Afraid of investing in real estate? Dont let this stuff hold you back!

I am sure you will agree with me when I say that there is no place like home. Owning a property these days holds immense significance because it gives you a safe and sound roof to live under. Also, it protects you from the sky-high rental expenditures that you would have had to incur had you been living in a rented home.

However, when it comes to real estate, some people are still reluctant to invest. What are some of the concerns that people have that cause them to let go of good and feasible investment opportunities? Let’s have a look at some of the reasons that impede peoples’ investment decisions.

Fear of falling property prices

Many people are of the view that property prices are vulnerable to fluctuations based on the state of law and order or the performance of the economy in general, and that there is a good chance that prices will fall in the near future if Pakistan’s state of affairs remains the same. However, it is interesting to note that in the aftermath of the anti-government protests in Islamabad which started in August 2014, prices remained perfectly stable and even continued to rise in many areas.

What are some of the economic factors that lead to falling property prices? Economic recession and the resultant high unemployment are two of the major reasons due to which the demand/supply balance is disturbed. Simply put, when one doesn’t have a livelihood, buying property is the last thing on the list. This may lead to only a marginal fall in prices, because the effects are largely limited to the ‘genuine buyer’ category, since investors rarely rely on pay cheques to finance their investment activity.

Fear of land-grabbers

Land-grabbing in Pakistan has created fear in the minds of people. While some of us have directly experienced illegal occupation of land-grabbers, others are somehow linked to people whose property was encroached upon. In either case, the fear has set in, thereby leading to the idea that investing in real estate is a bad idea. However, the as long as you have done your homework and are buying in an established, encroachment-free area, you should not fear land-grabbers.

Lack of real estate knowledge

Where to invest and how much to pay are some of the questions that people ask when they plan to purchase a property. If they are unable to figure out the answers, they give up their decision to buy a house altogether. This means that people are unable to see the bigger picture associated with investing in property. The truth, however, is that property prices haven’t really gone down in a long time now, so it is nearly always a safe bet.

Fear of being misled

People who want to buy a house can also change their minds if they are unable to find a real estate agent who they can fully trust. Either they don’t like the house that the agent is showing or they think that the commission is too much. To remedy this, I would recommend you head over to the Zameen.com Trusted Agents section. where you can find thousands of reputed real estate agencies you can trust.

I am sure now you have a fair idea of what causes hesitation among people when it comes to real estate. In order to make a good decision when purchasing property, do some thorough market research, ask various real estate agents, look for safe locations to invest in, and consult people who have recently bought a house. The more knowledge you have of the market, the better your decision will be!