If you want to grow your real estate portfolio, invest in apartments. The apartment investment is one of the best options for investors who want an additional source of income that also offers a slow yet steady appreciation in the value of their portfolio. Making money from investing in apartments will give you unparalleled value over any other real estate options.
Experts believe the need for apartments will only increase in the coming years and rapid urbanization. High-rise developments in Pakistan have become the new trend among millennials, making it a lucrative avenue for those seeking massive capital gains.
Approximately 15% of the residential projects recently launched in the major cities are offering plots for sale. In contrast, 85% are high-end apartments. Instead of putting all your eggs into one basket, let’s first discover the importance of why one must invest in apartments.
Why you should invest in Apartments?
Property investments will undoubtedly offer you a regular stream of flowing income to depend on for the long term. An income that can comparatively have a higher percentage than stock yield.
Property investment is bound to give you a much higher ROI over the years. Before investing, you must consider that it’s about long-term investment.
Generational wealth return depends on the following factors:
- stable revenue, such as from rents
- capital gains from increased property value
- principal paydown from renters paying down loans
- tax savings
Luxurious features such as 24/7 gated security, valet parking service, fitness centers, pool, elevators, rooftop restaurants, fire safety, emergency systems, walking trails, etc., everything in one place has made apartment projects all the more attractive for renters and buyers.
Unlike the stock market, real estate is one of the few industries that will provide you with a meaningful physical asset. Every land you buy or invest in along its structure will have a value that attains all your wealth. Your property’s income will also have value for future realtors. There is no red or green signal in this domain.
Fact: “According to the Forbes 400 index, 90% of the world’s wealthiest people have made or retained their wealth through high-quality, income-producing real estate, like apartment communities. The ultra-wealthy hold real estate long term because they know that is how to preserve their wealth.”
Value appreciation of an asset
The value of an apartment increases if the property’s net operating income keeps on improving as well with the means of rent increase and effective management of the land.
Keeping your property up to the market trends and standards is equally important in the real estate business. This is one of the top tips to increase the value of any asset, be it an apartment or a house.
Easier to maintain
A well-known and established fact is that apartments are much easier to maintain and upkeep. Unlike a house, all the amenities and complexities, such as repairing leaking pipes, burnt wiring, water damage, or seepage, are handled by the apartment management so that you do not have to put yourself under the stress of fixing these inevitable issues.
Easier to sell
The sale factor of apartments is one of the biggest reasons why buying an apartment unit is a good investment in Pakistan and anywhere in the world.
The increased demand for high-rise buildings has made it much easier to sell apartments, especially if the location is popular or exciting.
Most of the luxury apartments marketed are built outside the busy environment of the city. However, many well-maintained and well-connected residential and commercial apartments spread throughout the city for you to find and invest in.
It entirely depends on your needs and preferences. Remember that the value and appreciation of the apartment rely highly on the location and maintenance. An increase in the rent will ultimately have an impact on your favor.
The government of Imran Khan has been taking working to ease the entire procedure and requirements for home loan procurement to incentivize and develop its vision of vertical cities. 5% of the total lending for housing finance has been advised for commercial banks. On the contrary, the State Bank of Pakistan has brought a particular course of action to boost construction financing for developers.
The government has also been working towards emerging a mortgage finance market in the real estate industry of Pakistan.
Tax on bank income generated from low-cost housing finance has been decreased from 39% to 20%. This rule is endorsed to provide mortgage and home loans to the middle and lower-income groups of the country.
If you are searching for a powerful connection of wealth, then an opportunity is already waiting for you with a proven record and long-term formula to help you succeed the most. And most importantly, just with the proper real-estate knowledge, anyone can excel at this and create phenomenal wealth for future and family goals in the long run.
We believe anyone can solve the solo struggle of getting the deals done with guts, information, and courage. Although, if you intend to invest alone without any outside help, then be sure to have in foresight the right execution plan.
However, having a trustworthy, experienced realtor can significantly help your investment journey, which often gets gruesome for many people.
One good deal is all it takes. Reach out to the Graana.com app to get more information and insight. To produce generational wealth, get the right team, and make your financial life more manageable.