How to Make Money in Real Estate
Investing in real estate can make you rich in a short span of time, but only if you’re smart and vigilant and prescient enough to make the right decisions at the right time. There are plenty of investment strategies and ways to make money in the property business. However, we need to remember that there are certain strategies that are good for experienced investors and others that benefit beginners more. For your convenience, we have listed some of the most useful tips for investing in the real estate business that can help you make an informed decision.
Without further ado, let’s get started.
WAYS TO MAKE MONEY IN REAL ESTATE
Real estate is a lucrative business but the prospect of entering the world of property transactions can be daunting. Why? Because there are many fears associated with the business. Investors are scared of losing their hard-earning money if the property scheme turns out to be a scam. Or they believe that they need to be a billionaire in order to invest in real estate. This is not always the case. You just need to be smart at identifying a profitable business deal.
Here’s a list of ways to make money in real estate.
- Rent Out Your Property
- Invest in House Renovation
- Vacation Rentals
- Renting Out an Office Space
- Renting Out a Portion
- Investing in Commercial Real Estate
Let’s discuss each of them in detail.
RENT OUT YOUR PROPERTY
One of the best ways of making money in real estate is to rent out your property. Some investors in Pakistan build a home for the purpose of renting it out later. It generates a steady stream of income and the investor can benefit from a rented property for a lifetime.
Make sure to buy the property in a neighbourhood which is popular and well-liked by the residents to generate a good revenue from your property. If you are building a home from scratch for the purpose of renting it out later, then take a look at these trendy features that will set your home apart from the rest.
If you are looking for ways to make money in real estate then try flipping houses. Flipping happens when a real estate investor buys a run-down home or a property that needs a bit of tweaking or complete renovation and later sells it at a profitable deal.
Usually, when an investor purchases a property to fix-and-flip it, they have to do it as soon as possible. The reason is that if the property is in the market for a longer duration, its value decreases. It is always a good idea to make the required changes to the property and then sell the house within a year to really reap the benefits of house flipping.
Moreover, make sure that you choose the property’s location first then buying the house itself. The location matters the most, even if you are investing in an old property. With a little tweaking, you can change the house’s outlook, but if the property is not situated in a desirable neighbourhood, the chances of you getting more profit out of the property would be less.
One of the best tips and tricks for making money in property is to use your furnished house or apartment for vacation rentals.
What is a vacation rental? Well, a vacation rental is an alternative to a hotel stay. When tourists or families want to visit Murree, they can either choose to stay in hotels or rent an apartment or a condominium for the number of days they plan to stay.
Those travelers who like to spend some time away from the bustling city life, book furnished apartments for a month. This is where you can generate a steady stream of income.
If you plan to invest in Murree, you can check out these studio flats up for sale with the starting price of PKR 22 lakh and going all the way to PKR 84 lakh. If you are looking for a bigger apartment in Murree, then check out the sales price of 3-bed flats in Murree, which start at PKR 78 lakh to PKR 2.65 crore.
COWORKING OFFICE SPACE
Here is how you can make quick money in real estate. Real estate investors are increasingly turning towards buying a commercial space and then renting it out. You can rent out the entire office or, if you like, provide a facility to cash-strapped entrepreneurs or freelancers who are looking for an office space but don’t really have the money to buy or rent an entire office; in such cases creating a coworking space is always a good option.
Shared office space is not only beneficial to real estate investors but also to budding entrepreneurs. Renting out meeting areas and conference rooms is common, but renting out ‘desks’ is also gaining popularity with time. Property owners have started renting out desks to those looking to share the mutual benefits of working in a shared space.
RENTING OUT A PORTION
If you want to make money in the real estate business by putting up your property for rent then you don’t need to rent out the entire property. You can easily dedicate a portion for rent.
Many investors buy a property and live on the ground floor, while renting out the first floor. You can ask the tenants these sets of questions to help you decide whether the tenant is right for you or not.
INVESTING IN COMMERCIAL REAL ESTATE
One of the greatest opportunities in real estate is to invest in commercial real estate. Focus not only on flipping properties but also on developing them. This way you can earn revenue by upgrading the property and then selling it to gain profit. You can also purchase a commercial property and make a shopping plaza or rent it out for an office.
Whatever you end up choosing, make sure you weigh all the pros and cons of buying commercial property. You can also take a look at our checklist for buying commercial real estate in Pakistan for more help.
If you are looking for some of the best real estate investments, then stay tuned to the best real estate blog in Pakistan. Don’t forget to write to us at firstname.lastname@example.org and we will get back to you. Subscribe to BLUE JAY Newsletter appearing on the right-hand side of the page.