As time evolves, the myths that surround us also develop. There are particular myths about every field. The real estate sector is no different. The real estate sector has believed to be the most profitable industry worldwide. Moreover, real estate is the only industry growing even during the pandemic. In Pakistan, real estate is the only sector that is increasing day by day. Many developers and investors have invested their money in real estate. As new urbanization is expanding, there is a huge need for the growth of this field. As this field progresses, the myths about it are also increasing. In this blog, we will discuss some common real estate myths and truths about them.
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The Real Estate Sector and Our Future
Pakistani citizens invest in the property market as they consider that doing so will be a precaution for their investments. However, the preceding administration’s high taxation on the property industry caused development trends to decline, leading to the industry’s contribution obliteration. Nevertheless, the property market in Pakistan contributes to growth, showing expansion even if FDI declines or infrastructure improvement is still sparse. The World Bank estimates that the property industry assets account for between sixty and seventy percent of the nation’s wealth or between three hundred to four hundred billion dollars.
It is Pakistan’s latest and finest way to get a job. Along with creating direct jobs, it also boosts demand across more than four hundred different economic sectors, from building (including concrete, metal, paints, construction materials, designers, and city planners) to finance. But unfortunately, the state imposes rigorous demands and rules to demonstrate the money-trail underlying capital invested in this sector during the last two to three years. In addition, the administration raised several taxes, specifically on purchases and sales. As a result, this industry has experienced a terrible financial recession, many real estate consulting firms have closed their doors, and today millions of individuals working in this industry are jobless.
Why Is Property So Expensive In Pakistan
A common myth in Pakistan is that property investment is only for elite people. Investment in this sector will need a generous amount as the properties are costly and out of reach of middle or lower-middle-class individuals. But we may also get a sense of it from the numerous housing cooperatives around the nation. The inflationary factor is also taken into consideration by the builders. As a result, several residential properties provide the most competitive pricing range to the nation’s residents.
The best illustration is Kingdom Valley Islamabad. Although it is a well-known project, this residential venture is a part of the Naya Pakistan Housing Scheme, which aims to give everyone access to first-rate living areas. And finally, several additional affordable housing initiatives are available to assist buyers from all socioeconomic groups in making a real property investment. For more detail, contact Meta Marketing. Our consultant will show the customers the best affordable housing venture for our customers.
Only Invest In Developed Areas
It is also a misconception that investing in underdeveloped regions is not beneficial. Land prices will always surge. The urbanization trend is overgrowing. Individuals are relocating to big cities to secure their future. The builder knows the need for new housing development is expanding, so they start developing contemporary societies near the big cities. Investing in Society in the developing stage is beneficial as its property rates are very reasonable now. Once Society completes, its prices will increase significantly. At that time, if buyers didn’t want to reside in Society, they could rent their property and earn the best rental income in Pakistan. The rental income will cover the instalment cost, and the buyers can save or reinvest it in the property.
The Builder’s Brand Is Not Significant
It’s also a drawback for the buyers that they will never give importance to the builder’s brand. Therefore, before investing in any residential venture, it is imperative to see the previous success record of the Society developers. Experienced developers know how to complete projects on time and within budget. There is a good possibility that your investment will fail if the venture you decided to invest in is unknown or uncertain. It can result in a set of economic setbacks. We are not attempting to dissuade you from buying real estate by raising awareness; instead, we are trying to highlight the reality that a property investment demands careful research and your focused time. Make sure you avoid funding initiatives that are not widely known. Never make investments in projects without NOC approval. Regardless of how often they assert they are secure or mention getting such authorization later. Investing in a Society whose legitimate and its developers are renowned can offer you a high rental yield in Pakistan.
Real Estate Consultants Are Unreliable
The idea that real estate consultants are not reliable is one of the more well-known real estate fallacies. Additionally, this is yet another untrue misconception. The investors’ reluctance to disclose all pertinent information is also due to this. Additionally, it occurs due to the abundance of existing property managers that are presently accessible and the rise of unlicensed agents that give off a wrong impression to buyers and developers. Not all buyers make this type of investment regularly. And since this is a lifelong investment, advice and thorough planning are needed.
Nevertheless, all buyers must do market research before speaking with and contacting any property agent. Therefore, it is essential to consult a professional who knows about real estate in Pakistan, real estate problems in Pakistan, and real estate problems solutions. Meta Marketing is an experienced real estate consulting firm with vast knowledge about these issues and their resolution. Contact us now!
Untrustiness To Digital Platforms
The other real estate misconception is that individuals cannot purchase and sell digitally. As time evolves, everything is going online. Additionally, the pandemic has forced people to turn to digital sites. Builders and buyers have also profited from the change. And as we all understand, the real estate industry has experienced remarkable growth and lucrative investment prospects even when other company models fail. Paradoxically, the development of internetwork has also led to increased scam incidents.
To learn how to prevent frequent real estate scams, you must visit the property’s website. Further, get the best advice and knowledge from experts. Thus, the idea that digital platforms are limitless is a myth. Finally, seek reliable information and qualified counsel to prevent problems later.
The Future of Real Estate
Despite the government’s actions, there were great expectations for this industry’s development in 2020. However, at this moment, the problem is far more significant. It could ultimately lead to a massive catastrophe in the property markets of all major cities, including twin cities and districts, the heart of country Lahore, and business hub Karachi. It might be detrimental to raise taxes on a sector that could expand and influence economic expansion, such as the property industry. By first encouraging the sector, the state should widen the tax base. Then, the authorities should create a new real estate sector policy, given the circumstances.
Real estate myths are pervasive in all communities. Additionally, the Pakistani market for real estate is expanding, and buyers are researching all urban legends to learn the reality. Therefore, every investor must conduct extensive study and planning when investing or selling a property. Additionally, the nation’s real estate market is flourishing, and many successful and trustworthy developers have started magnificent initiatives here to facilitate the citizen. Lastly, the government must set up a very well, open and centralized platform for stakeholders instead of the current intricate record keeping and litigation aid.