There are two types of investments. The first one is traditional investments which are commonly known as stocks and bonds. The second ones are alternative investments which comprise private equity, commodities, real estate, and many other investments not common to the general public.
Investors usually turn to alternative investments for greater benefits and return not associated with traditional investments. One of the most common types of alternative investments in Pakistan is real estate.
If you’re looking for houses for sale in Lahore you should look up for a good real estate marketing agency. Aetmaad is a leading real estate marketing agency in Lahore which deals in real estate for people from all walks of life and is well-known throughout Punjab. You can visit our Facebook page for more details.
Why Real-estate is Considered a Good Investment?
Real estate is considered a good investment due to various reasons. It provides potential long-term return through rent and capital appreciation.
The rental income acts as a hedge against potential economic shocks. Moreover, real estate investments do not follow any business cycle hence they are less correlated with other investments.
Real estate investments exhibit very unique features as well. The first unique feature is that no two investments can be identical each property has its own identity. Moreover, real estate is indivisible; you cannot split it or break it down. Furthermore, Real estate is fixed hence you cannot move it from one place to another.
In Pakistan, the Federal Government has announced various subsidies and tax breaks for people who invest in Real Estate. The recent amnesty scheme has allowed people to invest heavily in public housing schemes which are expected to yield great returns in the future, with incredibly low taxation.
Over time real estate values tend to appreciate a lot in comparison to other investments. Even in a period of economic distress real estate investments generally tend to grow because people need somewhere to live.
Real estate properties also provide you with a hedge against inflation. Inflation eats wealth and tends to reduce your disposable income hence you have less income to spend.
By investing in real estate your investment tends to appreciate annually and hence if you invest carefully you might even get a greater inflation-adjusted return which will considerably increase your wealth.
Another reason to invest in real estate is the rental income or income from lease payments. The main benefit is that real estate investments tend to provide a steady income and hence can make your planned investments or expenditures a lot easier.
Profits or payments from operating activities also result in cash flow for real estate owners.
The most common drawback associated with real estate is that it is illiquid i.e. you cannot readily exchange it for something like cash or stocks. Moreover, it requires a substantial amount of investment.
The former may be true because real estate isn’t a traditional form of investment it is under the category of alternative investments which are usually illiquid. However, if you don’t have much money to invest in real estate you don’t have to worry as there are indirect ways to invest in real estate.
REITs or Real Estate Investment Trusts are a form of real estate investment where people with low capital tend to invest in real estate.
In return, REITs tend to distribute whatever cash flows generated from their investments be it rent, operations, lease payments to their respective owners. REITs are listed on stock exchanges and are liquid too.
Pakistan is a developing country with a lot of potentials. There are vast areas reserved for housing and developing real estate and with an abundant population, the demand for real estate does not seem to slow down any time soon.
Moreover with the various tax breaks and schemes provided by government real estate investments seem to be more profitable than ever.
If you plan to buy a house or an apartment in Lahore you have absolutely nothing to worry about. Aetmaad is a renowned real estate marketing company in Lahore that has various projects of its own.
It is one of the leading marketing agencies in Lahore. If you are looking for any apartments for sale in Lahore do look up Aetmaad because we offer the best prices in the region Kyun keh Aetmaad zaroori hai!