For a small percentage of investors, real estate investment is mostly about flipping property quickly to gain immediate profits. Despite being few in number, these investors sometimes set the market trends by encouraging others to do the same. Although flipping property for the sake of a gaining profit isn’t unethical, it does increase the market rate of real estate, leaving genuine buyers priced out. The practice, however, continues to benefit these investors, so they keep at it.
If you must turn to short-term investments, make sure you have the proper know-how before diving in. It really isn’t as easy as it looks.
Why is access to information crucial?
When it comes to short-term investment, there is one reservation; most investors with enough money to invest in real estate often lack the right knowledge to make a timely move. For this reason, these investors play it safe by investing in a variety of commodities. Nevertheless, the fact remains that no other sector can offer you returns as handsome and tempting as real estate.
It has also been observed that people running businesses (other than property) often like to keep their cash intact and pile it up for reinvesting in a similar businesses or expanding the existing one. Investing in real estate for the short term can help them multiply their gains in a short span of time, sometimes in just a few weeks. For this purpose, access to reliable information is crucial – you don’t want to end up losing everything just because you were looking for a quick gain!
The ideal agent
Most short-term investment decisions are based on the recommendations of a real estate agent. However, the role these agents play isn’t always perfect as they often operate in certain areas or sometimes a particular housing society alone, which limits their exposure, understanding and thus their expertise to help short-term investors benefit from the price hikes expected in properties of other housing societies and cities.
An ideal agent is one who works dedicatedly with an investor or two for the sole purpose of giving them genuine, authentic and valid information about what, when, where and why to buy or sell. Certainly, the role of an agent working solely for a limited number of clients is more demanding because such short-term investments have to be made with flexibility and without being choosy about particular developers, projects, or cities.
Other avenues of information
Once you have access to extensive information, you need to validate what is authentic. The agents or consultants you used should have access to varied sources – sources that are reliable and can disseminate the correct information.
It is hard to believe that agents with good understanding about the dynamics of DHA Lahore would be equally informed about when and why the vicinity of Sundar Industrial Estate will become a real estate gold mine for prudent investors. But there are other ways to acquire this knowledge.
You, as an investor, should keep a tab the real estate market as a whole. All important information regarding infrastructural development is published regularly in the newspapers. For instance, the approval for the development of road infrastructure around New Islamabad International Airport will certainly benefit the housing societies located in its vicinity. In this case, you should consult the respective agent and ask how these localities have responded to this news. Initiation of the development work and its completion time will determine the duration of your investment.
Keeping a finger on the pulse of the entire market, combined with the prevailing market trends, can help you figure out when should be the ideal time to buy property in a particular neighbourhood and how much time will it take to get good returns.
Zameen.com to the rescue
The absolute focus of Zameen.com on each and every aspect of Pakistan’s real estate market can certainly help you make a timely investment move. The portal shares authentic news, reliable analyses and opinions of experts from across the country.
To become an ideal investor who gains good profit from each real estate transaction, you can closely follow the expert discussions on Zameen.com Forum, read Zameen News and Blogs and consult the agents registered on the portal to gain insights.
People who possess liquid capital shouldn’t just keep it; they should try to make more money off of it through short-term real estate investments that are made after careful market research. If you don’t have time to undertake such a demanding task, hire someone competent who can keep in touch with agents, religiously follow news sources, and closely monitor Zameen.com to know exactly what to buy and sell and when.
If you have any thoughts to share with me in this regard, please leave a comment below.
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