Real estate is considered one of the most profitable businesses in Pakistan. Moreover, it is best to channel to invest your cash if you want to get maximum returns in profit. Though real estate investment is challenging, good market research and patience can add big to your fortune.
The reasons for real estate investment being profitable
If you are thinking of investing in real estate, it can prove to be the best decision you ever made in your life. Below mentioned are few reasons why real estate investments can give a boost to your financial stability:
Real estate is the only investment where there is no fixed investment limit for any asset to buy. While other businesses for example stocks require a specific to buy an asset. In real estate, on the other hand, you can buy an asset worth much greater than your investment in hand, and later you can get a loan to clear your payments. In Pakistan, you can find many commercial and residential projects to invest in but you should invest with a renowned construction firm such as Al Ghurair Giga, Islamabad.
Real estate appreciation
A huge benefit against the investment made in the domain of real estate is that it provides you with appreciation. Real estate appreciates 3-5% on managing property but the good thing is you can force your desired appreciation as well. The only thing you need is some repairs and renovations. You have to make sure you do not invest too much in the renovations because most of the time the profit return on investment is around 80-90%. The renovations must be witty adding beauty to the property. In this way, you can get an appreciation as per your demand.
Regular cash flow
If you own a property whether commercial or residential it can provide you with a regular cash flow through rents. You can buy an apartment at a prime location and can earn big by renting it. State of the art residential projects like Goldcrest Highlife and commercial projects like Giga Mall Extension & D-Mall located at a prime location in Islamabad are worthwhile for real estate investments.
Being a real estate owner you can take advantage of various tax write-offs. When you own a property there are many perks you can enjoy in terms of tax reliefs. Some of the benefits are mentioned below:
- The mortgage interest can be written-off
- Expenses made on maintenance
- Homeowners insurance, dues, and other real estate taxes
You can discuss this with your tax advisor and get as many benefits as you can. Comparatively, if you invest in bonds or stocks only the capital losses can be written off.
The investment market can change in the blink of an eye, while real estate is the only place to invest in which your long-term investment always pays off. As compared to it, there is a possibility you lose all your investment instantly in other businesses. Most of the investment made in real estate is to supplement the retirement income. People plan for their bright future, luxury living, and a safe environment for their kids to live a peaceful life. A wise person makes an investment where he knows his money is safe rather than investing in stocks.
Pakistan is the best place to invest in real estate if you have a trustworthy place to put your money on. You should be vigilant while making such investments and it can give an infinite boost to your net worth. Always try to look for entrusted real estate firms and you will never be disappointed.