Do you know that investing in real estate can exponentially increase your wealth? Do you want to design a life from which you don't need vacations? Investing in real estate in 2022 is rewarding. The question is, why 2022 has been fruitful for real estate? Why should you invest in real estate? Not sure? Don't worry. We have got your back! This blog will guide you and give you solid reasons to invest in real estate. Here are 10 reasons to invest in real estate in 2022: -
Investing in real estate is one of the safest investments you have ever made. Have you noticed that rich people around the globe have a significant part of their portfolio invested in properties and buildings? Because the value of the properties rarely goes down, and even then, it's a short period. You can rest assured that your property's value doesn't decrease as more building rises. Buy lands and buildings if you want your value to be safe for generations. Success is dependent on the action or steps you take to achieve it. Investment is building a haven for the future: with the right investment choice with at least 1% minimum risk and expert guidance, profit and results will be 100% guaranteed.
Do you know that the average land/home everywhere in the world appreciates by 3% per year? The same is what is going on in Pakistan. Over the last 21-year period, real estate has yielded an average annual price increase of approximately 11.3% per year. The trending markets are seeing even more rapid growth. The real estate maintains its value over time, but it grows your value due to a constant increase in demand.
The real estate market is stable, and you can predict the latest trends in prices quite conveniently. Real estate investments are less volatile than other investments like stocks. First Mega Business Hub has been launched in DHA Multan by Bodla Group. Business Hub will provide fantastic investment opportunities to investors in DHA Multan with low-risk and high returns.
You can generate passive rental income through your investment in the real estate sector. To understand how rental income can generate money, we will need to dig into the concept of rental yield. Rental yields are the annual rent divided by the total property price. So, between 2% and 4% e assumed that the average rental yield for residential real estate in Pakistan is approximately 3% per year by analyzing the past 21 years of data from 1999. Therefore, that will take the total average returns on real estate to 14.3% per year if one combines the price appreciation with the rental yields. If one had bought an Rs1 million (Rs10 lacs) property that yielded the same returns as the national average, that property would be worth Rs9.4 million (Rs94 lacs) today.
In 2022 you can increase the value of your property and can magnify the return you are getting from real estate. In Pakistan, forced appreciation increases property value through direct efforts and investments in properties. By changing the interior design, a fresh coat of paint, and renovating your property, you can forcibly increase the value of your wealth. This is the main reason why the entire house flipping market exists. You can make your property attractive by adding a few new features to the property. People find properties in poor shape, maybe undervalued, forcing appreciation on them and selling for profit.
According to the latest policies, a tax rebate of 90% will apply to the builders and developers of low-cost housing. Builders and developers have tax exemptions on the purchase of building materials. Government like real estate investors, and they treat them differently regarding taxation. Real estate investors pay less tax than almost any other citizen in Pakistan. Real estate investors get tax deductions on property like depreciation deduction from income, mortgage interest tax deduction from income, cost of repair and maintenance, utilities, property tax deduction etc. Government does this to attract more real estate investors.
You can't go wrong with owning land or properties. When you own a property or building, you have multiple ways to benefit from it. In case of emergency, you can use it as your office, sell it, use it for your residence, rent it out, or lease it out. The fact is that your tangible asset can’t be stolen. Isn’t it wonderful? Traditional investors prefer tangible assets with a steady return over high-risk high, reward alternatives. Bodla group has brought forward various housing projects like constructing 108 houses of 5.2 Marla in sector V by Bodla Builders.
The addition of real estate to a portfolio of diversified assets can lower portfolio volatility and provide a higher return per unit of risk. Many options are available when investing in real estate like apartments, townhouses, short term rentals, hotels, commercial complexes, office buildings etc. The country's deficit of housing units and commercial buildings is an opportunity for existing builders, developers, and investors to increase their investment for higher returns and new players to explore this sector and diversify their portfolios. Bodla group allows you to invest in houses and commercial property and DHA Rumanza Golf Course and Country Club. Ideally located for a luxury experience and a premium sports experience with a beautiful view.
When the currency loses its value due to a rise in prices macroeconomically, the investment is considered to protect the purchasing power of money. This concept is known as an inflation hedge. Due to past covid years and the political instability of our country, there has been a sudden spike in inflation. After covid, we are getting back to everyday life, but spending too much too fast could lead to big-time inflation due to an oversupply of demand. Investing in real estate s considered a hedge against inflation because as the price of property increases over time, it lowers the loan-to-value of any mortgage debt, acting as a natural discount. As a result, the equity on the property increases, but your fixed-rate mortgage payments remain the same.
Suppose you want to make money while sleeping or on your holidays, invest in real estate. It is worth it! Real estate is the modern version of an oil rig in our backyard, working 24/7 to make money for you.s
We hope that this blog must be helpful in terms of making your mind about whether you want to invest in real estate in 2022 or not? Investing in real estate can do incredible returns for you, but before you decide, you must clearly define the objectives of your investment. Bodla group is giving handsome investment opportunities to investors and builders. Bodla group deals in land procurement, property trading, development, and construction.