In Pakistan, real estate is the most reliable, convenient, manageable and safe option to invest in. As land is an asset whose price increases with time. Among the most profitable ideas investment in real estate is the one. However, it’s not a piece of cake to just go buy land and then sell it at higher rates. You should be completely aware of the procedure before landing in the investment pool. Investment in real estate has numerous advantages to enjoy. One of the significant benefits of investment in real estate is that you are the only owner of your property and it is now up to you how you avail maximum worth out of it.
Apart from real estate, there are numerous other investment opportunities but Pakistanis mainly prefer investing in real estate as it is an asset that can be seen and touched. Generally, other investment opportunities are virtual. It’s more convenient for Pakistanis to secure the real property by selling it, generating a profit and again investing the money in a better alternative.
WHY INVESTMENT IN REAL ESTATE IS THE OPTION TO GO FOR?
Real estate or Prime valley is basically a ‘real property’ that contains the land with several attached developments. The developments can be natural as well as manufactured such as; buildings, roads, minerals and crops. Investment in real estate means holding property and generating regular monthly income from that land. There is another option of flipping the property as per your demands. Millions of Pakistanis are generating their living from investments in real estate.
In Pakistan, a person who is earning a median salary is focused on saving a little amount for investment. The median salary is supposed to start from 50k to nearly 70k and dedication for investment is 10k to 15k per month. Investment in real estate ultimately ensures a financially secure future with an additional income stream.
In Pakistan, investment opportunities are expanding continuously. Different investment categories enable a person to invest in the stock, gold, peer-to-peer lending, forex, bonds, 3D printing, real estate, and the list goes on.
A question that can arise in the mind of a person who is about to start investing is, where to invest? Which investment stream is best for me? How can I opt for the most relatable opportunity to invest? If you are also confused about investment then stop panicking. In this article, we will compare all the options available in Pakistan for a beginner so that you can make a timely decision about your future investment.
INVESTMENT IN REAL ESTATE VS STOCK
The argument of real estate or stocks is very old and I think it is more like comparing apples to oranges. Regarding the factor of risk and perks, both opportunities have separate and different risks to take and benefits to enjoy. Stocks can be done very easily without any huge investment. In contrast, investment in real estate requires a large amount of cash and is generally more time-consuming than stocks. But a person is investing to get the maximum out of it, if in terms of that output; investment in real estate is surely the best. As investment in real estate allows a constant passive income flow however investing in stock is like, you will get profit when time is good.
Investment in real estate is undoubtedly a tangible asset; on the other side stock prices are more volatile than real estate. Real estate has another advantage of tax deduction; investment in stocks can activate big taxes. In short, in Pakistan in the debate of investment in real estate vs. stock, real estate wins for all the right reasons.
INVESTMENT IN REAL ESTATE VS GOLD
Investment in gold is a very common method as the money remains flexible and secure. Pakistani people invest a good amount of money in gold. Investment in Real estate and gold, both have long-term and short-term benefits but what about earning potential? Earning potential is many ranks higher in real estate as a person can generate monthly income from real estate but no monthly income from gold.
On the contrary, investment in gold is way riskier because if the gold price drops in the market automatically investment drops. The price of gold is also more volatile as in Pakistan almost every day the price of gold fluctuates. So, investment in real estate property is a better option than gold.
INVESTMENT IN REAL ESTATE VS FOREX TRADING
Investment in real estate and forex trading are two completely different streams to select. Each has its pros and cons. But as a beginner investor in Pakistan, a person always wanted to go for more organic solutions with little or no chances of risk. Forex trading not only limits the portfolio but also limits the amount of money a person is generating from the investment.
Also, investment in forex is not more reliable as it entirely depends upon the economic condition of the country. With every changing state, you should have complete knowledge of the currency you are going to invest in, which is quite time-consuming now and then. Investment in real estate allows you to enjoy a stable monthly income, forex trading is absent on this factor too.
INVESTMENT IN REAL ESTATE VS PEER-TO-PEER LENDING
As every investment opportunity has its precedence and risk factors involved with it. Peer-to-peer lending is riskier than real estate. Even if you invest in it with proper knowledge, multiple chances of risk exist, more than any other stream of investing. Also, in Pakistan peer to peer lending investment options are increasing and competition is getting tough with each passing day, so unauthorized options are also rising to grab the attention of onlookers.
To protect your hand, it is better to opt for other available valid options, like a solid investment in real estate. Consumer lending is considerable if you are all set to spend days in a lot of research, own a balance to pay additional fees and are willing to take risks in terms of generating results.
INVESTMENT IN REAL ESTATE VS INVESTMENT IN BANK
In banks you can only deposit money to secure it also; a very little amount of money can be saved in banks. Apart from the security factor, there is no other advantage a person can enjoy after depositing money in a Pakistani bank. Money saved in the bank is not generating any profit however; investment in real estate provides a genuine profit. Pakistani banks only offer returns to their customers and that return is very little compared to a tangible asset. In a nutshell, instead of frozen money, invest somewhere to enjoy long-term results. An investment is a great idea to multiply money.
INVESTMENT IN REAL ESTATE VS BONDS
A war of words between real estate and bonds is like fixed output to rental output. Output from bonds is very limited with inflation, as a bond is usually referred to as a fixed-income strategy. It is also considered a hard asset because no physical item will be in the grip and Pakistanis mostly prefer investing in the physical assets rather than virtual due to security factors. To initiate maximum results out of the invested money, it is real estate over bonds in Pakistan. So, prefer rental yield over bonds yield!
Makaan Solutions has come up with the safest real estate investment options available in Pakistan. Right now two housing schemes are famous in the real estate world:
CAPITAL SMART CITY
Capital Smart City is one of the trending housing societies in Pakistan due to its unique features. Pakistan’s first smart city is located next to New Islamabad International airport along with Lahore-Islamabad Motorway. This housing society is a joint action of Future Developments Holdings (Pvt) Limited and Habib Rafiq (Pvt) Limited. Both names are well-known in real estate with multiple successful projects. A smart master plan has been designed by a Singapore-based company for Capital Smart City. Moreover, Capital Smart City holds commercial as well as residential plots. Capital Smart City is an authentic project as its NOC has been accepted by Rawalpindi Development Authority, RDA. Society is further broken down into different districts. The main focus of developers regarding this housing project is to develop it advanced and up-to-date.
LAHORE SMART CITY
Another safe investment opportunity is Lahore Smart City which is located at Lahore By-pass road close to Kala Shah Kaku. After Capital Smart City, this housing society lies on the list of smart cities in Pakistan. The housing scheme will progress under modern infrastructure, unique construction and a lavish lifestyle. The key objective is to provide advanced technology and an eco-friendly environment for Pakistanis. Lahore Smart City is again in collaboration with Future Developments Holdings (Pvt) Limited and Habib Rafiq (Pvt) Limited. Norman Foster has designed the master plan of this housing scheme. The total land allotted for construction is about 20,000 Kanal. Lahore Development Authority, LDA has licensed the NOC to this construction project. As society has smooth access to water, gas and electricity now the development of Lahore Smart City will boost. Also, it is an affordable housing scheme with flexible installment plans.
The above information is authentic and is researched after assembling all the facts to recommend a progressing investment strategy. Makaan Solutions, a leading real estate and marketing firm in Pakistan, also approves all the above-listed comparisons. Saving and earning make you rich, however investing makes you richer. Choose the best investment line for yourself. If you are serious about investing to make your money grow, consider investment in REAL ESTATE!