There could be many ways of becoming rich in the world but the most trustworthy tool is real estate which has made millions of people billionaires.
But, here is a catch. Not every property is worth buying. The price of any land may increase in a few years, but, the true real estate potential is much more than that.
Everyone knows real estate prices increase fast in Pakistan. The price of any property bought today will increase in a year or two, this is called real estate appreciation. But there are some proven additional ways, which may triple your investment in a few years.
Although the real estate market fundamentals are the same across the globe, but the different tax structures and relative laws make the Pakistani real estate market unique.
If you consider the points mentioned below, while buying a property in Pakistan, you can become rich in a couple of years.
Location is the second most important factor when making any property buying decision in Pakistan. If you buy a property in any developing area, your property will appreciate much fast as compared to the already developed sector. For example, if you buy a property in the developing sector, B17, you will get it at a lot cheaper rate as compared to the already developed sector F-10, but in a year or two, it will be sold at a much higher price as compared to similar property in F-10. It means you will have a high return on investment.
In B-17 you will also have value for money in the shape of new construction, wide roads, zoo, club, and parks, along with a unique experience of community living. Likewise, a property located on a corner, or near a lift in any highrise is considered prime and fetches the more rental and resale value.
- Government Approved Projects
Invest only in those new projects which are government approved and whose builders have a track record of delivering real estate projects in time. If you are buying property in some already established sector of CDA/RDA check the record of owners from the Tehsildar office/patwar khana, whether the land is free of litigation or not.
- Instant Equity Finding a property below market place is an excellent way of multiplying investment. For example, if you searched intelligently, and found a property for Rs. 9 million, whereas its actual marketplace is 10 million, you have saved Rs. 1 million instantly. That profit will multiply with time. If you buy a shop or apartment in an upcoming mix-use high rise, at the prelaunch stage, you can be benefited from instant equity.
- Positive Cash flow
Rental value is one of the most important factors which may boost your return on investment. But, it does not include the rent offered by the under construction projects. In recent years, as a clever marketing strategy, under construction projects have started offering rent at 30 per cent booking. How one can offer rent when the project has to be completed in the next 4-5 years. Don’t be a fool, they are paying you rent from your instalments.
If you want to get all the above leverages, in a single property, Safa Burj Mall, the third tallest building with modern amenities could be your ultimate choice.