With the rise in Pakistan’s Population, the real estate market is also booming. In the last few years, a large number of housing society projects have either been developed or are under development in order to cater to the needs of the fast-growing population. Currently, there are more than 100 companies that are primarily and secondarily involved with the real estate market in the country.
Due to the numerous new housing societies being developed day by day, a lot of investors are investing in real estate as compared to other industries. Real estate investment is never a bad option in the first, but it’s the best investment opportunity out there right now.
With more and more people investing in the real estate market, here are a few reasons they have given as to why got into this investment opportunity and why they decided to stay. You may also like to learn about the Nova City Islamabad.
Security
Investing in real estate means that the investor has something substantial for their hard-earned money as compared to investing in a stock or buying a bond. Real estate property gives the investor the assurance that their investment is worth something and will not just plummet overnight. Hence it can be said that investing in real estate property is a secure option for making an investment.
Security from Inflation
Another reason why investors prefer investing in real estate is that there is no scenario of inflation having an impact on this investment. Property investment saves the investor from facing hyperinflation. This means that along with the prices increasing for everything else, the rental rate will also go up. With the rents increasing, the investor can be at ease that despite the prices for everything being affected due to inflation, they still have a stable source of income to afford a good lifestyle.
Bank loans and leverage
Most of the times banks will offer investors loans in order to purchase real estate property as compared to giving out loans for anything else. If the investor wants to invest in any other industry, they will have a very hard time trying to secure a loan from the bank. However, securing a loan for buying a house is not that difficult. This means that you can buy real estate assets 5 times your current bank balance and then sell them for a higher profit. House loans also have a low-interest rate and have a long time period to return them.
High Return Rates
One of the main reasons why investors get into the real estate business and decide to stay in it is the high return rates of real estate assets. This factor is the reason why most people consider investing in real estate as the easiest way to make quick money in large amounts. it is important the investor does thorough research before making the investment. Get the idea from the Rudn Enclave.
The trick here is to find the trending topics in the industry. If there is a new housing society project being launched in a favorable location or if it’s part of a mega-real estate development project, then investors should try and invest in as many residential and commercial plots as possible.
These plots can be sold for double and sometimes even triple the original amount after the society has been fully developed. The market value of such plots increases because after the development is complete, the projects become favorable and people want to build their homes in them.
Investment opportunities
Most people aren’t aware that the real estate industry is more than just investing in a residential plot or buying homes to put them up for rent. The real estate industry has a number of investment opportunities. Some of these investment opportunities include buying and renting out plazas to big brands or companies, buying run-down hotels, and flipping them to rent them out to tourists
Although there are a few setbacks to investing in the real estate business, with the right mindset and proper research, nothing is impossible. The real estate market is a good investment opportunity to make good money in a few years and the vast investment opportunities are the only reason why people get into the business and stay in it for decades