3 Big Risks Of Property Investment



Property Investment is one of the most popular types of investment in the whole wide world. Stocks and Bonds are also quite eminent forms of investment but they are far riskier. The market can crash anytime and the money invested goes all to waste. Whereas if you invest in real estate, the probability of loss is very low and even in the worst-case scenarios, the amount invested remains the same. This means that if your asset could not turn out to be profitable, it still holds a monetary value.


However, with great investment comes great risk. Here is a list of 3 major risks that are attached to real estate investment:


  1. Unauthorized Dealers / Societies

  2. Dishonest Owners 

  3. No profit 


Unauthorized Dealers / Societies:

The worst and one of the biggest risks of investing in a property is the inauthenticity of the dealer. The broker or dealer, from whom you are purchasing the asset of interest, can turn out to be a scam. Such dealers either run away with your money, once the deal is sealed or provide no after-sales services if you experience any sort of inconvenience. 


Similarly, if you invest in a society that is unauthorized, which means it hasn’t gotten its No Objection Certificate (NOC) approved by the relevant authority, you will experience incomparable monetary loss. So before putting your money in a residential project, make sure it is an authentic & authorized real estate agency. 


Dishonest Owners: 

If you are purchasing a piece of land or a house and intend to make it a source of income, then cross-check the credibility of its owner. Transparency is very important from the owner’s side for the process to be as hassle-free as possible. If the owner is dishonest and hides some major flaws of the property then you will end up spending your money on an asset that doesn’t even hold as much of a market value. 


No Profit: 

Last but not least is, no profit at all! This is a nightmare for any investor out there. Most housing societies promise high returns but fail to deliver facilities and features that will increase the value of your asset in the market. Apart from that, inaccessible and far-off situated societies also lose their worth over a period of time. This results in a less or no profit kind of situation. 

Another factor that can leave a negative impact on your property’s net worth is no renovation. If you have bought a house or an apartment and have never tended to the fixtures it requires, then most definitely its price would experience a sudden decrease. 


Conclusion: 

These are the major real estate risks that should be avoided at all costs if you want to generate a handsome amount of profit out of your asset. In order to prevent these from happening, keep yourself well aware and updated regarding the current market trends. In addition to that, thoroughly investigate the owner of the society you wish to invest in Park view city Islamabad, or reside in Lahore park view, Smart city Lahore investment plan, and Capital smart city Islamabad considered among best investment societies.


Hope this article was helpful to you. Wish you good luck in all your future investment ventures. Adios! 

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