Vacation homes are handy. They save you from the exorbitant costs of hotels & lounging and put an end to awkward stays at your relative’s places. Especially if you are an overseas Pakistani, you must travel to Pakistan every once in a while. In such a situation, investing in a vacation home becomes all the more worthwhile, not just for convenience but also from an investment perspective.
This article will discuss everything you need to know about purchasing a vacation home in Pakistan. Hopefully, this information will help you make the right decision.
Factors to Consider when Buying a Vacation Home
Like every other investment, pouring your money into a vacation spot is also a big decision. Below are the main factors you should consider.
1. Location of the property
In real estate, location is everything. A prime location will be easily accessible throughout the year. If you are an overseas Pakistani who frequently lands in Islamabad, then the areas around Murree are a perfect location. It’s a quick drive from Islamabad, but traveling up north to your vacation home may not be as convenient if you land in Karachi.
Moreover, you must consider the views you want to witness from your vacation home. Do you want a house in the mountains overlooking a snowy mountain? Do you need a beach house? Or do you want a hilly retreat nearby a noisy river? Pakistan offers exceptional geographical diversity, so there are plenty of options for you to choose from.
2. Return on Investment
A vacation home isn’t just a vacation home. You can convert it into a rental property and get passive income. Many investors purchase a vacation home because they want to diversify their portfolio and get extra rental income from vacationers. However, you shouldn’t just assume that people will be lining up to live in your vacation home.
You need a proper assessment of the market and your competition. In case there are several cheap motels around your locality, then the chances are that your property will fall to the ground. Besides, you also need proper marketing to get suitable tenets. Most importantly, you need to partner up with some local tour guides to keep your property on their radar.
3. Frequency of Visits
How often do you visit this area, and for how long? If you visit this area once two weeks a week, there’s no need to make a large investment for such occasional visits. In such a scenario, you can easily rent a place nearby or stay at a hotel for far less a cost than what it would take for you to maintain your property. However, if you live in Pakistan and want a vacation home in the north, then it makes perfect sense. You can buy a home in Murree or Swat and head there every summer to get some much-needed respite from the hot weather.
4. Maintenance Cost
When people purchase a vacation home, they often overlook this small detail – who will take care of their property throughout the year? Most holiday homes are located in far-flung areas that are prone to natural disasters. There are landslides, snowstorms, windstorms, heavy rains, and other natural calamities can damage their property. Besides the regular utility bills, homes require upkeep and maintenance. This means the maintenance cost of these areas increases. Moreover, other intruders like thieves and burglars may realize the house is empty, which means you may also have to invest in high tech CCTV cameras.
Finally, the most important consideration is your investment budget. It includes the down payment for the property and multiple installments until possession. Not just that, you should also include the regular maintenance cost in your budget. This is because Vacation Homes mostly remain vacant for most of the year, and as soon as the summer season begins, you will need some cash to fix it up for the new tenants. Moreover, if you want to hire someone from the nearby area to take care of the property, you will have to pay them extra for the services. Therefore, include this cost in your budget as well.
Overseas Pakistanis travel to Pakistan every once in a while, whether it’s to meet with their family, on a business trip, or just to enjoy the charm of the north. If you are one and planning on visiting Pakistan, consider buying a Vacation Home. Giga Group recently launched their groundbreaking Vacation project titled “Goldcrest Vacation Homes.” These luxury apartments are an excellent investment opportunity for overseas Pakistanis because of their close-to-Islamabad location, convenience, and resale value. For more details about Vacation Homes, Visit our page.