In many parts of the world buying real estate is one of the most common way for investment, it has many advantages which includes rental income, the ability to turn it into a second home and an extra source of income as well. For a successful investment, it always depends on the time and place in which you are investing. Buying a property either house or flat shall be considered as one-way ticket to wealth. Buy, hold, and be rich. That worked for all generations, in countries like India and Pakistan.
There are many cities in Asian countries that are expected to see growth in population and development over the coming decade, one of them is Islamabad as well, The Capital of Pakistan. Most of the time Investment comes with ripple effect. Trend is, that people are looking for pecuniary chance, they wait for it and then start investing. Naturally, this gives rise to investment opportunities for property investors and real estate developers.
When you invest in property, you invest in something physical. You can touch it, feel it, look at it, point out your finger, and say, “I am owner of that”. Psychologically that is very important for many people. You can always improve it, modify it, and change it to enhance its utility and value proposition.
Stocks generate affluence over the long run, however majority of the investors are too emotional, and stocks are too unpredictable to get benefit every time. Mostly new investors end up losing their money because of psychological aspect.
So psyche of investor is very important and everyone is different from one another but in the society in which we live, it is always valuable to invest in something that is tangible.
It’s almost impossible to be defrauded for investment in property as compared to stocks. If you have property you can physically have evidence of it before you buy, you can even always inspect your property. But in stocks, you have to rely on the management and the auditors.
Before buying property you can make your investment strategy, you can decide what and where you want to buy and you can negotiate the price. You can make decisions that may increase or decrease the profit of the property. In fact you have control over most of the elements.
But in stock you have no control over the decisions of management. You cannot increase the company’s productivity. You can’t trim the company’s costs. Only you can sit back after buying the stock and the only action you can take is, to sell. You have no control over other elements that may control its price.
There is another form of property in our markets which is more like stocks, I know you understood it. These are files of plots in new housing societies and new developments. I will write on it some other day in detail, I always try to keep real property separate from plot files which are more like stocks.
If you want to be rich, and to make your life awesome you have to do what most people aren’t eager to do. You have to make a plan and have the right attitude, because people who makes more money they are willing to get out of their comfort zone, and taking new chances.