H&H Builders and Developers

Is Rental Property Really a Good Investment in Pakistan?

The business of real estate mostly involves investments in properties that could provide you with
lifetime profits. People buy houses or apartments and use them as a rental investment. Such
rental assets are extremely valuable if they are bought at the right location.

Before buying a rental property you must be aware of the advantages it can bring. Following are
some reasons for you to invest in rental properties;

High Return on Investment


A small portion of your money will be used to borrow capital for any investment. Such
investment allows you to earn in the longer run. You can use the money from the tenants for not
only the marginal expenses but also for any interest on loans.

Homeowner Tax Benefits

There is a huge chance for you to be waved off from various taxes if you invest in a rental
property, such as:
Interest: the interest rate on the loan used to buy or improve the property can be reduced if you
are a landlord.


Depreciation: if the property is providing your income tax deductions can be applied and in this
the way you can easily deduct the cost of your property.
Repairs: the repair cost for different improvements in the house can be deduced easily from the tax
season.


Home office: if you meet certain requirements and are working from home, you are also eligible
to deduct home office expenses from your taxable income.
Insurance: Insurance premiums can also be deducted from any insurance policies used for your
rental investments.

Diversifying your assets

You will get the power of diversification if you invest in rental properties. If you want to get
the real benefits without involving any risk factor you must invest in multiple rental assets

located at different locations that appreciate over time. In this way, you will be able to build a
portfolio of assets that could provide you massive profit returns with increasing value each year.
The location is very vital if you want your investment to be successful. You must research the
market first and then invest in the area that can give you maximum profit returns. With time you
will be able to learn the trends and a more informed decision about the ideal market for
investment. In Rawalpindi, you can find such a market in Bahria Town. There are many projects
under development at this location that can give wings to your profit returns. One of such
projects that can be used as a rental asset is DISTRICT 567. You can buy apartments at
this prime location and can earn passive income.

Easy Selling Process

If you buy an asset but due to uninvited circumstances you are unable to use them. The selling
process for an asset at a prime location is very easy. For e.g, if you buy an apartment in renowned
projects like Goldcrest views. It will be very easy to sell such assets because many people are
eager to buy assets at this prime location.

Conclusion

Rental investments are one of the most ideal investments in real estate that can make you rich in
no time. It is the safest investment you ever make with a lifelong cash flow and minimal efforts
to manage it.