How you can get assured income in uncertain times in Pakistan
Uncertain times in a person's life come without any advance notice. If you are a citizen of Pakistan, then you are well aware of what worse situations are. No one can predict what the future is holding for them. Let’s take a fresh example of COVID-19 outbreak in Pakistan. Many heavy financial holders felt the heat when the country went on a two months lockdown. The business sector, employment sector, leisure activities sector and many other working markets were forced to shut down which had a crucial impact on Pakistan’s economy today. Pakistan is an under-development country which has been facing political as well as economic crises from decades. The COVID-19 has standstill Pakistan’s economy along with many other countries.
According to The News Article Published on March 26th, 2020, the virus has impacted many economies and resulted into fallout including a recession waive in The USA, European Countries and Japan. A total loss of $2.7 trillion has been recorded which is equal to UK entire GDP. However, China has shown a slowest growth as it will get support due to its huge reserves.
Many people are resembling this current situation to “The Great Depression Recession in 2008”.
The Great Recession In 2008
An excellent example of the 2008 recessions can be taken into account. It was called "The great depression”. This was a period of time from December 2007-2009 June, in which many larger economies around the world faced a downfall and many business sectors, imports & exports, multinationals and almost all working sectors were affected through it. This was a time when bad news were expected from every angle. However, a bunch of smart investors played smartly even in the severe and crucial recession time. Many investors purchased properties instead of stocks at the time of “The Great Depression” in low rates. When the recession ended in June 2009, the property prices reached sky-high and prices were fourth times more than original purchasing prices. Investors who purchased stocks did not achieved any benefit in the recession, instead they faced immense loss.
Why should you purchase Real Estate rather than Stocks?
Numerous traditional investors preferred to invest in stock market as compare to real estate. Stocks are favorite choice as an investment option, many investors before the time of “the great depression 2008” did not know that real estate offers a more stable investment opportunity. If we consider today’s circumstances in the COVID-19, than the real estate owners are still in a better position as compare to the stock and shareholders.
Let’s have a look at what the expert economist have to say on the current situation,
Question: Which investment do you prefer for the long term or short term please let us know at the end of the blog.
To live a wealthy and comfortable life, everyone needs to plan an investment strategy that is suitable to your budget and your financial needs. According to Dawn Article updated on May 07th, 2018, the investment in real estate of Pakistan increased from 5% to 7% in 2016. Whereas the commercial real estate properties increased investment from 15% to 20% all over Pakistan.
We will show you how investing in Real estate can help you get assured income in uncertain times in Pakistan.
Real Estate Property Vs. Stocks
Investment is a personal choice of every person, we will tell you which choice could be beneficial in undetermined time.
Stocks
When you select to invest in stock market, you are purchasing a small piece of that company. It lets you make income in two ways. First, as the worth of the company stock increases, you earn good, secondly, regular dividends that can be reinvested to add your investment. In both cases, you are dependent on the success of the company. Stocks are in-tangible assets.
Real Estate
When you invest in real estate, even in the most unimaginable worse crises, you have a hold of a physical property. Many real estate are purchased with the intentions to receive rents which is a stable source of income. The property appreciation will increase your property value. Property is a tangible asset. If you purchase an under-development project which is in its initial stage, its value would increase from initial stage, it would never decrease.
Look at the graphs given below which shows both real estate and stocks during economic recession. From 2008 Great Recession to 2020 Covid-19 crisis.
Image source: yCharts.
The real estate and stocks, both investment options took big hits during the recession in 2008 and in 2020, but do not forget that both of these have different risk linked to it.
According to some famous property experts, it is said, people will always need a place to rent or live, no matter what the circumstances. The demand in real estate residential and commercial sector will increase as it offers a low risk strategy. Covid-19 has proved that we have to be in control of our financials to face the worse times.
How Will The Real Estate Investment Benefit You In The Most Uncertain Times?
The real estate investors has the advantage to increase leverage on their total capital and take benefit from substantial tax benefits. This investment option is not liquid, if compared to stock market and it provides a positive passive income and increases appreciation over time.
- Real estate property helps you add passive income.
- As a property owner, you can achieve tax advantages.
- In the uncertain times, you can protect against economic inflation.
- Supports your wealth.
- Guarantee ROI.
Invest In The Real Estate Projects Of Pakistan
Pakistan is moving towards modernization, in which many development projects in the urban areas are in progress. If you are looking to invest in a well-recognize project that would provide you good ROI, have a look at one of the Pakistan’s most appealing commercial projects located inside Bahria Town Karachi,
Since many projects are under-development in Pakistan, the investors are availing this opportunity to invest. With the COVID-19, things have slowed down, but the construction sector is catching its speed again as compare to stock market. These are crucial times, and various countries are facing tight lockdown situations.
So as an investor with ready cash, what will you do in this lockdown? Are you going to only dream about becoming a property owner? Or are you going to gear up and hit the success button?
By reading this blog up till now, you already know that real estate is the best and safest investment option in these crucial times. Purchasing property in lockdown is one of the smartest moves as an investor that one can do.
Many development projects in the real estate sector were halted due to the lockdown, but now they are slowly continuing after Prime Minister Imran khan granted the permission to resume work. The project prices have fallen as the developers want to attract investors for purchasing. This is your time to strike it. As an investor point of view, you can find many appealing projects at reasonable prices at the moment. When the projects are fully developed, you can achieve exceptional benefits from it.
Real Estate In Pakistan Provides Security In The Upcoming Future
The outbreak of COVID-19 has impacted and bought all types of uncertain situations that even a millionaire would not consider. In such a position, a positive passive income is helpful to continue growing wealth. If you invested in stocks, it might have given you a bad experience, but it does not mean that you cannot increase your positive cash flow in today current situations. Real estate is a tangible, stable and securer asset. It is in your hands, and you have 100% ownership of it.
Real estate is going well in Pakistan, and why is that? The first positive point about purchasing a property in Pakistan is that you get complete ownership. In contrast, if you take a look at the international purchasing trends, then the mortgage is involved in every property purchasing. Our expert analyst had a look at selling houses in Washington, D.C, which has fallen off the cliff. The same is the condition all over America, and people are left with no option except to move out of those mortgage loan homes and move into cheap apartments. There are many apartments for sale in Karachi with complete ownership. You pay for it, and you get the possession right on the spot. In this case, Pakistan provides stable and securer options when it comes to real estate investment.
Have you wondered how much is a House for sale in Karachi You might have gone through that area and seen the houses and asked if you could purchase them? But the frauds of realtors stopped you, and you felt hesitant? To receive a free consultation from Pakistan's #1 real estate marketing agency, Contact REDBOX Estate.
If you have more questions about how you can invest your money in real estate market, than give our professional property consultants a call and get all answers right away.
REDBOX Estate is here to fight these uncertain situation together with you.
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