How to overcome Common Real Estate Investment Challenges in Pakistan

Real Estate Investment is not a piece of cake, it is a hellish process of lengthy documentation, paper evidence and legwork involved to acquire a certain property in Pakistan. Property Investment is not for everyone as it requires one's patience, substantial income/reserves to purchase land or house and a lot of time to research as to WHERE he should buy property that will provide optimal results as per budget and personal choice. Also to top it off the delicate balance of real estate investment is the market ambiguity and property scams happening commonly in Pakistan. The trouble spots for property investors in Pakistan include a long itemized list i.e. Insurance, Maintenance, Property Taxes, and more collateral in order to secure a solid loan against the purchase of commercial property. Investors need to make intelligent choices that diminish the loopholes in the property system and although some difficulties cannot be thwarted smart investment can largely reduce the risk factor and ensure safety.

Investors normally have to endure traumatic phase while acquiring property in Pakistan, but if they follow strictly some guidelines they might be able to skip some headache to themselves. Some solutions to common problem strongly recommended to investors and property buyers include,

Qualifying a bank Loan can be relatively hard for people who are self-employed or who have just started their job, have a poor credit history, and/or have debt. The problem of qualifying for and getting credit is a massive one as you need to be able to purchase a rental property in order to be part of the real estate investing world. The solution to this can be paid in cash, improving credit score, leasing with the option of buying or maybe borrowing from a trusted private investor.

Affording a good down payment suppose a 20-25% is a financial problem, that needs to be secured for a better interest rate on your investment property loan. There is honestly no solution for that except early savings so that you have certain sum reserved for down payment later on when you decide to buy property.

Real Estate investment can be time-consuming and frustrating work that requires long hours of online research on location, type of property you want, which suits your budget, possibly hire a real estate agent etc. The wisest action is to start simple and do a lot of networking and research, hire an expert consultant or real estate agent/property firm who deals with investors on daily basis and hold credibility. Apex Group is one of the prestigious and reputable property firms in Pakistan that dates back to its foundations In 2015 with a team of realtors having market efficiency and vast real estate experience to guide you in the right direction

Real Estate investment is also problematic in the sense that your capital is tied up compared to other forms of investment. Once you’ve purchased a rental property, it will take time and efforts and possibly come at a loss if you decide to sell it soon because you need the money. However, if you manage to keep your investment property in the long run, it can bring you a reasonable profit and secure you a source of extra income while working your full-time job or after retiring. The solution to that could be that you can sell your rental property if it comes to such drastic times and gets the money for selling your property. Always keep some cash at hand to avoid running into liquidity issues and you should also diversify your portfolio by investing in stocks and bonds so that risk is lowered.

I hope you found the blog interesting and useful if you are wondering to invest in property, and if you seek more information or details contact us and we shall help you in any way we can.