How to Reduce Risk in Real Estate Business
For all investors, it is important to take measures to reduce risk in real estate investments. For that, a complete understanding of various market factors and trends is important.
Real estate shares a huge portion of economies around the world. With rapid population growth around the world, commercial and residential real estate has been on the rise. This has created opportunities for investors to pool their money in potential projects and secure their assets.
However, real estate investment is a complex and risky process. The market is volatile with several potential risks. Government policies keep changing and, similarly, the market trends keep shifting. Thus, a proper understanding of the market is required before making an investment.
Feeta.pk, Pakistan’s smartest property portal, brings you a guide to reducing risk in the real estate business.
Benefits of Investing in Real Estate:
There are several benefits of investing in real estate. Firstly, it is the best way to reduce the risk of assets losing their value. Secondly, a rental property provides a source of continuous cash flow.
The following are some other benefits of real estate investment:
- Provides greater returns on initial investments
- Long-term assets security
- Tax breaks and deductions
- A passive income source
- Covers mortgage payments
- Ability to leverage funds
- Protects against inflation
Risks of Investing in Real Estate:
Most investors are unaware of the risks involved in real estate investments and are unable to plan a strategy.
The following are some of the most prominent investment risks in real estate.
- Volatile market
- Negative cash flows
- High maintenance costs
- Investment in real estate takes time to grow
- Real estate transactions are slow
Factors Affecting the Real Estate Market:
The following are some factors that can affect the real estate market:
- Demographics
- Economy
- Employment opportunities
- Interest rates on loans and properties
- External investors
- Fiscal budget
- Government policies and laws
These factors govern the investment trends in any given area. Considering these factors and devising a strategy accordingly will help you reduce the risks involved.
Tips to Reduce Risk in Real Estate Business:
The following tips can help you get the most out of your investment with minimal risks:
- Understand the real estate market and its trends
- Choose the right real estate domain
- Consider the functional attributes of projects to reduce risk in real estate
- Invest at the right stage of project development
Understand the Real Estate Market and its Trends:
Understanding the real estate market is essential, especially in Pakistan, where inflation is growing every day, rupee devaluation is a common occurrence, and investment trends keep changing. Without having a solid knowledge of different trends, there are higher chances of investment failure.
Investment in real estate is of three types: buying, selling, and renting. Each type of investment requires a completely different understanding of the market. To understand each one of them, break down the market into micro components and research it.
Real estate companies can also guide you about the current changes that the market is experiencing. Moreover, they can give you options for projects with potential growth.
Choose the Right Real Estate Domain:
Source: Pinterest
With population growth, more residential projects have been launched. However, commercial real estate is mostly a high-end investment option, with people investing billions each year.
Real estate investment can be in the form of buying, selling, renting, and shareholding. All these options have different market requirements, risks, and benefits. Your investment in real estate largely depends upon your capital.
If you are a seasonal investor and looking to get the best out of your investment quickly, then buying a property and selling it after some time can be a suitable choice.
Consider the Functional Attributes of Projects to reduce risk in real estate:
Before making an investment, you need to understand the functional attributes of the relevant project. The first major thing to decide is whether you want to invest in a commercial project or a residential project.
To invest in a commercial project, you need a high investment. There are generally higher returns associated with this investment.
Commercial areas develop faster, and the development of local and international brands increases the value of these commercial plots.
Residential projects, on the other hand, require smaller investments, but it requires a long time to receive profitable returns. However, investors are confident to invest in residential projects, as the market is currently growing at a fast pace.
Apart from the nature of the projects, you need to look for the following functional attributes of a property:
- Location, location, and location
- Property style and size
- Home amenities
- Nearby facilities
- Taxes and cost of living
- Lifestyle needs
- Basic infrastructure
- Connectivity and transport
- Local market indicators
Compare your desired property to the other properties in the market with the same features. It will help you make the right investment with minimum chances of loss.
Invest At the Right Stage of the Project Development:
Source: Levelst
Real estate development is completed in seven different steps: land banking, land packaging, land development, building development, building operation, building renovation, and site redevelopment.
At every stage of project development, investment varies. For instance, if you are buying a plot file while land development authorities have released the construction plans you can own the property at low rates.
However, buying a fully developed commercial or residential unit is a big investment. These units can help you regain the initial investment in a short amount of time, however, the risk associated with it is also bigger. Thus, you need to carefully evaluate all factors before investing.
For more tips on how to navigate the real estate market, visit our Feeta blog.
How to Reduce Risk in Real Estate Business
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
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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
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
9 Real Estate Investment Tips for 2023
Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
-Franklin D. Roosevelt
This quote perfectly summed up the advantages of investing in real estate and for all the right reasons. Real estate is said to be one of the most lucrative investment opportunities around the globe and, Pakistan is no exception.
In Pakistan, real estate is considered to be one of the most common and widely practiced investment opportunities. Every year, millions of people invest in real estate because of its benefits and financial rewards.
Why Should You Invest in Real Estate?
And, we will tell you why you should invest in real estate.
We have jotted down some of the pointers that will help you understand the advantages of real estate investment in depth.
Real estate is one of the best investment opportunities out there because of the following reasons:
- You get full ownership of the tangible asset.
- You can easily mitigate the risk associated with real estate by being strategic and informed about the latest real estate market trends. In short, it is easy to predict the real estate market.
- Property owners get certain tax relaxations on their property.
- Real estate comes with stability. Unlike other investment opportunities such as stocks, real estate investment is stable and prices appreciate over time.
- You have control over your investment and you do not have to rely on external sources to manage your property.
- Real estate does not get affected by severe economic conditions. In short, real estate ensures safety from inflation hedge.
- There are multiple uses of real estate. You can use it for accommodation, renting, reselling and leasing.
- Real estate faces less market volatility in terms of prices and risk.
- Real estate yields a high rate of returns.
If you are planning on investing in real estate make sure to know the pros and cons of investing in real estate and tax on property.
Things to Consider Before Investing in Real Estate in 2022
Before making any kind of investment in real estate, do consider the following factors:
- Diversified Portfolio
- Credibility
- Customer Base
- Transparency
- Safe and Secure Investment
- Location
- Research about Market Trends
- Installment Plans and Down Payments
- Money-Back Policy
1. Diversified Portfolio
In real estate, there are high chances of portfolio diversification. It means you have many opportunities to invest in. You can invest in commercial properties, residential properties, and industrial areas and vice versa. Check out factors affecting the real estate market.
It is important to know about the different real estate options and how you can use them to reap financial benefits.
For instance, residential properties can be used for accommodation, rentals and bread and breakfast services. On the other hand, commercial spaces are solely dedicated to business and commerce.
2. Credibility
Before investing, always consider the credibility and records of the real estate company. Make sure that their product offerings are approved by local developmental authorities. Also, ask around and try to know as much as you can about the company.
Also, if they have an online presence, visit their social media accounts and read the customers’ reviews.
3. Customer Base
Try to contact the people who have been the customers of that specific company. Ask questions and try to grasp as much knowledge as you can.
Sometimes, others can provide you with valuable insights as well. So, listen carefully and try to gain as much knowledge as you can.
Also, the ratio of the customer base is crucial because it tells you about the success rate and credibility of the company. The higher the customer base, the higher the worth of the company.
4. Transparency
Transparency is the most important element in real estate. It ensures the validity and reliability of the company. Before financing any sort of real estate project, make sure that the operations and processes of the company are clear and transparent.
There are many real estate agencies out there that do not ensure transparency. For instance, they will not inform you about all the costs associated with the property such as maintenance costs vice versa.
5. Safe and Secure Investment
Before investing, make sure that the investment is 100% safe and secure and that there are no hidden terms and conditions attached to your purchase. By safety, we mean that your money will be safe with the company and your money will not get blocked in any way possible.
A good investment is secure, gives you ROI and has high liquidity. If all these three elements are present in your investment, you are good to go.
If you are looking for transparent and secure real estate projects within major cities of Pakistan, we suggest you have a look at the following projects:
These projects are located at prime locations, making them stand out from the crowd. If you have low capital, don’t worry, because you can still invest in these lucrative projects. You can invest in these projects from 17 lacs and onwards.
The best thing about these projects is that they will provide you with annual estimate gains and a money-back policy.
6. Location
The location of your investment can make all the difference. For instance, if you are investing in a shop in a commercial hub, your chances to benefit from the investment may improve by many folds. Similar is the case with residential properties. Residential properties will not only ensure a good resale value but they will also yield good rentals. Checkout invests in a shop or a house.
7. Research Market Trends
The State Bank of Pakistan (SBP) reported that the construction and housing sector has been consistently higher than nine percent over the past decade.
It is crucial to be informed and up to date with all the latest market trends and news. It will not only allow you to make a better and more informed investment decision but it will also help you to become a risk aversive.
8. Installment Plans and Down Payments
Many real estate projects sound lucrative and attractive. However, they may come with a high price and risks. For instance, some firms have very rigid installment plans. Look for projects that offer you flexible and easy-to-pay installments.
Also, be clear about the down payments. Usually, if you pay a larger down payment, you will have to pay easy and manageable installments and your number of installments will also reduce.
9. Money-Back Policy
Not all real estate firms offer a money-back policy. However, Feeta.pk Pakistan’s smartest property portal offers a money-back policy.
It means that if you think your investment purchased by Feeta is not making money, you can always sell it back to the company. Feeta is providing real estate investment solutions. No one offers such services in Pakistan where you get a secure and transparent investment opportunity with a money-back option.
These are some of the factors that are of pivotal importance. Make sure you consider all of these before making any kind of investment.
If you want to know more about real estate like 1 marla to square feet follow real estate podcasts, real estate books, real estate YouTube channels, and real estate blogs.
If you have any questions or confusion, let us know. We will be more than glad to help you out. Get to know the top insurance companies in Pakistan.
Disclaimer:
None of the information published in this article should be constructed as investment advice. We strongly advise our readers to always do their due diligence before investing in any project. It is the reader’s responsibility to know the laws regarding investments in their region.
Watch this space for more information on that. Stay tuned to Feeta Blog for the latest updates about Pakistan Real Estate.