In part one of the article we went over some important features of real estate Pakistan that make it superior to relative forms of investment as well as shedding light on some benefits to the community and economy of local area of investment.

The second part’ the importance of real estate will be discussed o the basis of its variety and diversity. The income generated from investment in real estate can be applied to people belonging to different sectors, classes and in different stages of life. The variety not only applies to application of its benefits but also the types of investment that can be made in the real estate market. How is that so? Keep on reading!

Generation of wealth:

As we discussed that real estate Pakistan values appreciate over time as well as the possibility of generating a steady passive income; it should go without saying that real estate investment goes a long way in generation of overall wealth for the investor. Many individuals are attracted to this field in the first place for such reasons. That is why real estate is expanding at such a speedy pace.

A Barrier against Inflation:

Inflation can be a nightmare for anyone, especially in the cases of financial distress. However the anxiety that comes with inflating rates can be countered well by investment in real estate. Similar to the inflation rising; real estate property values also go up. The rent that you will charge to your tenants will also go up alongside the inflation that will end up stabilizing your financial conditions when inflation occurs.

Although countering the rates of inflation might not be on the priority list for investing into real estate; it should always be kept into mind. For real estate investment can go a long way in helping an individual against the short term and long term effects of inflation.

Aligns with retirement:

In the retirement years the number one question on a person’s mind is the money they need to live through their years after retirement. This is the main driving force of financial investment for many; in such cases real estate proves to be ideal spot for investment.

The property appreciation alongside passive income through renting can help to greatly supplement the financial needs of a retired person, not to forget (as discussed before) it is also a hedge against any sudden inflation. Real estate investment is a great way to generate cash flow for retired individuals.

In the case of a person not wanting to go through the hassle of making deals and managing rental properties, they can hire assistance in the form of real estate agents and management professionals to have their work cut out for them, all the while enjoying financial support from their physical property assets.

Benefits with an active income:

We largely discussed the investment of real estate as a measure of ensuring your financial security and keep scoring up profitable returns; however we should also consider real estate when a steady and active income is already at hand. A real estate investor can benefit from their primary source of income, all the while investing into a real estate property and then putting it up for rent. All they have to do is collect the rent every month and do some maintenance work for tenants to general a substantial amount of income through renting which can greatly improve one’s quality of life.

Real estate appreciation can also allow a person with an active job at hand to generate profits just by a single time investment. All the investor has to do is to hope for a time when the property rates will go up and then sell the property at a higher rate than what they have invested in to get better profits.

Flexibility in areas of investment:

This is one of the major advantages of real estate investment. The option of flexibility in the amount and areas of investment you can make in real estate is of key importance. Such flexibility and diversity in options and areas to invest does not exist in bonds and gold investment.

Flexibility in real estate investment can further be of many types. Firstly we will look at the different options of investment. You can invest into real estate in different forms of property. Plots are open land lots available for sale for further development; with the main advantage being they can be improved and built upon in desired fashion. Plots can be residential or commercial in nature (depending upon the property laws and definitions of the area a plot is located into.. Then come the under construction properties that are left mid construction and are up for sale, these properties most of the time already have solid foundations on which further brick and mortar can be placed upon. You can buy finished lone standing houses that come as livable space so you don’t have to further invest in them to make them functioning. Apartments and flats are also relatively smaller living spaces (compared to lone standing property) usually part of a bigger complex. Such properties are cheaper than fully furnished houses and have higher chances of being rented.

Commercial properties are also a great area for investment in real estate. You can buy out the property space for a meat shop, grocery store, hardware or software store etc. offices and agencies are also settled into commercial properties that one can invest into. You can either own and set up a commercial property of your own (office or a shop) to carry out profitable commercial operations or buy a commercial space and rent it out for commercial operations on a lease to generate passive income.

This type of flexibility is not only present in the types of investment but also in the pricings of property. Properties come in varying shapes and sizes and the cost is calculated per marla of the area of a property. Moreover the further development and improvement costs add up to the value of a property you are investing into. Depending upon your budget you have a vast scale of options you can invest into. you can go in check with the property you can securely afford and make the best use of it as an investment.

Better returns on investment:

Making an investment into the costs of gold or bonds will leave you solely at the stake of costs going up; however the modifiability of a real estate property is what makes it win against classic forms of investment. Real estate values and appreciation can be directly influenced by surrounding development as well. That means you might buy a property at a lower value however due to surrounding development in the local area which required you to simply do nothing at all can drastically improve the value of your property. Moreover the improvement costs on a property are usually lower than the value increase it gets out of it. That is why it is a very popular practice in real estate to buy low cost worn out property and then remodel and renew it to sell much higher for profitable returns on investment.

Help generate savings for future:

The profits on price appreciation and passive income one can generate from real estate investment can be a great factor in supporting and securing your future financial needs. For example for a family of 2, they can invest into real estate to aim for profitable returns in a few years when they have to pay for the finances of their children’s college and university funds.

Many Pakistanis are also ambitious about travelling abroad, or others may have visiting the Holy cities for practicing annual pilgrimage or umrah. A young employee might want to invest to save for their wedding. Such ambitions and needs can be paid for by investment in real estate much safely.

A great opportunity for entrepreneurs:

Pakistan is full of young and ambitious entrepreneurs across the country. Real estate industry can be a great place for entrepreneurs to set up their business. In real estate investment you can lend over your business to management professionals like state managers or agents or be completely your own boss. This is an advantage entrepreneurs want to enjoy; to have direct control of their own finances in the business.

Moreover real estate is also a well established and stable place for investment that can assure success of business startups within the market and then the wealth generated from estate investment can also be put up to ignite the startups of projects outside real estate for entrepreneurs.

Conclusion:

To sum it all up real estate Pakistan is a great investment opportunity for all the wealth benefits and flexibility it provides to the investor. Moreover this investment is stable and applicable to many different phases of a person’s life. The 2 part article comes to a close here… we hope you learned about the importance of real estate from our article!