This blog will thoroughly discuss the most talked about investment options in Pakistan to grow wealth.

In Pakistan, Real Estate investment is considered the most reliable and profitable investment option but many other individuals believe investment in stocks is more profitable, to end this debate we must say that both of these investment options are quite reliable and profitable if done right.

If you are planning to dive into one of these investment options, then we highly encourage you to learn the differences between these two options.

Investment in the Real Estate Sector of Pakistan

There are primarily two categories when we talk about the real estate sector of Pakistan, one is residential real estate and the second is commercial real estate.

When we talk about residential real estate it includes your home, rental properties, and house flipping while commercial real estate includes retail outlets, shopping malls, office complexes, and mixed buildings.

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Advantages of Real Estate Investment

It’s the Basic and Straightforward mode of investment

You simply acquire funds, choose a property and close the deal. After acquiring the property you either place the tenants or simply resell for a higher value. You don’t need to handle all this by yourself, but you just need a reliable real estate agent who can present you with the best available real estate options with great potential for higher value returns.

A tangible Investment Asset

Most people here in Pakistan prefer real estate investment solely because it’s a tangible asset and the owners feel more secure about their investment as they own it physically rather than purchasing a fraction of ownership in corporations through stock which makes them feel less in control of their investment.

A great option to counter inflation

Investing in real estate is considered a smart choice during inflation as in such times the purchasing value of money gets low day by day and if you invest it in the real estate sector it will not even retain the value but also return higher value returns.

If you are planning to invest in the real estate sector during inflation we would highly encourage you to avoid investing in popular neighborhoods and go for low-demand areas. 

Mode of Passive Income

If you own a property then you can use it to generate passive income as you can place tenants and earn a fixed sum of money every month. You can also increase the amount by 5% or 10% annually or you can resell the property with a substantial profit whenever you feel the need to liquefy your funds.

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0318 4567011
WhatsApp contact 0334 7011008

Investing in the Stocks Market of Pakistan

Shares of stock are essentially a form of security that indicates the holder has certain ownership in the issuing company and they are very easy to acquire. There are generally two types of stocks first is common and the second is preferred.

Advantages of investing in stocks

 

Stocks are highly liquid Asset

Stock trading is very easy and less time-consuming than real estate transactions which makes it a highly liquid asset. You can sell your stocks to free up the cash very easily which in the case of real estate can be locked up for months.

The stock market is also very risky and volatile as the prices can rise and fall very drastically, this volatility can result in both ways, either you will earn a huge profit or bear a total loss.

 

More diversity than the real estate

It’s a more easy way to diversify and build an expensive portfolio while real estate requires a lot more cash to buy different types of properties in different locations. Real estate also requires more time and maintenance. With stocks, you can easily acquire shares of several corporations with a relatively smaller sum of money.

The real estate sector in Pakistan has performed better than the stock market in past years. Risks are involved in every type of investment but investing in the real estate sector results in higher capital gains most of the time compared to investing in stocks.

Less expensive mode of investment 

Investing in stocks is relatively less expensive than real estate and one can easily perform multiple trading transactions with barely any transaction fee associated.

But there’s very less leverage over the money for investors investing in stocks compared to real estate investors. The real estate owner owns a property in literal means while the stakeholder owns a fraction of a corporation on paper.

Click to Contact us:

0318 4567011
WhatsApp contact 0334 7011008