Being a first-time real estate investor, one should be extra careful; land scams are one of the significant risks you might have to encounter, mainly when it’s your first investment. A real estate investment can be profitable when proper steps are taken. A few essential things are considered as first-time buyer investors should follow all the steps to get maximum benefits.
Real estate investment is considered one of the most profitable investments worldwide. With the increasing demand for houses and commercial places, the revenue on the property is guaranteed. But hold on, it might seem like a piece of cake which it is not! Real estate investment comes with risks; not every land is profitable, and not every property is legit.
Here in this article, we have gathered a list of tips for first-time real estate investors so you can get the most from your investment in the minimum possible time.
First and foremost, fix your budget to invest. It is better to start from small and short-term investments and start your search. There are numerous housing societies where you can buy plots for sale or houses and apartments that fit your needs.
But every area has a different price range of the same size of the property. For instance, 5 Marla houses for sale in a developed housing scheme are 20 to 30 % more expensive than in a newly developed housing society comparatively far from the central city.
So, it is better to fix your budget and then start investing; it will help you filter out the unnecessary bulk of listings and give a better idea to invest.
Plan before investing:
Real estate is a versatile industry; you have options like houses, apartments, flats, plots, farmhouses, commercial properties, etc. A location and the type of property provide extra profit on the investment.
A property in the commercial building has higher property markup than the property in the residential sector. So plan where and what type of property you are interested in and then search for the properties.
Before buying properties, it is important to do research and background checks. You must know all the necessary ins and outs of real estate. While investing in property, check for the location which offers promising revenue in the long and short term to earn profit. Check;
- The speed of development work in the area
- Safety and security of the neighborhood
- The market trend of real estate in the area.
- Approved and legal properties.
If you find that housing society is not approved or there is an issue of security in the locality, then it is better not to invest in the area. Likewise, housing schemes with slow development work will give you revenue after a long time.
Visit property site:
Land scams are common in Pakistan. Therefore, it is necessary to visit the property you buy at least twice. Seeing a house for sale will also offer you a better idea of location, neighborhood, and facilities in the surroundings. Images and videos can offer you a house sketch, but visits display the whole picture.
Sometimes there is water in the land that is not suitable for construction, and sometimes the area does not have a direct supply of utilities which can be a hurdle in the future. Site visits might be expensive, but the visits are unavoidable to avoid any future issues.
Buying land is not a one-person show; thus, hiring an expert for your guidance is better. A reliable real estate agent will make your investment process smooth and get the deal done in the minimum possible time. A realtor is helpful in many ways for instance;
- A real estate agent can deal with all the necessary paperwork.
- An excellent real estate agent knows the local market and can get you the best property on your budget.
- A real estate agent is helpful in the negotiation process
- Agents give tips and guide you to increase the property value and point out which area or housing scheme is best to invest in.
Investment in land is profitable indeed; all you need is a good plan, persistence, and strategy. Real estate agents from reliable companies offer great help no matter your first or hundredth investment in the property sector.