We all hear the term ‘investment in real estate’ every once in a while.
Let us find out what it is, why we should invest in real estate. And more importantly, let us explore how this industry actually works.
Real Estate is a real or physical property which pretty much explains it in the literal sense. It is broadly categorized into 4 different types. In the next section, we will explore them briefly.
Types of Real Estate
There are four types of real estate:
Residential Real Estate
Residential real estate comprises homes that are both newly constructed and the ones that are resold. Residential real estate itself has a pretty wide domain. In Pakistan, they are often referred to as ‘hot items’ because they are very frequently bought and sold. This makes investment in real estate in Pakistan a fairly profitable opportunity.
There are a few subcategories of residential properties, namely:
Apartment Buildings, commonly known as ‘flats’. They yield high profits, have very little competition, and are very popular in big cities like Karachi, Lahore, and Islamabad.
Homes have an edge in Pakistan, because single-family houses are easily customizable, and can be altered according to the owner/ resident’s taste. Moreover, living in a home gives a lot more freedom compared to living in an apartment.
Vacation Homes or farmhouses are mostly built on hill stations. These secondary residences are mainly used for vacations and recreational purposes. However, Islamabad Gulberg Green Farm Houses provide a perfect opportunity where you can live in a farmhouse and enjoy the safety of a gated community at the same time. Farmhouses are definitely the best property investment in Islamabad 2021.
Cooperative Housing is where one becomes a cooperative owner of the building when one becomes a shareholder in a company that owns a specific residential property. Even if one holds just a part of the building, instead of the whole building, one can use that owned section of the building for any use one intends.
Commercial Real Estate
It involves both plots and buildings. Monthly rental income is one of the major sources of cash flows in this case.
Industrial Real Estate
It mainly includes buildings and properties used for manufacturing processes. There are warehouses present in the vicinity as well, which can be used for bulk storage. These buildings can be used for several purposes like research labs, stocking products, or distribution of goods. Commercial property investment in certain Real Estate properties can also be categorized as industrial real estate like shops and warehouses.
It is basically used in reference to a plain land that can be used for farming, cultivation, gardening, raising cattle, or ranches. Usually, there is a small construction on such land, which provides shelter to the land caretakers.
Now that we have discussed what Real Estate is, let’s see how this industry actually works.
Real Estate Industry Terms
The real estate industry significantly impacts the well-being of an economy. A stable and prosperous real estate industry not only ensures safety and growth for individuals and businesses, but it also attracts foreign investors. Since safety and growth are the two main concerns of foreign investors, therefore, Real estate is a deciding factor when it comes to business and GDP.
Here are some of the terms that can help you enhance your performance in real estate investing as a contributor to this industry.
Construction of new buildings is an indirect contributor to GDP. It is an important factor of ‘Investment’. Residential & Construction Investments include all types of different buildings.
New home buildings mean the construction of residential properties. In Pakistan, especially, it is one of the deciding factors for measuring living standards, hence GDP.
Real estate agents help property holders, big businesses, and investors to buy and sell all types of properties and they charge their commission for doing so.
Real estate agents are further categorized into two types: seller agents and buyer agents.
Sellers’ agents help you find buyers, price your property, set and negotiate your terms and conditions to the buyer or buyer’s agent. They help you get the best possible price for your property.
Some seller agents also help rejuvenate your property to get better prices, while doing investment in real estate.
Buyers’ agents are there to act on behalf of the buyers. They help the buyer find the best possible property according to their pocket. They can also negotiate the buyers’ terms and conditions to the seller or sellers’ agent. Buyers’ agents have utmost importance because they have the ability to identify and avoid unsafe and fraudulent deals.
How Real Estate Investment Works
Everyone engages in real estate at some point in their lifetime. Whether you are buying or selling, you must keep in mind several important factors to ensure a good deal. Make sure that the property you are buying will appreciate. What is the status of taxes? Are you buying or selling on or better than market rates? Such questions can be hard to find answers to all by yourself.
Collecting information for the whole market, and making patterns and trends out of it not only consumes a lot of time and is hectic, but also requires a certain level of expertise. Hence it is crucial to contact a good real estate agent. Real estate agents not only keep fraudulent dealers away, but they also match you up to the sellers and buyers that fit your requirements and needs. Agents turn this giant task of Investment in real estate into a simple matter for you.
In order to ensure that you get all the right information and a true picture of the market, hire an agent. We at Amigo Real Estate, have a team of real estate experts, ready to help you out. All you have to do is contact us here: +92 331 6126446, relax, and let us do your job for you.
Or visit our website to get a virtual view and information related to real estate. Our online labelled map feature makes it easier for all visitors to get up-to-date information about which plots are available, their location, prices, area, and conditions. Get all this information from the comfort of your home.
Don’t forget to call us before you make your investment decision. We value your time and money. And we believe you value it too.