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Things to consider before real estate investing

Things to consider before real estate investing

Real estate has always outperformed the all other types of investments. This is due to low risk and high profit of real estate investing. Investing in real estate not only provides the steady monthly income, but property price also appreciates with the passage of time. Here are the things to consider before real estate investing, which make it even more profitable.

Employment opportunities

The first thing to consider before real estate investing is the employment statistics of the city. People prefer to relocate in the cities which have better employment opportunities. This migration increases the property demand. High property demand means rise of property price and good rental income. So always invest in the cities which have better employment opportunities.

Location

Location of property is very important as prime location properties are sold out like hot cakes. Houses which are near to schools, hospitals, offices, parks, commercial areas and cinemas have high demand. Similarly, people also consider good road and transportation links before buying or renting a house. So always invest in a property which has good location.

Security issues

Everyone wants to live in an area which has better law and order situation. If you look around the world, you will find that countries with high security have high property price. On the other hand areas with high crime rate have low property price. So always buy the investment property in an area which has high security and low crime rate.

Size and condition of property

Always look at the size and condition of property before investing in real estate. Large size properties are expensive and attract very few buyers or renters. Most people prefer to buy or rent 2-3 bedroom houses. Another factor to consider is the condition of property, as you might have to renovate it which will increase the overall investment cost.

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Buy to let investment

(7) Comments

  1. it is very interesting, we are now listening about property from al those whose don’t have any idea, but words are very common” Ham ne to pehle he kaha tha aap flat lelo flate mehngi hojaeng” Now it is true, but we can not say any thing to those advisor. But, when we read your blog, we will receive energy and hope for the best, actually it is very uncomfortable situation for all us (Whose waiting for price reduction). In last, Allah knows better, but the situation is very tough for specially me and all needy which have need flat/home for living on normal price.

    Reply
    • Nazir Ahmed
      Today’s biggest news worldwide is that 1% people hold 50% wealth. Its fruit of capitalism. Mafia will get hold of land / commodities. This artificially increases the prices. Same is true in Pakistan. Few people have enriched themselves whereas masses are struggling. Its very hard for honest tax payer to buy a home/flat in PAKISTAN with white money. But at least things are moving in the right direction. SC/NAB is checking all who have assets beyond means. This will bring in more properties in the market. As no one will be able to get hold of property with black money. So prices will fall.
      In shaa ALLAH things are improving. Just wait for couple of months and prices will be record low. Prices are still falling. HONEST TAX PAYERS WILL BE REWARDED SOON AS THEY WILL BE ABLE TO BUY PROPERTY AT LOW RATES.

      Reply
      • Thank you very much for your reply, but it is very difficult to survive, prices increased rapidly but the crashing pattern is very low. It is very difficult situation for those whose are living on rent and rent for flat and house has almost double. In Karachi, the normal rent of flat is 20 to 25 thousand, however, the same flat normal rent was 10-12 thousand, all of rented families are in very panic situation, but hope, Allah SWT will help us and property will be declining sharply and mafia will be surrendered in near future.

        Reply
        • Nazir Ahmed
          This trend is due to high property prices. When home ownership declines, it increases the rent demand. Mafia has secured all properties are renting out on high rates. Hope that will the fall of property prices, home ownership will rise and rents will decrease.

          Reply
    • nazir bhai humari bhi situation same he hai cannot afford to pay so high rents but bus ALLAH say dua he hai k property giray tu hum bhe apna ghar lain

      Reply
  2. Muhammad azeem uddin

    on   said 

    Dear sir

    as many times we have talk about come down prices having a lot of views and opinion.. I am one thing understood that is

    IF the kibor / bank mark up have increased on saving A/C about 12% and above then the real estate prices should come down .. and may get oppurtunity to buy home the homeless / rental people.

    For other financial reason like come down stock market. ruthless crack down if SC.. Black money out … thease are looks like a mother who always giving hope for their children boiling water that foods just have to be preparing for them.. and the children have sleep with our foods.

    we are discussing during last two years market will come down.. but having a lot of financial crises the market have gone up..

    lastly you and all should wait January 2018 .. let’s see

    Reply
    • Muhammad Azeem Uddin
      Its better to wait for the price crash. Its happening right now. 2 years before 5 Marla / 125 sq yards commercial plot in Bharia Lahore was sold out at 4.5 crore. But now hard to find buyer of 2 crore. Property price fall is a lengthy process and takes time to complete. Its better to wait rather than to jump on the sinking ship.

      Reply

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