People think that real estate in Pakistan is the safest way to invest without any experience and knowledge. They believe in certain myths about the real estate industry and keep making mistakes. Investing in real estate takes time, experience, investment, and a good companion as a consultant or agent. Plus real estate in Pakistan can be sometimes unpredictable due to its changing economic and social conditions.
Myths About Real Estate Pakistan
While buying a property in Pakistan, there are several myths and complexities that need to be burst. First of all, you have to identify the myths and then find the breaking codes. Here, some of the biggest myths in real estate along with their breaking solutions are here.
Myth #1: Every location is a prime location
People usually think that a location with high-priced properties is the best place to invest and they usually see the location according to their different perspectives. But what they don’t know is that the developers are the ones who transform a location into a prime location according to accessibility and nearby landmarks. A perfectly analyzed location not only proves to be convenient for you but also tends to provide you with a great ROI in the future. It takes a skillful and expert team by the developers to make a location worthy enough and call it a “prime location.”
Myth #2: Prices Don’t vary much
The investors sometimes assume that the prices of villas in the whole city will be the same. But what they don’t know is that the prices are relative to many other factors like location, developers, NOC, commercial value, and master plans. Prices vary on each footstep. You cannot just compare the prices and make decisions according to your non-valid sources.
Myth #3: Consultants are the super-heroes
Mostly the investors rely too much upon the consultant, which can be devastating sometimes. You should select the consultant wisely. Sometimes the consultants tend to sell an unsuitable property just to make their commissions. Their main interest is not you, but they just want to sell the property. A good consultant will always prioritize your needs and a greedy one will insist you buy an unwanted property. Do your research also to check the consultant’s interest.
Myth #4: Getting a file means buying a property
Usually, clients misunderstand the fact that getting the file of the property after the down payment means that they have bought the property. That is absolutely a false thought. A file is just an agreement (a promise to sale) between the developers and the client. You become the owner of the property, once you clear all your payments and the society has done it’s development.
Myth #5: Consultants Are An Extra Burden To Budget
When you decide to invest in real estate then people around you will recommend you to find the property on your own to cut down the consultant’s fee. Plus they tell you that consultants are not fair with their clients and they are selfish about their margins. That’s a myth and a reality, both at the same time.
Consultants are the experts in market. It’s more like selecting a doctor. Yes, there are some bad doctors too. And you have to be careful about choosing your consultant.
Real estate agents and consultants are aware of all sorts of changing situations in the industry, they will always tell you more facts than you can ever imagine, and they care about their agency’s reputation to get long-term clients. So, it is always preferred to enter the real estate industry with a helping hand of a consultant or an agent.
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Myth #6: You will earn right after investing
A person entering the real estate industry with a rush and excitement thinks that he will start earning profit right away. That’s a myth. Everything good takes time. You will have to wait for different buying and selling procedures, choosing the right property, choosing the right tenants, and many more things that should be considered. Properties go through their maturity time frame. Thinking about getting the returns and immediate profit is a rare event that only takes luck. But you cannot sacrifice your precious investment in the name of luck, right?
Myth #7: The winner will remain a winner
The winners will remain winners. The fact that, if any developer has delivered a successful project in the past doesn’t ensure his current performance and efficiency. We cannot trust anyone blindly without doing any research. We have to check the chosen location, legal status, offered facilities, and many more facts. The investor cannot risk his money just because of the good reputation of the developers.
In Pakistan, many real estate investors face problems due to some popular myths. They not only believe these concepts but also act upon them and eventually end up having major losses. So, here we bashed some common myths for you. It only depends on the instincts and skills of a person to break the lame norms and step ahead to pave the way to a successful future.
Amanah.pk is striving to make sure that you get these real estate myths debunked. That’s why we also offer Real Estate Consultancy service, but of course with transparency, trust, and value-orientation.