Tips for buying your first rental property in Pakistan
Rental properties are one of the best and most common real estate options available in Pakistan. Rental properties not only provide you with a passive income stream but also act as a perfect way to secure your hard-earned money in the long term.
If you are looking for a rental property in Pakistan, this blog is perfect for you. This piece will explore tips and factors needed to investigate the ideal rental property in Pakistan.
To know more about these tips and features, keep on reading.
Location is the most important thing you see while looking for rental properties in Pakistan.
Before investing your hard-earned money somewhere, make sure you know all the small details about the location.
Certain areas and housing societies have beautiful houses, but they lack basic amenities and facilities. For example, some areas may have good infrastructure but not proper gas connection or water supply.
Apart from the central location, the neighbourhood also matters a lot. The community determines the types of tenants and their vacancy rate and creates an ambience for the place. For example, if you buy a rental property in an area near a university, the chances are that your pool of potential tenants will consist of students, teachers and parents of students studying in the nearby educational institutes.
Before buying your first rental property in Pakistan, make sure you explore the educational institutes nearby. Rental properties that are located near educational institutes get a fair amount of potential consumers. People who have school-going kids or teenagers in schools and colleges prefer getting a house closer to the educational institute. Hence, the demand for your rental properties will be high, and you will be able to get an excellent rental yield.
A safe and secure environment is crucial for the physical and mental health of its residents. Try not to put your money in places that have a high crime rate. Before buying your property, make sure the local police or local development authorities have accurate crime statistics for the area. Also, you might want to know about the frequency of police presence in your neighbourhood.
It is seen from past trends and ongoing market conditions that growing employment opportunities attract more tenants. To elevate the demand for your new rental properties in Pakistan, make sure you research a lot and explore all the places where there are many office going people.
For example, if you come across an announcement about a big multinational company moving to a specific area, there are high chances that the rents of its nearby residential regions will increase because of the high demand for rental properties.
After making a list of your potential buying options, plan a tour of the areas and explore the parks, restaurants, gyms, hospitals, schools, bazaars, movie theatres, public transportation, and all the other perks and privileges that may attract good tenants.
Also, make sure that the area has good infrastructure, including good roads, sewage system and power supply.
Try to invest in a housing society in Pakistan that has future developments in line. To know more about the developments of the specific housing society, you can go to the municipal planning department to have information on developments or plans related to that area.
For example, if there is a housing society in Pakistan with much construction, it is probably a good growth area. Also, make sure you keep an eye on those developments, which might hurt your rental property.
A number of Listings and Vacancies:
“Tenant placement can be the difference between making money on your investment or not. Other companies place bad tenants, then charge you repeatedly to fill the vacancies.”
While hunting for a rental property in Pakistan, make sure you use real estate websites and real estate portals. For example, if you come across many listings on a portal, it may suggest that the area is experiencing a seasonal cycle or decline in the neighbourhood.
If you are looking for a house on a budget, you might want to explore areas with high vacancy rates. But, before considering these areas, make sure to explore the site properly. Usually, these areas lack specific amenities and facilities that cause the vacancy rate to go up. For instance, the area might be far from local transportation; it may have gas and electricity issues. The high vacancy rate also suggests that landowners will lower the rents because they cannot find a lot of potential tenants. So, before moving into such areas, make sure you do your due diligence.
On the other hand, if an area has a low vacancy rate, the house owner might now lower the rents because their property might be in demand.
Rental properties must have high rental yields. Otherwise, there is no point in getting one. Right? The rental product will be your source of income. Therefore you need to learn as much as you can about the average rent of the area.
You can ask about the prevailing rental trends from the people residing in the area, or you can also take the help of the real estate agents of the site. The information collected from these areas can help you make your final decision regarding the rental property. Also, make sure any rental property you consider can help you cover your mortgage payment, taxes, and other related expenses.
Natural disasters such as floods and earthquakes cannot be overruled in any way. One should prepare his property for such disasters. Certain areas may be subjected to regular flooding. These areas also lack a pepper water drainage system which may result in a flooded house. Try to refrain from such places, and before investing in rental properties, make sure you do your due diligence.
So, these are some of the tips for buying your first rental property in Pakistan. In short, it is safe to say that investing in rental properties can be excellent for your real estate investment portfolio. There is a vast range of best places to invest in rental property in Pakistan. You can invest in apartments, houses and commercial properties to earn excellent yields. Moreover, investment in residential housing is another superb option.
Give this article a read and find your dream rental property in no time. If you have questions or suggestions about rental properties in Pakistan, leave us a comment in the comments section below, and we will get back to you as soon as possible.