Why is it so difficult to purchase a home?
Are you considering purchasing a home? Everyone else is as well. The property market is trending right now and shows no signs of subsiding relatively soon.
Property values have gone up majorly, with 5 Marla-constructed homes sold for as high as 2 Crores in the last year. What’s the reason behind this real estate purchasing craze? If you’re a potential buyer, there are various factors you should keep in mind to help you keep up with the competition in the market.
You may also like to learn about the Kingdom Valley Master Plan.
Why are residences so in demand?
With new job opportunities emerging daily in the city, people are migrating from around the country. As a result, the demand for constructed properties is very high. However, new housing societies are launching every few months and offer built homes and apartments at meager rates.
Many investors aim to take advantage of the low prices. In contrast, others seek to expand their living quarters while working remotely.
The majority of agents have claimed that half their clientele is only purchasing because of the affordable price plans. Although COVID-19 has brought about these momentary adjustments, it encourages people to make long-term investments.
Property supply is also limited, which suggests that the cost of a house will continue to rise. Furthermore, contractors face challenges with COVID-related building setbacks and increasing building material costs. The cost of specific building materials such as wood has dramatically increased since last year.
Springtime is traditionally the peak time for buying a house. The mixture of a large number of interested purchasers and a small number of available properties has resulted in a very competitive market. Realtors reported nearly 50% of all properties on the real estate market are gone in less than ten days.
Consumers will have a difficult time finding suitable housing due to a lack of available inventory. This results in many individuals being forced to make concessions. According to realtors, people take money out of their pension plans, sell stocks, or request cash presents from relatives to buy the properties. Several people are even willing to pay in whole for properties.
How hard is it to buy property?
Buying a house is challenging but still a possibility. You will have to research a lot of things thoroughly before purchasing a home since it’s a significant investment and requires big money.
Here are a few additional pointers on how purchasers might gain an advantage in the property market.
Keep your expectations in check.
It would be best if you only browsed properties, you can actually afford. Even though most buyers get caught in bidding wars after looking at a house, you shouldn’t make a bidding offer you cannot afford. If you have to make a higher bid, it is essential to keep your savings in check. Otherwise, it will land you in an awkward position where neither you nor the party can buy the house.
Make sure the funds are in order:
To decide whether or not you can apply for a home loan, lenders will generally go through your bank balance and transaction history, and your source of income. Before you can apply for a loan, it’s best practice to keep your spending to a minimum amount.
Make a significant deposit on the house:
if the deposit or the down payment for the property is a hefty sum, it can reduce the amount of your home loan. If you pay a small amount as the down payment, the property loan amount also increases.
Consider an area with less competition. The property market in Pakistan is trending majorly right now. Still, some locations are in higher demand as compared to others. Suppose your top priority is to find an affordable house with little focus on the area. In that case, realtors suggest exploring in a less expensive and competitive neighborhood.
Muhammad Junaid is a CEO of VM Sol, senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in Kingdom Valley Islamabad. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.