As Bangladesh’s capital, Dhaka is the central hub for people from all around the country to move into. The real estate scene has been at its peak for a while now, making Dhaka a prime destination for homebuyers and investors. The city offers many options, including brand-new and old flats in Dhaka. However, the developers have noticed the demand for houses increasing after the COVID period, and they are meeting the demand by constructing new houses. Since everyone doesn’t have the budget to go for a new apartment according to their requirements, they look for an old flat sale in Dhaka. The increasing demand for old flats also brings in investment opportunities. This article will explain why investing in an old flat sale in Dhaka is worth considering and how you can get a potentially higher return.
What makes the old properties a great investment potential among all the property options? Here are the reasons-
Budget-Friendly Investments
New apartments are catering to a portion of the housing demand. However, not everyone’s budget aligns with the financial requirement for a new unit. The budget restriction works as a key factor driving interest in old flats. This increasing interest is why investing in an old flat sale in Dhaka is a viable option. The initial investment is relatively lower, making it easier for first-time investors or homebuyers. Even if you are renting the apartment, you can get to a quicker break-even point because of the initial low investment. Whether you’re investing in your address or trying to get a higher return, eyeing an old flat sale in Dhaka would be the perfect option because of the increasing market demand for old flats. You can stay in the apartment or rent it for now, but you will most likely gain an increased return from selling the flat in the future.
Customization Potential
While new apartments have some restrictions on renovation and customization, old flats are usually free from these restrictions. You can customize it according to specific requirements and resell for for a greater value. Alternatively, you can also renovate the apartment in a modern style that attracts a lot of potential customers. This customization potential can also lead to higher rental rates, attracting people looking for a tailored living space. Customization of the flat is a secondary investment that increases the potential for a higher return when selling it.
Diverse Options
When you invest in an old flat, you open the pathway to a diverse range of options. Young professionals, new families, and students often look for a well-located and affordable old flat sale in Dhaka. These diverse ranges of people allow you to rent or sell the apartment quickly and quickly collect the return on investment.
Investing in an old flat sale in Dhaka can be a rewarding journey if you proceed with careful consideration. To ensure a safe investment, here are the crucial factors you should consider before making a decision.
Location and Neighborhood
Location is the key to a successful investment. No matter how old the apartment is, if the location offers accessibility, proximity to essential amenities, public transport, commercial centers, and a proper healthcare center, it will likely attract tenants or buyers and ensure long-term demand.
Property Condition
In most cases, the condition of an old flat sale in Dhaka will not be up to the mark. You will require a thorough inspection to figure out what repairs are needed. While some repairs might be expected, you need to make sure that the property’s foundation and structure are in the right condition to avoid any high costs in the future.
Renovation Potential
Old flats have great renovation potential. Evaluate if the flat can be renovated to a modern living standard. It can increase the property value, but ensure your renovation costs are within your budget and match the potential return.
Rental and Resale Potential
Decide if you want to rent or resell the property in the future. If you want to rent the property, research the rental demand, rate, and potential rental income. If you plan to resell the property, evaluate the resale potential of the property because it attracts potential buyers.
Future Developments
Research any upcoming future developments or infrastructure in the location. New developments affect the property’s value and desirability. Also, knowing the potential changes can help you understand the property’s long-term prospects.
Financial Analysis
Before making this big of an investment, calculate the overall investment cost. Include costs like purchase price, renovation expenses, or any additional fees. Once you list all the costs, compare these costs to your expected financial income by reselling or renting the property. By comparing this, you will know if the investment aligns with your financial expectations.
Dhaka offers different types of properties. Investing in an old flat sale in Dhaka can be beneficial if you do enough research and analysis. The best part about these old properties is that many options are available. By considering some crucial factors, you can make a proper investment strategy and maximize the property’s potential return.
Frequently Asked Question
Can I get a better deal on an old flat sale in Dhaka than a new one?
Yes. Usually, aged properties are more affordable than a similar new property with similar features.
Why should I consider investing in an old flat?
An old flat gives you advantages such as affordability, customization options, rental and resale potential, etc.
How can renovation impact the potential of an old flat?
Renovating the apartment to modernize the facilities and amenities can attract higher-paying tenants or better resale prices.
How can I anticipate the property’s value appreciation in the future?
Research upcoming development plans, infrastructure projects, or urbanization trends in the area. You can anticipate the property’s value appreciation through these.
Is it better to invest in an old flat for rental income or capital appreciation?
The choice depends on your financial goals. Rental income provides a steady cash flow. On the other hand, capital appreciation offers long-term gains. You can also choose to combine both strategies.