Do you think that property investment during Ramadan is a win-win? Ramadan is the time to ask for forgiveness and make amends. It is also the time when Muslims around the world pay more attention to helping others in times of need. It includes fasting during the day while at work or donating food to their local food banks. The charity done during this month is one of the highest in a religious person’s lifetime.
I see a lot of people asking about whether it is a good time to invest in the property market. The truth is that for many reasons, investing in property during Ramadan is a win-win situation. You can buy a house for sale or a plot for sale at decent prices during Ramadan. I would like to share some of these reasons with you so that you can make an educated decision for yourself and take action accordingly where you feel necessary.
Why Property Investment During Ramadan Is Enticing For Property Investors?
Ramadan, the ninth month of the Islamic calendar, can be an interesting time for property investors. First, it is the peak season for property investment and buying a plot for sale or a house for sale. During this period, most people have surplus capital following their summer sales and are looking to invest in halal (permitted) income-producing assets. In addition, people’s spending and eating habits change during this month; they end up eating out more than they usually do — and often with a bigger group of friends — so they have less time and money to maintain their properties. Making any kind of investment during the holy month of Ramadan is a sensible move, especially when it comes to property. Here’s why property investment during Ramadan is a win-win:
A Great Time to Hunt for Deals:
The holy month of Ramadan is a time for introspection and renewal, but it can also be the perfect time to find a deal on your next home. Property sales tend to slow down throughout Pakistan during Ramadan, so if you’re looking to buy, you may be able to score a bargain on a new home during this period. The market typically picks up again after Eid Al Fitr, which means there are typically fewer buyers active during Ramadan. Ramadan is a time when you can find amazing deals on properties like plots for sale or houses for sale. Developers want to liquidate their stocks and invest before the end of the year, which means they are more willing to negotiate and offer discounts, thereby giving you an opportunity to get a great deal on your property investment.
Lenders Are More Willing To Negotiate:
During Ramadan, banks and lenders usually offer special deals and discounts on loan rates. You can take loans to buy a plot for sale, an apartment for sale, or even a house for sale. They also offer reduced loan-to-value (LTV) ratios to encourage more people to invest in real estate. The longer loan tenors offered by banks during this period also help reduce the EMI burden on borrowers and make it easier for them to manage their finances.
No Economic Slowdown:
This time of the year is considered a slow season for real estate transactions. But who said that you can’t turn a slow season into a profit? Although many people avoid property buying during Ramadan and Eid, the market does not suffer from any economic slowdown or drop in demand. The reason is pretty simple – there are always some people who want to buy properties and houses for sale all year round. Therefore, there is no decline in demand or growth of supply in the real estate sector.
Less Competition from the Crowd:
Since many people refrain from buying houses for sale during Ramadan and Eid, this results in less competition for you. You will be able to negotiate better prices with homeowners and at times for a house or apartment for sale. Even builders come up with special offers for buyers. Moreover, since most agents will also be busy with their families during this time, you will have fewer agents chasing you and trying to sell your property! Take advantage of the spirit of giving during Ramadan.
New Projects/ Discount Offers:
This is a good opportunity to invest in new projects that are in the early stages of development. You can simply buy plots for sale in these societies. Developers usually offer great discounts and flexible terms of payment during Ramadan in order to attract investors. The reason why this strategy works is that the investor can enjoy a high return on investment once the project is completed. Investors can also benefit from long-term capital gains that are higher than those offered by existing properties.
Existing Properties/ Resale:
These properties usually come with lower prices, especially if they are located in secondary areas. Consumers can secure these properties with fewer instalments and then rent them out to benefit from monthly rental income. They can also sell them after a few months or years of ownership and enjoy a good profit margin.
The Bottom Line:
If you’re looking for a more practical approach to property investment during Ramadan, then the post above might be of some help. The blog makes some solid points about the benefits of patience and how that can lead to greater gains in the future. However, it’s worth noting that property investment should never be undertaken as a get-rich-quick scheme. This is also true during Ramadan or any other time of the year. Property investment is a long-term game, best approached with measured planning and a steady hand. But if you can keep that in mind, Ramadan nonetheless offers opportunities to take advantage of during your property search.
Keep following Sirmaya.com for more interesting blogs and news.
