What is the Best Time to Invest in a Housing Society?
The real estate sector of Pakistan is blooming as hundreds of different residential and commercial projects are emerging on the map. Every housing society claims to be the best among the competition, but certain factors decide the scope and success. Millions of people tend to invest in housing societies at different times, but not many get the expected returns. Investors who know about the best time to invest in housing society are way ahead of people with little or no knowledge.
The real estate sector is quite complicated, and investors need to keep different things in mind while putting hard-earned cash into any real estate project. Every real estate project whether it is a high-rise apartment project, housing society, or commercial project undergoes a series of steps and ups and downs before it is fully developed and ready for use. Although, investments can do in any stage of development, what is the best time to invest in a housing society? Well, this question gets asked a lot of times and you’ll find the answer in this article.
Here are some tips, tricks, and advice for investors to choose the best time to invest in a housing society for maximum returns on investments (ROI).
Early Stage Investments in Housing Societies
The early stage of a housing society is when the planning is going on, this is the stage where any housing society is preparing the master plans, layout maps, and planning maps that are necessary to obtain the planning permissions from the administrative authorities. The society can formally plan and design the project after approval from the concerned authorities. In simple words, it is the pre-launch stage of any housing project where developers offer plots at pre-launch rates.
Early Stage Investment Features
- In a country like Pakistan, the lifecycle of any housing society is revised from time to time and different blocks/sectors are added. Majority of the housing societies start-off by developing a small amount of land area, and then continue to acquire land, get NOC and start development. In Pakistan, most of the time is spent planning, designing, and getting approval, and then developing and delivering the project.
- A well-researched and planned investment into a housing society at this early stage is the best investment. Without a doubt, it is the best time to invest in a housing society due to several reasons. At this stage, you can purchase plots at the lowest prices the society has to offer, hence, the returns are the highest.
- The value of the project is unlocked over a longer time and it happens in 2 steps: At the time the society is officially launched by the developers. Mostly, new and increased rates are announced at the launching time. Secondly, the intrinsic value of the investment increases when formal approval is granted to society.
- However, early-stage investment falls under the long-term investment category, and a lot of patience is required because the timelines are relatively longer.
Best Housing Societies for Early-Stage Investments
- Bahria Town Karachi 2
- Faisal Town Phase 2
- MPCHS Multi Gardens Phase 2
- Capital Orchards Islamabad
- Rudn Enclave Rawalpindi
- Countryside Residencia
Mid-Stage Investments in Housing Societies
Mid-stage investments are made in the middle of the journey of any housing project. It is usually a stage when a housing society has successfully obtained the planning permissions and the master plan is accepted by the regulatory authorities such as RDA, CDA, FDA, and LDA. Moreover, the society is also registered at this time with authorities. Moreover, the start of preliminary construction also falls under the mid-stage and defines it well.
Mid-Stage Investment Features
- At this time, the investors have direct access to invest in a housing society because by this time the project is already famous, and different real estate agencies have started dealing in it. Files can obtain from the open market.
- Although it is not the best time to invest in a housing society, it’s not the worst either. There are still good chances that you will earn excellent returns on investment at this time. But, the price you may get might not be as low as the pre-launch stage but it is still quite an attractive time to invest in a housing society.
- Mid-stage investments are suitable for investors who can put considerably larger amounts of money into a housing project and want a superior rate of return as compared to low-appetite investors as the returns can take anywhere from 3 to 6 years.
- The best investment during the mid-stage of any housing society is the commercial plots, they are usually launched sometime after the launch of residential plots but this is not the case for every society.
- These investments won’t reward you straight away similar to the early stage investment, but they do benefit you after a couple of years of investment when society is closer to completion.
Best Housing Societies for Mid-Stage Investments
Last Stage Investments in Housing Societies
Last-stage investments are the least risky investments in any housing project because the society has either developed completely or it is on the verge of completion, such projects are called last stage projects. To put it simply, last-stage investments are the least risky and may yield lower than the expected results. However, they can also become very profitable over a couple of years and the value of plots increases exponentially with time.
Last Stage Investment Features
- The main purpose to opt for last-stage projects is that you don’t have to wait considerably longer the getting ownership of your property. Most housing societies are fully developed by this stage and allow the construction of houses, plazas, shops, etc. The most noticeable factor in is stage is that different factors such as final location, design, master plan, amenities, and price are available at this stage.
- The prices of plots in the delivery of completed projects are much higher as compared to projects in the early and mid stages of development. This is not the best time to invest in a housing society, especially, if you are a small-scale investor.
- If chosen wisely, after thorough research and guidance, completed projects also have the potential to provide excellent returns on investments. Investments at the last stage are beneficial if society doesn’t plan to extend and provide further bookings.
- Last-stage investments are truly beneficial for you if you are a large-scale investor and you want regular income from your property instead of a one-time benefit. You can go for completed residential or commercial projects in housing societies and rent them out for stable passive income.
Best Housing Societies for Last-Stage Investments
- Bahria Town Islamabad-Rawalpindi
- DHA Islamabad-Rawalpindi
- Gulberg Greens and Residencia
- Bahria Enclave Islamabad
Conclusion
It is a fact that real estate investments are quite complicated, but it becomes a piece of cake if a person knows the dos and don’ts. The real estate investment journey can prove to be very pleasant and rewarding if the investors are eager to learn, analyze, and research the project thoroughly keeping in view the timeline and investment potential.
That is why different real estate consultants working in Pakistan provide advice to investors and home builders. Manahil Estate is one the leading real estate consultancy in Islamabad and Rawalpindi that comes with more than a decade of experience. We are here to provide genuine and authentic advice to new and already working investors. Contact us today for the best real estate advice and options where you should invest and enjoy excellent returns.
