9 Reasons Why You Select Property in Pakistan For Investment

There are many options for investing that you can select from, each with risks and benefits. Growth investments, Shares, Real Estate, Defensive investments, Fixed interest, Cash investments.  Properties investment is one of the favorites. You can find all types of Properties in Pakistan for better investments at Arz.com.pk. There are at least 9 reasons why we should invest in Property in Pakistan and not other types of investments:

1. Relatively Low Risk

In general, investment in properties is not like investing in the stock market where prices in one day can go down and up quite significantly. Only in certain situations where the economy was bad, properties investments may be affected slightly. When compared with other investment types, such as opening a business, saving money on deposit or invested in stocks, property investment has a lower risk than those investments. If we look at the risk compared with income potential, the property has a relatively low risk with good potential income from rents and capital gains.

2. Two Sources of Income: Rental and Capital Gains

Properties investment offers a combination of rental income and capital gains. Investing in Property in Pakistan is not only going to give us a positive cash flow but also the potential capital gains depend on land prices increment. You can get a good profit from a house or apartment to give on rent. This way you can increase your monthly income.

3. Full Control to Increase the Value of Property

If you have a Property in Pakistan, you have full control of how you will increase the value of the land. Many ways can be done to increase the value of the land, ranging from very simple things like painting the house. Other ways are to buy a few accessories or cosmetics, and renovations. These activities are very important especially when we want to rent or sell a house. Some people do small renovations to increase the value of the house so that owners can sell at prices much higher.
 

4. Safe and Sure Investments in the Long Term

Land prices usually will not fluctuate so much. In general, it may take some time for land prices change over time. This is different from the stock market for example where prices can change dramatically in the evening. Property in Pakistan is the best safe investment for the long term.

5. Protection Against Inflation

Unlike savings or deposits where interest is given is usually much lower than the rate of inflation, land prices usually follow at least the inflation rate. In this case, investing in Properties in Pakistan is still a better option to protect them from inflation.

6. A Good Vehicle to Achieve Financial Freedom

Using the rental income to generate positive cash flow, it is possible to achieve financial independence after a few years depending on the level of success of each person in the properties investments. For example, if a person has an income of $3,000 per month, that person can be financially free by making cash $3,000 per month with 5 houses with each house generate positive cash flow of $600 per house per month. Consider it a small home or row house, $600 rent would be very reasonable and quite conservative in this regard.

7. Can Reduce the Tax Burden

Founded the company and buy Property in Pakistan using the name of the company can save taxes. Rental properties can be considered as income taxes and usually will apply only after deduction of all expenses charged. Buying land on behalf of the company will be more profitable than buying on behalf of individuals.

8. Become Rich Through Property

Properties in Pakistan investment can bring people to become truly wealthy. The key to wealth in properties investment is through capital gains. For example, someone is investing in an apartment for $500K price with a down payment of $50K. Monthly rent of the apartment sufficient to pay the bank monthly installments, so automatically, financed by a bank installment monthly rent. After 20 years, the apartment has been paid in full and the price has been appreciated for example, to $1M (this is conservative because the land prices, in general, will increase triple in 20 years). In this case the net profit from investment ($1 M - $50K) = $950K. If this person has three flats and a complete net income would be nearly $3M in twenty years. This person has become a millionaire with Properties in Pakistan investments.

9. The Power of "Leverage"

To invest in Properties in Pakistan have the option to not use 100% of our money, but by using other people's money. One of the most common sources is the money the bank loans. Depending on the country where we are, we usually can get a loan from banks ranging from 70% to 95%. In this case, we only need to spend down payment of 5% to 30% of the land price. This also means that leverage is approximately 3.3 to 20 times.

If you want to learn more about the Property in Pakistan investment, just go to our Blogger and WordPress account and get some basics knowledge and information to start on properties investments.