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Common mistakes while buying a home

Common mistakes while buying a home

We all love to live in our own dream homes. Home buying process is a great experience, but many people find it extremely difficult. People just make many mistakes which are costly, but can be avoided. Here are the tips to avoid common mistakes while buying a home.

No knowledge of property market

There are two types of property markets; buyer’s market and seller’s market. When houses are more and buyers are less, it’s the buyer’s market. On the other hand, when buyers are more and properties are less, it’s the seller’s market. In buyer’s market, buyer gets the property at low price and vice versa. Many people try to buy a home in seller’s market and pay more prices due to less properties and high demand. It’s better to buy property in buyer’s market.

Want a home you can’t buy

Another mistake to avoid while buying a home is to fall in love with a property we cannot afford. Normally beautiful homes with gardens and prime location are expensive. We should not fall in love with specific home, as we need to be practical. We should always look for the houses which are in our budget and we can afford to buy.

Not looking other homes in the market

Buying a suitable home is a complete process, but many people buy home without seeing other options in the market. This is a big mistake which we should avoid. It’s always good to visit other homes too as we should have many good options. This helps us in comparing the homes to select good one with reasonable price.

Not looking the flaws in a home

Normally new home is flawless as it has sound structure and new finishes. But old houses have many structural & finishing issues. When we ignore these issues, we have to pay more in form of repair / renovation costs. Therefore we should always avoid this mistake by properly view each and every detail of house and its condition.

Offering too much price in a hurry

Some people make high price offer in hurry as they assume that home is reasonable and chances are high that other people will try to buy it. Whereas reality is very different as it takes months to sell a home. It’s always better to make a reasonable price offer as there is always 10% price negotiation margin.

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(15) Comments

  1. You Tried hard…but I’m afraid still most of the people in our part of the world don’t consider taking help with some Consultancy Company or Real Estate Marketing Company like Star Marketing Pvt Ltd for their fruitful guidance…Never the Less pretty useful piece of writing.

    Reply
  2. Nazish Fatima

    on   said 

    Dear sir,
    it comes in news paper that FBR are sending notice about 2500 people, because the have showed in their returns gift amount.

    FBR claims that this is black money or the money have been save from taxes.
    if this kind of situation chasing money by government then kindly give your opinion what will impact the sky rocket price of real estate.

    Should not prices will fall very fast ?

    if i talk for DHA phase 6 karachi the price of 100 sq/yard commercial plot is RS 170 Million or 17 crore. could you think for any person who can buy this plot having WHITE money ?According to income tax rules from profit the tax ratio is 35%.

    Reply
    • Nazish Fatima
      Definition of black money: Money which is earned by illegal means / not taxes / or if a person cannot show the source of income.
      FBR is right at the moment. This is the nature of Pakistani people to dodge the system. FBR is sending letter as these people are unable to show the proof of income. When SC is investigating the money trail of Nawaz Sharif and Imran Khan, then why not other culprits.
      CRACK DOWN ON BLACK MONEY AND REAL ESTATE SECTOR
      Unfortunately Pakistan real estate sector is alcoholic of black money. The abnormal high property prices in Pakistan are not due to real demand but due to huge influx of black money in real estate sector. When black money is out, property price start crashing.
      DHA COMMERCIAL PROPERTIES
      Many commercial properties in DHA are of genuine businessmen but their ratio is very low. Majority of property holders are people with black money as they have used real estate sector for whitening the black money. In Pakistan its very hard for even professional couple to buy 125 sq yards or 5 Marla house of worth 1 crore rupees. Buying a property of worth 17 crore is impossible for people with white money.
      MASSIVE CRASH IN STORE
      In 2005 crash property price worth 1.5 crore was reduced to 50 lac. Now situation is much worst than 2005. Economy is down, political turmoil and crack down on black money. This will be the biggest property price crash in history of Pakistan.
      STAY TUNED AS RIDE IS GONNA VERY BUMPY
      First time in history of Pakistan, honest tax payers and genuine buyers will be winners.
      THE CYCLE HAS JUST BEGUN. THERE ARE MORE SELLERS IN THE MARKET THAN BUYERS. IF BUYERS REMAIN AWAY FOR FEW MONTHS, WE WILL JUST FIND THE DESPERATE SELLERS, WILLING TO SELL PROPERTY AT ANY COST.

      Reply
    • RIZWAN

      on   said 

      we all want a crash to happen but when will it happen no one knows or even if it will happen or not….since property mafia is very strong and all generals politicians beurucrats are involved in this business therefore just pray for best that prices come down

      Reply
      • ZAHID ALI

        on   said 

        Mafia keep buying properties at lower prices for about 4 to 5 years, then they start speculation by selling purchasing the same property at escalated prices. They keep price increasing for 2 to 3 years. In the mean time, the mafia sell off their properties on escalated prices as much as possible. Once the mafia out of the market, there are not enough genuine buyer who really maintain the market pace. therefore price starts falling but it will also take 2 to 3 years
        So don’t worry, it is in the mafia favor that property price falls, so that they can plan for next 10 years cycle.

        Reply
  3. ZAHID ALI

    on   said 

    I really like your persistent view about property market crash. I also have the same view. As i said earlier, real estate bubble always takes time to deflate. It is not like stock market, foreign currency market or gold market etc which takes only months to come down. What i surveyed in Karachi in recent month is that asking price is not reduced much but there are only very few buyer in the market, however the market is full of sellers who are desperate to sell their properties.

    The best investment in current scenario is to buy dollars. The dollar will be equivalent to 120 Pak Rs in the next six month. This is my opinion and I may be completely wrong.

    Reply
    • ZAHID ALI
      Nice analysis
      Its true real estate market takes time to crash. But in Pakistan we have different scenario. Here property prices are high as per black money. When SC is after black money who will buy the properties. Do you think common Pakistanis can buy expensive properties? Definitely not. Expensive properties were always the target of black money people. If you see DHA OR BAHRIA TOWN, you can find more empty plots than houses and even very few houses are occupied. This is the fruit of unchecked black money in real estate sector.
      Property situation is same in Karachi, Lahore, Islamabad and other cities. Sellers are more than the buyers. In Islamabad Bahria, asking prices are decreasing but slowly. Same is true in Lahore.
      We will see proper property crash after panama case decision and this will be the biggest crash in history of Pakistan. You will see the domino effect, once supreme court opens the mega corruption cases.
      DOLLAR
      This is the biggest gamble
      Yes for short term rupee might fall against dollar
      But in reality China is introducing the new world currency to challenge the supremacy of dollar as world reserve currency. We are living in an interesting world where old order is falling apart.

      Reply
  4. Muhammad azeem yddin

    on   said 

    dear sir

    you have very nicely brief about the buying tips which is based on reality.

    this could help people to take their decesion and no doubt it is very knowledgeable.

    kindly also through light about the new valuation of FBR prices hopefully comes in next month.what will impact the market if FBR increase the valuation.

    Reply
    • Aalia Shehzad
      Pakistan real estate market is stagnant or down as per;
      higher property taxes
      political turmoil
      Slow down of Middle Eastern economies and
      JIT
      Due to fear of JIT and crack down by SC, investors are fleeing the country with their black money
      Unfortunately Pakistan reality sector boom is just due to massive influx of black money.
      Without black money prices always fall

      Reply

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