The real estate sector attracts many people in Pakistan. This will give a healthy return in time. It makes it is the most profitable business. But, working in this industry is not a cake of piece. It is like buying on a lower rate and selling at high rate. If you want to get handsome amount then you should be familiar with the basics of the real estate. It’s based on different intelligent considerations with good experience and financial understandings. In this post, we’ll guide you about the investment process with good returns and how to use capital?
Know the basics of real estate in Pakistan
You should know how to define this real estate investment. You’re well aware of the fact that there’s no proper way to define real estate investment. However, we can define the process of sale, purchase or lease of property with capital gains which are known as a real estate investment. There’re different forms of this investment, however more suitable to market are mentioned below-
1. Purchasing files
A file is a document related to a plot in a society that is for development. The plot has no possession or allocation for a long time. This document is also favorable when you will see for long term investment. Once a plot is linked with you for development, then rates are increased drastically. It can be very high purchasing a file is a perfect option for investment in the real estate business.
2. Buying and reselling of plots on higher rate
Buying a plot on the lower cost to sell on a higher rate is a common practice. Now, an investor can buy a plot and hold prices. This increase is related to development and time of project. This technique will give a healthy return and is quite profitable but if it’s on right time.
3. Buying a property to rent out
Buying a property in the form of a house, commercial property or apartment is an income-generating process. You’ll just enjoy the fixed monthly income.
4. Buying open land expecting the development
This is a very risky form for sorting the investment. In this type, you should decide between buying it which is not owned by society or under development. Normally, an investor uses this strategy. They check that a developer can buy it for future purpose on the higher rate for the development of the project. Now, this method or strategy is used in Gwadar.
Advantages and Disadvantages in real estate investment
Investing in real estate sector is not so easy; this contains both advantages and disadvantages.
• High return chances in short time
• Ownership of a solid asset
• A constant source of income
• Can utilize it in future purpose
• A good asset for your family
• Due to fluctuation in the market, prices are may not as per your expectation
• You need to pay taxes on property
• Property is not a thing which can be liquidated on urgent basis
• The directly fall in property value is due to the uncertain market situation
• Legal complexities or fraudulent practice can occur