Real estate investment in Lahore was and is quite a profitable income source due to the guaranteed cost appreciation. Thinking about how to invest in real estate? You are on the right path to finding a way to create a passive income! Who knows, this side hustle could turn into your main source of income one day. What used to be a retirement plan for many is now a multi-million dollar business with youth actively opting for it as a full-time profession. Today, there are multiple ways of investment in real estate as the industry is continuously evolving.
If you have been thinking of taking the leap of faith when it comes to Real Estate Investment in Lahore, we have laid out some of the best options for you to put your money into. Before we hop onto the options, let’s take into account different types of the investment in real estate:
Commercial Investment in Real Estate:
This type encompasses properties that are commercial like shopping malls, large buildings with commercial offices, apartment buildings, and some properties that are a mix of residential as well as commercial.
Residential Real Estate Investment in Lahore:
This type of real estate includes properties that are used for residential purposes from large scale like townhomes and multi-family homes to small-scale residential properties like single-family rentals and condominiums etc.
Industrial Real Estate:
This type of real estate includes properties that are used purely for industrial purposes like warehouses, research and development facilities, cold storage and distribution centers, etc.
Land subject to Future Development for Agricultural Purpose:
This type of real estate includes agricultural land that can be subject to multiple options for future development like building a home or a commercial property, growing crops, raising livestock, and subdividing land.
Smart Strategies of Investment in Real Estate:
Whenever you search on the internet on how to start investing in real estate, you will find many cliche options. Wholesaling real estate, flipping houses, purchasing LP shares (limited partnership), or buying an LLC (limited liability company). Many people are afraid to invest in real estate in the first place. However, there are a few of our tried and tested strategies that will prove to be beneficial for your investment in a real estate venture.
Invest in a Primary Residence:
Instead of living in a rented place and ending up having no savings in the future, you must think smartly. Save some money and pay the down payment of a primary residence. Doing so, you will not be able to get rid of paying rent every month but also be the owner of a property as well. The best part is in a few years, you will be able to create equity for yourself as the property prices of residential properties only increase over time. According to a survey, within the last decade, property prices have doubled with residential properties trending on top. This makes it a safe and profitable option to invest in real estate.
Invest in REITs & ETFs:
If you are someone who cannot invest big bucks in real estate or are wary of the extensive paperwork, you can opt for Real Estate Investment Trusts (REITs). This is a smart way to invest in real estate and has been increasing in the trend too. For easy understanding, REITs are just like investing in online stocks. You don’t have to do anything except for putting money into these trusts that handle everything for you and you get a nice dividend. Here is what REITs do; they purchase a variety of real estate properties mostly big projects like student housing, rental properties, commercial properties (for example; big shopping malls), and industrial properties (for example cell phone towers, factories, warehouses, etc) that are expected to generate large income; utilize as much as 90% of the income in paying the dividends to the investors. Just like REITs, ETF (real estate exchange-traded funds) is also quite a secure option to invest in real estate.
Real Estate Wholesaler:
This is one of the most unique and smartest strategies to get involved in the real estate business. As a wholesaler in real estate, you don’t get to own the property ever. Instead, you only get an interest in the final contract by charging a fee. You need a key element to succeed as a real estate wholesaler. That is a “buyer’s list” that includes investors who are looking to close off the next big deal. You can market your business using different marketing tools like email marketing, social media campaigns and direct messages, etc. What makes a real estate wholesaler a smart strategy? As an investor, you don’t have to invest big capital to get started. You just have to make a list of your potential clients. See what they are looking for, and find the right properties for them.
Investment in real estate is the need of the hour. However, when done in a mundane manner, it may prove to be a great source of income. We have discussed three of our top, tried, and tested strategies of real estate investment in Lahore. You can pick what suits you and your budget and start creating a side hustle now.