Real Estate Myths in Pakistan and the Truth Behind Them

 

Pakistan's real estate market contributes significantly to economic growth. The Real Estate Agency in Islamabad has spread its spider web all over the country. The development of new housing ventures (e.g. Nova City Islamabad, Capital Smart City Islamabad, Smart City Lahore, Park View City etc.) has increased the demand for property management companies to invest in. 

There are certain myths in the real estate market that have led to some managers making poor decisions. Because circumstances change, but myths do not. Although most of them are not true, the hidden truth behind them needs to be understood by all the investors.

But before proceeding to any negative thoughts about investing in real estate, here are the truths about the most common myths that you should consider when planning an investment.

Myth 1: Wealthy Can Afford to Invest in Real Estate

This has to be one of the most confusing real estate myths. While it is true that you must have financial security before investing in real estate, you do not need to be wealthy to do so. You can effectively make a sensible investment if you can plan, and negotiate a decent bargain for a suitable property with profit potential.

Nowadays, the real estate market has grown to the point that people from all financial classes may easily locate a payment plan based on installments and complete a purchase in few years. They must make an initial down payment, after which the remainder can be paid in installments, depending on the payment plan chosen.

Smart City Lahore, Capital Smart City, Nova City Islamabad are examples of such practical ideas that allow individuals from all financial classes to readily invest in and obtain property that meets their needs.

Myth 2: Agents Try to Grab Maximum Commission

Several misconceptions are fluctuating around real estate agents. Most people believe that their agent is out to make as much money as possible. Real estate commissions are not regulated in Pakistan, however, on average, agents receive 1% of the sale price. Few agents will admit to working on a higher commission, but as a client, you may always bargain. Also bear in mind that if you choose an agent that is willing to work for a low commission to save money, you may end up with subpar service. Other agents may appear to be more expensive, but they will work harder to obtain you a greater price for your home.

Myth 3: Developed Project Areas are Worth Investing Only

Many buyers are likely to believe that under-construction homes are a safer investment. Because the developer is selling them at a reduced price that could increase in the future. Many people pre-book their homes before the project even begins, so that they may take advantage of it later. However, ready-to-move projects are expensive, and they may not generate a return for the owner. 

Another troubling assumption is that many believe only fully developed regions in the city's most desirable locations have much to offer. Many real estate investment projects first offer the property at cheaper rates, but as a result of the incredible facilities and services they have to offer, its market value and resale value gradually rise with time. But most of the housing projects having an ideal location e.g. Capital Smart City Location and Map, Blue World City location, etc. are convenient at a low cost. Still, under their development stage, most of the projects are worth investing in.

The most excellent examples of such viable schemes include Nova City Islamabad, Blue World City Islamabad, Smart City Lahore. They are not only inexpensive to purchase, they are in their developing stage but they also have a high resale value in the real estate market.

Final Thoughts!

Finally, we can argue that the real estate industry is damaged by these myths that some real estate managers and investors believe to be genuine. But the Real Estate Agency in Islamabad, on the other hand, employs staff who have been trained to clarify any form of ambiguity.

Apart from all the myths, there are strong expectations for the real estate sector to grow rapidly in 2022. If the real estate company you work with is professional and transparent in its dealings. Despite the many myths that surround them, it will become a viable solution.