Buying investment property can be daunting and overwhelming for first-time buyers, there are multiple options to choose from and many factors to take into consideration. But even though it might seem overwhelming in the beginning, it is pretty easy if you follow proper steps.
Fear not I am here to make things simpler and show you all the necessary steps you need to follow in order to buy an investment property, so the steps that are recommended to be followed are
- Market Survey:
Do a little research when investing your savings in an investment, your first step should be to constantly accumulate all the facts regarding that project.
To make things easy to understand let’s take an example of Mr. X who wants to buy a property, his first step would be to do a market survey and find every project or housing society available or that he likes or might find interesting.
- Selecting Best Project:
Second step would be to apprehend the market, the pros and cons and shortlist the ones that are meeting the shape for your standards.
For example here Mr. X would filter out the list he made in the previous step according to his requirements for example he wants the property in Islamabad and he wants it near the airport, he would shortlist the list according to that.
Third step should be to locate best project within your budget, decide what your fee range is and how you can find a way to turn that investment into an asset.
Like after shortlisting Mr. X would check his price range and then see which property is in his range and might be profitable for him in the future. Like properties or projects that are in development phase.
- Decision Making:
In this step finalize what you want to invest in and make a final decision based on the research and analysis. Some of the element that should also be taken into consideration are the Reliability of Project, Owner’s Reputation, Permissions and legal Aspects and Maturity of Project.
Here Mr. X will make the decision and choose a property, he has already filtered out the initial list of properties according to his preference and budget now he would want to do a background check of the properties to make sure he is investing in the right place. In this step he would choose the property he wants to buy or invest in, let’s say he chooses The Life Residencia Islamabad, a society that is in development phase, near the International airport and Islamabad motorway, has natural lakes and modern infrastructures giving a luxurious life-style.
- Approaching company:
The next step is to approach the office of the society or the authorized company from the official society for the booking of plots.
Since Mr. X selected the Life Residencia Islamabad he would go to their office, which would either be in Islamabad or at their site. Mr. X would choose one of these offices and visit them to start his buying process.
Then next it important to locate an agent who’s expert, sincere and professional in his dealings. So they can guide you primarily based on their expertise, experience and skill.
Mr. X will have to find an agent to help him, either through The Life Residencia head office or get one from outside, in either case it is important to get an agent who would sincerely help him to proceed further.
- Land Inspection :
Look at the land you are about to make an investment in and get others expert opinions as well. Area and location is most significant in real estate so do not skip this step. You might want to look for yourself the good scenery or accessible location, and these can only be checked by visiting the location.
Here Mr. X will visit The Life Residentia location site to get a better picture of the society.
- Come up with Down payment:
Next come up with the down payment after you are completely in sync with your decision. You can either submit a cross cheque, make a pay order, transfer the payment online or pay in cash in hand. It’s up to you to choose a method of payment.
Mr. X will pay the down payment in this step in order to start the documentation procedure.
- Coordination with Paperwork :
Then ensure all of your important documents are in order and compiled, and ready for submission. It is advisable to check the authenticity of the documents before moving further.
Here Mr. X will prepare the necessary documentation, revise and check everything and then proceed to finish the process.
- Closing the deal:
The last step of the process of purchasing the property is closing the deal, meaning sign the paper work, close the deal with your broker and the property is officially yours.
Finally here Mr. X will sign the papers and close the deal. The property, let’s say a plot in The Life Residencia society now belongs to Mr. X.
These were the necessary steps and though they may take some time, they are pretty simple and easy.