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Top 5 Ways to Invest in Real Estate

Top 5 Ways to Invest in Real Estate

Investing in real estate is very tricky as good returns are only gained if investment is made on the right time and also in the right way. To invest in real estate, you should first know the different types of investment options. Just select the best option to invest in real estate according to your circumstances. Here are the top 5 ways to invest in real estate sector.

Buy home for living and rent a portion

The first way to invest in real estate is to buy a home. Ideally home should be large so that you can live in it and also can rent out a portion. Buying a home has two advantages. Firstly you can save the monthly rent and at the same time you can earn money through renting. This money can be used to pay the mortgage. You can even save the money for your next home.

Buy to let real estate investment

Buy to let investment is generally considered as very profitable. Even when real estate market is down and prices fall, buy to let investment is still very profitable due to the constant stream of income in form of rent. The most successful real estate investors always have many buy to let properties. But before buying a home to let make sure that it has high rental yield.

Flip homes for high returns

The third way to invest in real estate is to flip homes. Home flipping is purchasing a home and selling it after some renovations at a profit. Home flipping includes the home purchase cost plus renovation cost and then selling at profit. Flipping homes is very profitable but bit risky. To flip home you should find the homes that are available at low rate but after some renovation can generate big profit

Invest in real estate projects

The fourth way is to invest in large real estate property projects like housings schemes and commercial projects. Mostly large real estate projects are not financed by a single person but by many investors on profit sharing basis. You should invest in large real estate projects after checking the past history of the developers. It’s also important to properly check the agreement to know the terms and conditions plus profit percentage.

Invest in Real Estate Investment Trust; REIT

The fifth way to invest in real estate is via Real Estate Investment Trust (REIT). Many real estate companies issue their bonds and shares. You can buy these shares. REITS are just like the normal shares. You can earn profit by selling shares when the rates increase. But before investing in REITS just check the past performance of shares. This will help you in selecting the best performing REITS.

Disclaimer

Investing in real estate is profitable but many people sustain huge losses due to the bad moves. To minimize the losses and to maximize the profits always check the market and your finances. Never invest is a crashing market and never buy a home you can’t afford. All top 5 ways to invest in real estate are profitable. But you should select the one which is most suitable to you as per your circumstances.

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10 Comments

  1. Farooq Lari

    on   said 

    Dear Anwaar sb.
    Your silence on my query to find 5 marla plot in DHA Halloki Gardens Lahore on your guided price of PKR 35 lacs is a clear fact that dealers still rule the market no matter what happens in the FBR or DC rates or whatever market situation is. Fact is that prices have gained when a genuine buyer goes into the market to purchase plot for home construction. You cannot win the dealers market with your 10-20% reduced offer price. You wait for 2 weeks after giving reduced price and same plot increases by 5% when you again go back after 2-3 weeks in the market.
    I have been a keen follower of your blogs for the past 1-2 years where you have been a loud voice for reduction in plot prices. What has been happening in Lake City. prices of 10 marla used to be Rs. 60 lacs now reaching Rs. 80 lacs. I asked you for a plot in DHA Halloki and you have not been able to find 1 plot in your guided price.
    I rest my case here. I waited and judged by your articles that prices in Lake City will fall by 20-30% by February 2019 for the past 8 months. Nothing is happening there.
    I went to Halloki and quoted your guided price of Rs. 35 lacs. Not one dealer called back and infact your provided dealer stated me inflated price at Rs. 42 lacs (20% above your quote). I have lost my opportunity to buy plot anywhere now as prices are here to stay and no fall whatsoever will happen.
    Regards

    Reply
    • Farooq Lari
      I can understand your situation.
      I have suggested you to wait due to the new laws.
      Today I visited DHA Office in Phase 6 and there were just 6 file transfers.
      You can see daily filer transfer has reduced massively since 2016.
      I am still hopeful that prices to come down.
      So just a little more wait. Its better to observe the market as dealers are closing offices on daily basis.
      Definitely final decision is your.

      Reply
  2. Farooq Lari

    on   said 

    Dear Sir
    Called your guy. He said that Anwaar sb. has quoted you wrong and the minimum price for 5 marla is Rs. 42lacs. There is no plot whatsoever in Rs. 35 lacs at all. This is the point that I have been talking all along for the past 1 year that prices are not falling anywhere. How can I find plot in budget only Allah knows as all the predictions are wrong.

    Reply
  3. Farooq Lari

    on   said 

    Dear Anwar sb.,
    I hope you remember my request to kindly find 5 marla plot in DHA Halloki Garden Lahore in your stated price of PKR 35 lacs in a decent location. Any luck so far? Anxiously waiting for a response from your side. How can i contact you if you have already found something in the budget?

    Reply
  4. Farooq Lari

    on   said 

    Dear Anwar sb.
    Many thanks for your reply. I am much interested in buying in DHA Halloki Gardens as discussed above. Can you kindly find for me a 5 marla plot in decent location in the price of Rs. 35 lacs that you have said. I will be highly obliged as I want to construct house for my family.
    Regards

    Reply
  5. Farooq Lari

    on   said 

    Dear Malik sb.
    I need your expert advice & views about DHA Halloki Gardens (Phase XI).
    Q1. Is it good to live in with family?
    Q2. Does it have basic amenities (gas, electricity, sewerage, telephone, cable connections, park, mosque etc.).
    Q3. What are the repercussion of living in the society with a passing drain. How much far from drain is considered a safe investment and good to live?
    Q4. What should be my offer price for a 5 marla plot and also for a 8 marla plot?
    Q5. Is it easy to sell the plot/house there in case of emergency?
    Would like to have a frank and expert advice please.
    Regards

    Reply

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