Thinking about buying a property in Karachi? Investing your hard-earned money in real estate is always a good plan. Considering the rising inflation in Pakistan now might be the best time to make long-term investments and secure your future. Buying an investment property can be an enthralling and exciting experience only if you make the right choice. Although the overall fundamental real estate is expensive in the metropolitan city of Pakistan. Still, if you have done your research right, you won’t have trouble finding a property that serves your interests.
So, if you need help making this enormous life decision and want to ensure you don’t make a mistake, here is everything you must know.
7 Characteristics of a Good Investment Property in Karachi
When investing in real estate, you must always do proper research, get in touch with real estate experts, and get as much guidance as possible before taking the plunge. Several new projects in Karachi are currently underway where you can invest immediately. However, before you take the chance and splurge, you must consider a few characteristics of an excellent investment property.
Perhaps this is the most obvious when you’re searching for a property to invest in; nothing comes close to the importance of location. If you have found the location, then half your work is done.
Look around the neighborhood and consider how far the location is from the central city. This will determine how much your tenants may pay you monthly for the rental and the vacancy rate.
You must also consider all the amenities and services offered by the council of the said area. If they are offering security, maintenance, and customer service, it’s a good bet.
2. Development and Infrastructure
Do you plan on renting out your property soon after the purchase? If so, you must look for an apartment or a house in a developed area. There is hardly any chance someone would move into your rental if the area or neighborhood isn’t developed enough.
Ensure electricity and gas are available so the tenants don’t have to think twice about the purchase. Also, the roads, nearby shopping malls, parks, town halls, and libraries significantly affect how soon your property will rent out.
3. Property Tax
Another aspect that you must consider is the property tax. This will vary from area to area. Most people believe that higher property taxes are terrible, which isn’t true. There is no problem paying a higher property tax if your property’s location attracts long-term tenants with an impeccable rental quote.
However, remember that some unappealing locations also have higher property taxes. So, while buying yourself a house or an apartment, ensure its property tax won’t leave you empty-handed and is worth the purchase.
4. Should have access to Schools and Colleges
When buying an investment property, consider all the things you would look for yourself if you were supposed to rent a home for your family. You will likely want to ensure your kids can conveniently access local schools and colleges.
So, this is another characteristic of a suitable investment property in Karachi. While you’re on the hunt, look for neighborhoods that offer maximum ease of access to local schools and colleges. It will make things much easier for your tenants, who would be interested in renting your property.
5. Lower Crime Rate
Another critical thing to consider when buying investment property anywhere in the world is that the locality you choose should be protected well enough. Nobody wants to live in a neighborhood where there is no guarantee of their lives.
Seeing how the crime rate is rising in Pakistan, you must ensure the neighborhood you have chosen offers a 24/7 security and surveillance system. This is another imperative aspect that most tenants consider before choosing a rental.
So, if you’d like your property to be rented out sooner, you must ensure you’re purchasing it in a safe and sound locality for residents.
6. More Job Opportunities in nearby areas
Only a few people like traveling hours to get to work. They would like to choose a rental that is close to their office. Thus, making travel more accessible and more convenient.
So, another characteristic of a suitable investment property is that it has a massive job market in the surrounding area. For instance, if you find out a new company is moving its offices to a specific location, be sure that new tenants would be looking for places in the same area.
This can be your go-ahead to purchase an investment property and rent it out to the new residents looking for accommodation.
7. Generates Average Rent
Buying a property may seem challenging, but it isn’t as challenging as finding out later that your property doesn’t offer sufficient rent in the market. Once you have purchased accommodation, your source of income will depend entirely on the rent.
So, before you decide, find out the average rent in that area. Ensure that any property you purchase will make sufficient rent to cover your mortgage, property tax, and other expenses.
Do your research and talk to a real estate expert. Figure out where the market is headed in the next five years for the said location. Whether the prices will go up or will it decrease. This is extremely important if you don’t wish to blow a hole in your bank account.
Finding an investment property when inflation is at an all-time high can be tricky. However, having all the correct information can make this challenging task relatively more manageable.
Once you have purchased it, insure your property to keep your money safe from natural disasters. You can always contact the official sources to get all the necessary information. However, talking to the neighbors will help you give an inside scoop into the livability of the location.
Hopefully, this article has provided you with all the information you sought. If there is anything else you’d like to add to this conversation, do leave your feedback below.