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Steps and Tip to Buying Property

Buying a Property

The Pakistan real estate market has been booming for several years – the prices for living space are “booming” like crazy. Anyone who wants to invest in real estate today is therefore dealing with a competitive market, and in many places, demand still far exceeds supply.

Step 1: Save equity

The more equity you can raise, the easier it will be to finance the property later on. Therefore, you should start saving as early as possible and also improve your creditworthiness.

Step 2: Plan financing

Even before you actually start looking for a property, you need to be clear about the size of your investment: do you want to start small with a one- to two-room apartment, or do you start straight away with an apartment building?

Professional Advice: Buying a Plot in Capital Smart City Islamabad 

Step 3: Agree on the purchase price

Once you have found a suitable property, it now becomes concrete: you must secure the real estate financing from your bank and negotiate the final purchase price. Once that is done, the next step is the appointment with the notary.

Step 4: Notary appointment & handover

After the notarial purchase contract and the entry in the land register, you are officially the property owner. In addition to the purchase price, the payment period is also recorded in the notary contract. As the owner, you can now start looking for tenants

Step 5: Optional Upgrades

Additional refurbishment or renovation measures may be worthwhile prior to letting. Small changes often result in an apartment being much more attractive for the new tenants: if the walls are properly painted or the bathroom is newly tiled, a higher rent can often be achieved.

Tips for prospective real estate investors

Tip 1 – The Entrepreneurial Mindset

For many people, buying a property is like fulfilling a lifelong dream. This may be the case for properties you use yourself, but if you look at it as a capital investment, the topic should be viewed rather unemotionally.

On the other hand, it is better to promote the “property project” as an entrepreneurial business model. And as with any business, the “return on investment” has to be right with concrete gold: How much of the time and work you have invested will you be paid back in the future?

Tip 2 – Estimate the time investment correctly

Trading in real estate is not as entertaining as, for example, buying and selling a share. Instead, the investment in houses and apartments is immobile – which means that you are usually tied to it for several years.

And industry experts know: The profit from a property lies in the purchase. Accordingly, a lot of time must be planned for the search for suitable objects so that the bargain does not suddenly turn out to be a cost trap.

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