Why Crashing RealEstate Market?
Key Secret To Earn Money In The Crashing Pakistani Real Estate Market
Why the Real Estate Market is Crashing?
The real estate market in Pakistan is facing a downward trend for quite a long time. The market started going down back in 2016 when the PML(N) government imposed hefty taxes on real estate transactions. The new taxes on sale and purchase of the property by the previous government effects market progress badly such that the market has not recovered till now. After the general elections 2018, the economic policies of the PTI government caused the high-interest rates of banks, which ultimately proved to be the final nail in the coffin of already sinking real estate business.
How Interest Rate Influence Real Estate?
If the investors get observe low-interest rates in bank. They tend to pull out money from banks and prefer to invest it in the real estate market for bigger profits. However, if the interest rate in banks is higher, investors will avoid to invest in real estate and prefer to put money in banks for bigger profits.
Currently, the interest rates in Pakistan are at their peak. Therefore, investors have kept their money in banks instead of investing in real estate.
Demand & supply Rule
The demand and supply rule is very simple to understand. Whenever we have more supply than demand. The prices decreases. Similarly, when we have less supply than demand. The prices eventually increases.
Currently, we have more sellers in market as compare to buyers.
Secret To Earn Money In Current Market
In real estate sector, there are basically two type of investments
- Long Term and
- Short Term
The falling real estate market is the ideal time for long term investors to jump in. If you’re looking to make a long term investment, this is the best time to invest. The real estate market has ups and downs. It’s currently falling but it will eventually rise. In this scenario, the real estate prices are at their lowest. You can purchase property in significantly less price. All you need to do is purchase, sit back. hold it for quite some time and enjoy the bigger profits once market will start to boom again.
If you’re looking to make a short term investment, then this will be a little trickier matter at this point of time. A profitable short term investment at the moment demands a continuous connection with market. Despite the fact that market is steady and there is no need to get updates for short interval of times. This situation allows you to make an attractive deal for less than the market value. This is the time to take decision. Get the property and resale it with profit. For instance, you can get the property having market value 4 million in 3.5-3.6 million, and sell it anywhere around 3.7-3.9 million. This is how you can earn money with making this deal lucrative to your customer as well.
If you’re interested in short term investments, you should look out for sharp real estate brokers. They can also help you in getting lucrative deal. Connect with the reliable broker and ask him to continuously update you about the market situation. So that you can instantly grab the opportunity whenever available.