15 Ways to Invest Smartly in Real Estate in Pakistan
“There are two ways to make a small fortune in real estate. One is to start with a large one.” – Mark Twain
The market has been through some tough times lately, but there are still plenty of opportunities out there for investors willing to look hard enough or know where to look. Fortunately, the real estate industry also offers up plenty of handy tips and tricks that can help you get started on your way to building wealth. If you’re wondering how best to invest smartly right now, here are 15 ideas to get you started:
- Buy Property at Discounts
One sure fire way to make money from real estate is to buy it when the price is low and wait until it appreciates before selling again. This strategy will work anywhere in the world, not just Pakistan, as long as you find yourself a good deal. Of course, this method also involves taking on risk, so be careful about which deals you pursue and make sure they’re sound investments.
- Find New Projects Before They Become Popular
New projects tend to become popular very quickly because people want to live in areas where their friends already do. For example, if a new housing project is being built near an existing one, it’s likely to attract many more buyers than the old project did. However, you can sometimes beat the rush by finding out about these projects ahead of time and buying property there before too many other people learn of them.
- Pick Properties with High Rental Demand
This is another way to make money off of real estate, but it’s not quite as straightforward as buying properties at discounts or investing in new developments. You need to choose properties with high rental demand, then make sure they have amenities that meet those demands.
- Choose Properly-Sized Buildings
For most people, renting out space is much easier if you offer units that are smaller rather than bigger, so pick buildings that fit this description instead of trying to squeeze too many tenants into each floor. You may even want to consider building your own buildings to ensure they’re all sized properly.
- Consider Off-Plan Investments
Off-plan investments involve buying land, then letting someone else build it while you sit back and watch the value rise. These kinds of investments can be risky, but if you pick wisely you could end up making a lot of money without having to do anything.
- Don’t Ignore Luxury Homes
Luxury homes aren’t always luxurious, though, so don’t think that you can only invest in them if you want something flash. Some luxury properties have more room and better facilities than standard ones, so they might actually be cheaper to rent out, and they’ll often appreciate faster too.
- Rent Out Rooms in Your Own Home
If you have spare rooms, you can easily turn your home into an investment opportunity by renting them out to tenants. You should charge enough to cover all of your expenses, plus extra for maintenance and repairs, and you might even want to increase the rate periodically to keep pace with inflation.
- Focus on High-Income Areas
Some of the best places to invest in real estate are in areas that are known for attracting high-income workers. They’ll probably have good transport links to nearby cities, so you shouldn’t struggle to find tenants, and they’re also likely to experience rapid appreciation.
- Think About Co-Living Spaces
Co-living spaces are becoming increasingly popular, especially among young professionals who don’t yet have families. Because they cost less per person than traditional apartments, they tend to be pretty affordable as well.
- Try Using Property Management Companies
If you’d rather leave the day-to-day management of your properties to someone else, then try using a professional service like this one. A property manager will handle everything from collecting rents and handling complaints to finding tenants and carrying out inspections, so you can relax knowing your properties are in safe hands.
- Take Advantage of Tax Breaks
Real estate investors can take advantage of tax breaks in Pakistan. In fact, they’re often more generous than those offered to ordinary citizens. The government encourages people to invest in property by offering a variety of tax deductions and other incentives.
- Work with Professionals
You might be able to save a few bucks by doing some of the work yourself, but it’s usually far smarter to hire professionals to take care of the rest. In particular, you may want to use a lawyer to draw up contracts and a surveyor to check the quality of your property.
- Don’t Forget About Landscaping and Amenities
People don’t just rent properties for their living space. They also want to feel comfortable when they visit, so make sure your landscaping and amenities meet their expectations. If you’re feeling creative, you could even add things like swimming pools and gyms to attract higher-paying tenants.
- Look Beyond Housing
If you’re looking for long-term returns, you should consider investing in commercial property, such as office blocks and business parks, and industrial land. The returns on these kinds of investments tend to be a bit lower than those on residential properties, but they do offer a steadier income flow.
- Avoid Getting Involved in Illegal Activities
The last thing you need is to be caught up in an illegal scheme that could ruin your reputation, so avoid getting involved with shady characters at all costs.
Final Words
There’s no denying that real estate represents a great way to build wealth over the long term, especially in emerging markets where prices have fallen sharply. It’s also true that you’ll never know what opportunities are available unless you put yourself in the right positions to spot them. Follow these tips and you should soon start seeing more success on the horizon.
