Four Basic Real Estate Investments in Pakistan
Pakistan is the land of opportunities and investment. There is a lot of space for people to buy land and sell it for more profit. What we suffer here is a lack of knowledge. People who are educated in this sector have been earning huge margin profits.
Although there are multiple streams of investment in real estate but we will tell you the four basic and most common of them.
- Buying Files
- Buying a property for re-sale or rent
- Buying plots for resale at a higher value.
- Buying open land for the development of society
You might have heard of these investments. Today, you will now know what these actually are:
This first case of investment is a long-term investment. Mostly, enjoyed by long-term investors. Buying files in real estate means you are buying a piece of land in a society without any allocation or possession. This type of investment has the highest return of investment (ROI) as well as the highest rate of risk, but mostly it turns out to be a profitable investment.
Buying a property to rent
This type of investment in real estate is an “income-generating” type of property. Most of the middle-class society of Pakistan is playing on this investment scheme. Some people are even running their house expense on rents. What happens in this investment is you remain the owner and you give your property on lease to somebody on a contract of as per demand.
Buying plots for resale at a higher value
The most common type of real estate investment made by most people. There are two types of investors in this case:
#1 these types of investors will buy a plot. Hold on to it for a longer period of time until the prices go up and then they will sell it.
#2 these type investors buy a property. They will renovate it. Hold onto it for prices to go up and sell it for 3x the profit.
In both cases the investors make up to huge return on investments.
Buying open land for development of society
This one the riskiest type of investment and in Pakistan it is even more due china-cutting and fake papers. We also have political involvement and weak law and order situation that acts different for each class of society.
Anyways, everything is worth taking a risk, and the higher the risk higher the fun and gain. So, what happens in this type of real estate investment is investors predict and buy a huge land that they expect would be in need of builders in the next few years for societies and projects. Then the land is sold to bigger the price.
How to make an investment that suits me best?
Making an investment in real estate is not only money. What really matters is “TIME”. Do your research, select your investment type, and invest in it. Hold on to your investment as long as it is predicted to give more profit. Don’t cash out your real estate. Let it be in the state of land or house. It will return to you better.
It’s really hard to decide what investment would suit me best from the above category. It’s not necessary that you can’t invest in all of them. But for beginners’ guide, you can invest like this.
Level 1: Invest in buying a file. With less money, you will make more profit.
Level 2: Invest in old construction houses and renovate them and re-sell them.
Level 3: If you have made enough money now. Own a house and set it up for rent.
Level 4: Repeat. You know what? Real estate has made 90% of the millionaires today, rich. Do you want to be a millionaire too? Check out our project near Gilgit airport and CPEC. Best place to invest in today’s time.