Real Estate is considered to be one of the best investments in Pakistan and all across the world. With more technological advances and requirements of better living standards, more residential and commercial areas are under construction. This has caused a great influx of investments. However, investment in real estate can be challenging and results are not guaranteed as expected. So, what are the pros and the cons of the real estate investment in Pakistan, let’s dig into it:
Pros of Real Investment in Pakistan
There are several pros linked with real estate investment. As it is not always, the business that comes with losses and most people meet the expected results. It is due to the higher demands of property across the country. Hundreds of projects are under construction and the industry is witnessing a boom at the moment. It makes investment in real estate worthy of giving a thought. Following are some of the Pros of property investment in Pakistan:
Gradual Asset Growth
As compared to investments in other fields, properties give higher returns in a short time. The major reason for this is the higher demands of the residential and commercial properties. Most of the people are shifting from villages and backward areas with no facilities. They are trying to make a future in areas with growth, facilities, and future protection. For this reason, more residential and commercial areas are under development.
If you invest in a property right now, it is highly expected that the property will double its value in the next 6 months. Because more and more investors will pour in looking for your property and it will create a competition or struggle leading to a price hike of your property ultimately. So, if you are looking for rapid asset growth, investing in property can be your best decision.
Strong Asset for Future
If we go back to the 2000s, we can see many people possessing properties as their future assets. Though the properties did not have much value at that time, the possession made them believe in a strong and secure future. Today, those properties are worth billions. So, what makes the property a strong asset to hold onto for the future?
Properties are the source of passive income. You can rent out your properties to businesses or individuals and take monthly loans. These loans keep giving you something out of your property. You have possession of your property and at the same time it is giving you something back. In the future, if you need investments for some other business, you can sell any of your property and make fortunes with the other business venture. Therefore, properties have a strong asset value.
Solid Source of Income
Properties are beneficial in every way. If you have a plot with no building over, it will grow in its value in days. Eventually giving you more than what you invested. Secondly, if you have a commercial property such as a shop or some residential property as some house, you can get money out of it by renting it out.
Mostly, investors in Pakistan buy some commercial or residential property and after some furnishing, they rent it out. It becomes a source of passive income for them. However, the property still keeps growing in its value. Eventually, returning multiple folds of what was invested. In this sense, the property keeps harvesting your investment in the best ways. You do not need to worry about the source of your income and can easily focus on other investments.
Cons of Property Investment in Pakistan
As every good thing comes with an opposite side, so does the property investment in Pakistan. However, the cons of property investment are not as harsher as expected. It depends largely on the part of the investor and the area of investment. Following are some of the cons of property investment in Pakistan:
Gradual and Slow Price Hike
Properties are no doubt the gradual growers of your assets. However, the growth can be slow and can take time to build the value of your property. Sometimes, the areas of your property and investment trends work in anomaly and show very slow growth. It mostly happens due to lesser public interest in that area or some technical problems with the project approval.
Therefore, in that case, all you have to do is to wait and let your property grow with time. Eventually, the public interest will shift to the area and prices will go up.
Fluctuating Property Values
Sometimes due to certain conditions, the market value of properties falls. For instance, due to some government policy or some problems with the project approvals. It can cause a tremendous loss of investment. It is not a usual condition. However, whenever this happens it causes a gradual decrease in property prices.
Following the rule of investment, in this case, you just need to calm down and wait for the right time. If you sell out your property with the fear of falling prices, it will eventually cause you a loss bigger than you can expect. Because the trends keep on shifting and one day, the prices have to adjust.
Keeping the pros and cons of the property investment in mind, you have to evaluate your investments and then invest properly. Investments in the real estate business can prove to be very beneficial and profitable if you think clealy, be vigilant, and act accordingly. If you need any consultancy and investment advisory, Hashi GOC is at your service. With the best project in Islamabad and Rawalpindi, you can visit our office and meet the best professionals. We can be your Partners of Growth and Secure Investments.
For more details visit (www.hashigoc.com)