House Flipping in Pakistan - Guide to Real Estate Investment

House flipping in Pakistan is one of the remarkable revenue-generating ways to earn money through real estate. You must have one person in your social circle who buys properties in ruins and then turn them into spectacular houses and sell them at better prices after renovations.

Do you ever wonder how they do it and want to learn a few tricks yourself? If yes, then you are in the right place. With knowledge and efforts in proper repairs and renovations, you can put the house for sale in the market and earn a remarkable profit.

For those who are new to the concept of house flipping in Pakistan and want to know more about it, the guide is for you:

What is House Flipping?

Real estate flipping is a strategy to generate profit quickly on purchased real estate. Usually, the property is purchased at discounted rates, and the buyer improves its look with repairs and renovations. Afterwards, the buyer sells it at better prices. It is like buying a property for investment rather than living in it yourself.

The primary aim of flipping property is buying at low prices and selling at high rates. So the only property in which the investor is interested will be for sale in the near future to make a profit, not for living purposes.

Tips to follow for successful house flipping in Pakistan:

 Let’s look at a few of the dos and don’ts you should consider before flipping real estate.

Consider budget and costs:

Property business needs finance and a proper amount in your bank account. The first cost you will bear is the cost to purchase a house. The easiest way to invest is through a mortgage. Do a thorough search on financing options and determine which mortgage type is best for you. You can use mortgage calculators to compare the interest rates offered by different lenders.

Paying cash for the property:

People with sound savings tend to pay cash for real estate, and it is a significant step to eliminate interest costs. However, property purchase is not the only cost you have to pay; there are costs involved like property holding costs, renovations and maintenance costs, etc.

So, when you are planning to buy a home and then sell it on profit, consider its repair cost too, and while selling, the sale price should exceed the price of purchase, repair, renovation, and maintaining costs. Last but not least, “do consider the taxes you have to pay on sale and purchase of the house.”

House flipping needs time:

House flipping is a revenue-generating method, but it needs money and time. Every step in house flipping needs time and patience. First, you have to find the right property, and it can take months. Once the property is found, renovations and repairs will be time-consuming. Even if you hire someone for repair and renovation jobs, you would expect to monitor the activity and paying others will also cost a fortune.

After the renovation is completed, an inspection is scheduled to get a certificate for your building before you sell it. Then the house is put on sale, and the process is again time-consuming. It is an adventurous business for many people, but for several, a regular day job is way better. So before plunging into the house flipping business, decide what your preferences are?

Information on real estate:

Information about properties and real estate is a must in a house flipping business. To be successful, you should know how to choose the right property. A right property means real estate located in a good neighborhood, a house that will be profitable after renovation and available at the right price.

You should know the right renovations you should give to your purchased house and which one can be left. Knowledge about taxes and laws and knowing when to sell is necessary before your investment is wasted.

Have Patience:

Patience is a key when dealing in the real estate business; as someone new to the market, people are overwhelmed and make mistakes. Buying the first house they see on sale and then hiring contractors to deal with the problems is among the few.

The real estate industry is a vast market, and every step from buying to selling needs research and patience. Professional real estate sellers focus on selling a house themselves rather than hiring contractors. It helps to minimize the cost and increase the profit. Real estate agents are a big help, but relying only on them is not wise.

House Inspection:

 House inspection for electric wirings and connectivity is also a must. Check that the electric boards are located in the proper place in every room and required area, like kitchen, bedrooms, bathrooms, living room, etc.

You can hire an electrician to check everything is working accurately or need repairs. Moreover, check for fire alarms and carbon monoxide detectors to see whether they are working fine or not. Replace batteries if necessary.

Utility connections:

Utility connections are a necessary part of every house. When you get a new house, you will need gas, water and electricity. In Pakistan acquiring a gas connection takes several months. So, if you are investing in a house without supplies, make sure to check the status of connections and contact the companies in advance to transfer services to your new home.

Have complete required documents:

While dealing in properties, you should have all the required documents with you. It can save you from several legal issues in the future. Make sure that you are buying property in CDA, RDA or relevant authorities approved housing society

Consult professionals:

Last but not least, consult a professional for assistance in your new real estate business. A professional will guide you in the process of buying and selling. You might have done all your research, but there are a few technical tasks and document handling which can be done smoothly with the help of a reliable real estate agent.

That’s a wrap! I hope the blog has answered many of your questions about the concept of property flipping in Pakistan. Flipping real estate is undoubtedly a successful way to earn from the real estate only if you have followed a proper strategy and devote yourself to the business.

Visit Reall.Pk to find best options for investment in real estate in Pakistan. Share your feedbacks and queries at info@reall.pk. For latest news and information stay tuned to Reall.pk blog page.