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Investment
I'm interested in real estate as an investment. Where should I start?
In general, there are two major ways to invest in real estate: Owning rental properties and buying & selling real estate properties. These two are traditional ways of investing in real estate. Investors who buy rental properties typically make money in real estate by buying a house or two, fixing them up and renting them out. They may keep the properties for years, until they appreciate enough to sell; or they may keep them as long-term investments that generate cash flow over time. On the other hand, investors buy houses, renovate them, and sell them for a profit.
Why should I invest in real estate?
Aside from the very obvious reason that real estate provides a steady stream of income, there are many other reasons. Real estate is a tangible asset. It can be used as collateral for further borrowing from banks. Real estate also appreciates over time with inflation and economic growth. When you factor in the tax benefits you get from investing in property, it becomes one of the most lucrative investment options available today.
Can anyone invest in real estate?
While there is no minimum age requirement, you do need money to invest in real estate. Other than that, the most important factor is your attitude and willingness to learn. Investing in real estate isn't rocket science. But your success depends on how willing you are to educate yourself and work hard. If you're ready to invest more time than money, then you're ready to get started.
How much money do I need to invest?
There is no set amount of money required for becoming a real estate investor. You can start out with just enough for the down payment or purchase price of the property you want to buy, plus closing costs. Once you've purchased your first investment property, you can use its equity or rental income as collateral for financing additional properties. In other words, there really isn't a limit on how much money you can end up investing — it's entirely up to you how far you want to go!
Real Estate Dictionary
What is a plot file?
A documented promise of a piece of land has a certain area size in the planned or existing housing society or a scheme to a particular property investor. Neither it has any physical existence nor is it recognized or certified by the local development authorities. However, property files are given a specific number and are converted into an actual existing plots after they have gone through the phase of balloting of the concerned housing society or real estate scheme.
What is balloting?
Balloting is the process of assigning plot numbers in a particular real estate project to possible buyers. Basically, balloting is a draw carried out between the applicants of plots and plot files in proposed property development. There are actually two types of balloting: one is known as a booking ballot in which applicants booking properties on an instalment basis take part and the other one is known as plot ballot in which balloting is carried out between buyers who are willing to pay the full amount to own a property as a result of which, map with physical allotments is issued.
Booking
How do I own a house?
You can own a house by purchasing from a private person, private builder, by allotment or purchase from public authority i.e. any development authority (LDA, CDA, FDA, MDA etc.) and by becoming a member of any co-operative housing society.
What are important documents one should check before buying any property?
Check approved layout plan, approved building plan, ownership documents, ask for all the deeds of title related to the property to be purchased, examine the deeds, ascertain the survey number, check previous encumbrances and loans, if any, on the property, request vendor(seller) to obtain, if applicable, consent permission, sanction, no objection certificate of various authorities, tax receipts and bills, measure the land etc.
What safety precautions should I take before buying property or real estate in Pakistan?
Before buying property in Pakistan a complete and thorough probe in respect of the title of the seller to the real estate must be carried out. General practice is to investigate the title of the current seller and any previous owner. Original title document in favour of the vendor must be obtained along with other relevant documents including mutation in favour of the vendor, a fresh copy of fard, aks shajra and no-objection certificate or non-encumbrance certificate as the case may be. If the vendor is selling the property in the capacity of an attorney of the owner then it must be ensured that the power of attorney is duly registered with the relevant sub-registrar. A holder of a forged and fabricated power of attorney is not at all able to transfer a valid title in an immovable property to a third party.
Consultancy
Why you should seek consultation before making any real estate investment?
The right property investment advice can make all the difference in your chances of success. Investing in real estate — whether you buy and hold a rental or flip a home — is a big undertaking that requires a lot of time, energy and capital. The good news is that there are plenty of investment opportunities available to those who are willing to put in the work. However, because this is such an involved process, it's essential to get expert property investment advice from people who have already been through the process and come out on top.