Pakistan has been doing very well recently, but has had its share of economic challenges in the past. The key to overcoming financial obstacles lies in sticking to certain basic principles of investing.
Whether you are in the upper income or middle income brackets, buying real estate can be a difficult undertaking even when the economy is doing well.
That’s why today, Lamudi Pakistan has compiled this guide to investing in both the good times and the bad.
- Price Matters
When looking for an apartment or house, the most important thing to do is stay in your price range. Viewing properties that you cannot afford will only make you feel that your search is futile. This is ultimately inefficient and counter-productive.
Don’t focus on that luxury, newly-renovated apartment in the most expensive neighborhood. Get creative, and look at neighborhoods that have a lot of potential and homes that might need a little work.
Keeping an eye on real estate that falls within your budget will relieve most of the stress related to investing in a new home. When buying real estate, stress can come at you from all directions, so minimizing it should be your first concern.
- Get Out of the Center
Oftentimes, we base our real estate search on our ideal neighborhoods. This is a smart strategy, because for most of us, purchasing a home is long-term investment, and you must at least like the area where you make your purchase.
That said, broadening your search to include neighborhoods outside the center is smart as well. Remember, if you love a certain neighborhood for its convenience and centrality, most likely others love it as well. This means that the property values of said neighborhood will be high.
To find houses and apartments with better prices, look in less popular and up-and-coming neighborhoods. Areas such as these are great for investing because as property values go up, so does the balance on your bank account.
- Think like a Builder
There is a difference between buying a house that needs structural improvements and one that needs cosmetic changes. If you learn how to tell the difference, you will be able to find amazing deals in any neighborhood.
Naturally, some of us are not as adept at this as others, and the learning process can take a lot of time. If that sounds like you, then it would be very smart and helpful to either find a friend who knows about home construction or hire a professional.
Even if your home has recently been renovated, it is always good to keep this tip in mind. The more you know about any investment, in this case real estate, the better positioned you are to make a profit from it.
- Turn Your Investment into a Business
After following the above tips and with a little planning, you can turn your future house into a profit-making machine. Instead of buying a property that is perfectly suited for your needs, consider buying a home with extra space.
With as little as a single extra room, your house or apartment can generate a monthly rental income that can help with mortgage payments, repairs and utility costs. Rooms can be rented out to students, business people and travelers.
Additionally, with the advent of many online businesses that empower homeowners, like Wimdu.com, advertising your room for rent is easier than ever.