10 Best Ways to Invest in Pakistani Real Estate
The real estate industry in Pakistan is currently booming. Realtors, consumers, and investors are all rushing to get their share of the pie. The interest shown by the common man has been a refreshing change from the usual high-end clientele. This surge in popularity was due to several factors that made real estate investment an attractive option for most people.
One of the main reasons behind this sudden interest in real estate is the increase in the purchasing power of people. The economy has been growing steadily, which resulted in a rise in household income and savings. People have started saving money for the future, instead of spending every penny they have on their day-to-day needs.
This has led to a significant increase in disposable income, which can be used to buy property. Another factor contributing to the rise in demand for real estate is the government’s decision to make home ownership affordable. Earlier, only those who could afford to pay the full price were able to own homes. However, the recent policy changes have allowed anyone to purchase a house at low cost.
The current housing policy allows buyers to take loans against their existing assets and equity, such as their cars or furniture. These policies are expected to spur the growth of the real estate market in Pakistan. It will help the masses realize their dream of owning a house. The government also plans to set up thousands of new housing societies across the country, which will provide affordable houses to millions of people.
Here are 10 of the best ways you can invest in Pakistani real estate:
- Buy Land
It might sound strange, but buying land is one of the easiest ways to start investing in real estate. If you want to buy a house, then you need land. You can either purchase vacant land or plot, depending on your financial status. Purchasing land gives you a secure source of income in case you don’t plan to build anything right away. Buying land will give you a steady stream of monthly income, even if there are no tenants living on it. If you choose to sell the land later, you can do so with ease, since you already own it. This means that you will not have to worry about losing out on rental income if the tenants leave.
- Buy Apartments
If you prefer renting over owning, then apartments are the perfect solution for you. You can buy an apartment and rent it out to someone else. Renting out apartments is more profitable than selling land. With apartments, you get to earn a steady amount of monthly income without having to wait until the tenants move out. Moreover, you won’t have to deal with any repairs or maintenance issues. As long as the building remains in good condition, your tenant should pay you a monthly fee.
- Build Your Own Home
Buying land is the easiest way to invest in real estate. However, it takes a lot of time and effort to turn land into a house. If you don’t have the time or resources to build a house, then you should consider buying an apartment. You can still use the same method to renovate the apartment and sell it to another buyer.
- Invest In Building Construction Companies
You can also invest in construction companies. These businesses specialize in building new houses or remodeling old ones. They hire builders and work with them to construct or repair homes. These companies charge the builder a certain percentage of the final price as a profit margin. This gives you an opportunity to earn a small fortune by simply investing in these companies. There are many such companies in Pakistan, and you can easily find some through online searches.
- Invest In Property Management Agencies
Property management agencies are similar to construction companies, except they focus solely on managing properties. Most property management agencies charge a fee to manage a property. Some may also offer additional services like security or lawn care. However, it is important to note that property management agencies often charge a higher rate than other real estate investment options. Therefore, you should carefully research the company before making a purchase.
- Invest In House Flipping Businesses
House flipping is the process of buying a house and immediately reselling it for a large profit. This business model is quite popular among investors. It works because there are always people looking to buy a house. However, the flip is usually done quickly, so you have to act fast to get the best deal. This makes it very difficult to predict how much money you will make. However, if you have the skill to identify a good deal, then you will have no problem making a killing.
- Invest In Commercial Properties
Commercial properties are buildings or plots of land that are used for commercial purposes. For example, a supermarket can be considered a type of commercial property. There are two ways you can invest in commercial properties. First, you can purchase the property itself. Second, you can invest in a leasing company that manages the property.
If you choose the first option, then you will need to purchase the property and sell it to a tenant. The tenant will then pay you a monthly fee for using the property. Alternatively, you can invest in a leasing company that buys the property from the owner. The leasing company then hires tenants and collects rent every month. This option is ideal for beginners, since it requires less risk.
- Invest In Residential Plots
Investing in residential plots is a good way to diversify your portfolio. You can purchase a plot of land and build a house on it. Then, you can sell the land to someone else. However, this option comes with a few risks. For example, the plot of land might become too expensive, or you might not be able to sell it at all. Also, you will need to maintain the property while it’s empty.
- Invest In Land Banks
Land banks are a special kind of property investment. A land bank is a property that has been registered as a national heritage site. You cannot sell the land, but you can use it for other purposes. One of the most famous land banks in Pakistan is the Sohrabian Village Trust. This land bank was established to preserve the cultural heritage of the Sohrabian community.
- Invest In Foreclosed Homes
Foreclosure refers to the process of repossessing a home that has fallen behind on its mortgage payments. When a homeowner misses a payment, the lender has the right to take back the property and sell it. This option is risky, since the property could be damaged during the foreclosure process. However, if the lender sells the property for a low price, you can buy it for a fraction of the original cost.
Final Words
Real estate investments are an excellent way to diversify your portfolio and generate passive income. However, it is important to do thorough research before making any purchases. You must also learn how to properly evaluate a property.
Once you know what you are doing, then you can start making smart real estate investments. There is no better place to learn about the world of investing than from a pro. Learn everything you can about the field, and then make sure to pick up some useful tips from experts like us at Shaariq.
