REAL ESTATE INVESTMENT GUIDE
To invest, or not to invest, that is the question!
Is your mind buzzing with this puzzling question, entrapping you in many fears that often take many fledgling investors in its control in the absence of any sound real estate investment guide?
No need to fall for these fears and traps when you have decided to invest in real estate in Pakistan!
Because, in this article, we’ll guide you on real estate investment in Pakistan, its different types, and why this is the right time to invest in profit-making investment projects.
WHAT IS REAL ESTATE INVESTMENT?
Real estate investment is a profit-seeking and stable income-generation source from buying, owning, operating, and selling the land, residential or commercial properties. Considered safe, risk-free, and less volatile, the investment in real estate has been accumulating over time.
WHY SHOULD YOU INVEST IN REAL ESTATE?
Why should you invest in real estate? A million-dollar question. Isn’t it?
Every one of you asks this query before making a final decision about putting your savings in any real estate project. As this question changes the whole perspective of investment and you might change your mind in the end, so it’s quite useful if you have an initial idea why you want to invest.
PASSIVE AND STEADY INCOME
Depending on the type of investment, it can be active or passive. However, it is a passive source of income by generating a stream of income for a long time. As a result, you get monthly and annual returns on your investment without even taking the trouble to manage it.
Real estate investment is considered to be the most secure form of investment. Furthermore, the realty investment is regarded as the safest investment due to the matchless features of being less volatile and more appreciating in value.
Diversification in real estate investment allows you to balance out your returns. For example, if a property brings less profit and another one huge profits, it makes you better off in long-term investments.
INFLATION-ADJUSTED AND APPRECIATION OF INVESTMENT
The appreciation of the property value every year completely removes inflation effects, making investors better off.
REAL ESTATE INVESTMENT IN PAKISTAN
To achieve rapid economic growth and fill the gap of 10 to 12 million houses in Pakistan, the government has decided to provide considerable tax amnesty to developers and construction companies.
Moreover, the construction of infrastructure and CPEC combined with the rise in urban population has increased the overall value of the real estate in major cities like Karachi, Lahore, and Islamabad.
The mammoth project of CPEC and Gwadar has increased the price considerably, increasing investment in Karachi.
Moreover, the construction of the Islamabad Expressway and Ring Road in Islamabad has increased the investment in Islamabad. On the other hand, Lahore is a central economic hub and business center, so the investment in Lahore fascinates many investors and stakeholders.
For all the good reasons, real estate investment has become lucrative and ideal for many recently. Then why not? It’s you when everybody is reaping the benefits of favorable economic conditions in Pakistan.
REAL ESTATE INVESTMENT TYPES
Although there’re many types of real estate investment, only a few are commonly practiced in Pakistan.
Buy-and-rent property is the most common form of real estate investment in Pakistan. An active form of investment where you’re solely responsible for buying, managing, and selling the property.
On the other hand, the steadiest, stable, and most appreciating hand-on investment allows you to receive a risk-free stream of cash flow for a long time.
On the other hand, you may buy-to-let commercial property to earn handsome returns by investing in mega commercial projects like
Also known as flipping a property, you buy a property, upgrade it and resell it at a higher price to earn the profit. However, some risk is involved in this kind of investment.
For example, the lack of modern amenities and not-so-much desirable location can make your investment worthless, even if you’ve renovated and furnished your property well.
So, don’t step into this type of investment unless you know all the market dynamics.
REAL ESTATE INVESTMENT TRUST (REIT)
REIT is the most liquid form of investment when compared to other forms of property investment in Pakistan. The most flexible and passive investment is becoming the most idealized investment in Pakistan more recently.
The mega commercial projects like shopping malls, apartment buildings, and hotel suites introduce this investment, collecting funds from investors.
Utilizing these funds to develop a property, the project is completed without any wastage of resources and time. When the project is complete, the investors earn higher returns in the form of dividends after the deduction of costs by the managing company. It also reduces the tax burden and tax burden on the investment.
So, are you confident enough to invest in real estate in Pakistan after reading this investment guide? If yes, you must invest in the best real estate projects in Pakistan.