valuation. We intend to help everyone with future property issues.
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.