Are you looking for apartments for sale in islamabad to start investing in real estate? Congratulations, this is an excellent decision! This is because real estate is a tangible asset, that is, a more durable, secure and stable type of investment. But do you know what are the ways to invest in real estate? Coming up next, we tell you.
3 ways to invest in real estate
If you want to invest in real estate in Pakistan safely, you should keep in mind that there are three methods: direct investment, financing and real estate investment funds. Next, we show you what each of them consists of:
- Direct investment
Buy apartments As its name says, this is the most direct method to invest in realestate, since it consists of buying a property in a specific sector and then selling it or renting it at a higher cost.
When resorting to the direct investment modality, the investor has in mind to acquire a property with characteristics that differentiate it from the rest, that is, that provide added value.
For example, we refer to an apartment near the sea, an apartment with a balcony, a commercial space strategically located, features that increase its capital gain in the future or that help keep the rental price stable. These qualities will undoubtedly guarantee a safe investment! Visit here Rawal Palm City
If your capital to invest in real estate directly is not enough, but it is enough to finance a real estate project, the financing method through crowdfunding is another good option to enter this market.
Crowdfunding consists of collective financing for real estate projects in which each member contributes an amount of capital to support the project, obtaining in the future the profits corresponding to their investment and contribution.
This type of real estate investment brings together people from various backgrounds who have the goal of developing real estate projects that will subsequently provide them with a return on their capital and equivalent earnings.
- Real estate investment funds
The third method of investing in real estate in Pakistan is real estate investment funds. It consists of a collective investment portfolio in which many people, both natural and legal, invest their capital. This will form a joint patrimony that will be allocated to several real estate projects that will be leased.
In this way, the money that an investor receives in a real estate investment fund comes from the profits obtained from the lease of the properties in which it was invested.
This alternative offers greater diversification of the real estate investment portfolio for investors and the obtaining of periodic income as a result of the lease of the properties purchased or built.
Finally, those who are interested in investing in real estate, but do not have sufficient capital to do so, can participate in the construction of commercial stores, offices,s and apartment buildings, obtaining participation fees through certificates that make them creditors of a part of the income obtained from the rental or sale of such real estate.
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Why invest in real estate?
Investing in real estate is a sensible decision for the following reasons:
- The value of the property can increase
real estate value One of the most unique advantages of investing in real estate is that it can be remodeled for more profit. Real estate is a tangible asset made of wood, brick, concrete, or glass, so you can improve the value of any property by making a few improvements.
It doesn’t matter if the repairs are structural or cosmetic, do it yourself or hire someone, the goal is the same. You can make your property worth more by making some improvements to it.
- Real estate has predictable cash flow
Cash flow is the net income derived from the investment after all operating expenses and mortgage payments have been made. According to the Expert Properties web portal, a good real estate investment should provide a cash flow of 6% or more.
- Real estate provides capital accumulation
To buy real estate, you have to pay an initial fee, and the balance of the money is provided through a mortgage loan. Initially, the principal amount of the loan is paid off slowly and then more quickly towards the end of the amortization period. This capital reduction generates equity.
Up to this point, we have shown you the different ways to invest in the real estate market. It is definitely a safe way to grow your money.