If you have the necessary cash, it is much easier to invest in real estate with it. And, if you want to achieve financial independence as quickly as possible, you will need to save a lot of money. But the truth is that every business, including real estate investing, begins with a small amount of capital. Many modern-day entrepreneurs can get off the ground simply by having an intense dream and putting in a lot of effort.
This article lets us guide you on how to get into real estate with little or no money.
Why Should You Be Investing in Real Estate?
Real estate investing is a mix of entrepreneurship and pure investment. It is possible to start and expand a real estate investing business from the bottom up, but it is not always uncomplicated. You can then live off your investment income for the rest of your life as your business matures. As a result, employment becomes optional, and you can spend your time doing whatever you choose to do.
So, let’s discuss the strategies of investing in real estate with little money.
Become a Real Estate Agent
You might establish a side business as a real estate agent to start gaining experience and earning money. It will be beneficial to observe, learn and implement before entering the world of real estate with a full-time career. It is a terrific way to learn about real estate transactions and the general real estate industry, even if it’s not precisely investing. Once you gain the obligatory expertise, you can begin with small investments.
Every country is a little different, but you will almost always be required to take a particular number of classes. After that, you must pass a comprehensive exam and pay your license fees. There are many different types of businesses and business models to choose from, so you’ll have to choose one that suits you. The perfect place to begin would be a broker’s firm where you can practice your license and learn under his mentorship.
Wholesaling with Little Money
Wholesaling refers to finding highly discounted items and swiftly reselling them for a profit to other bargain seekers. In many circumstances, you can make a profit on a wholesale trade with very little money. You get the property under contract or buy it before reselling it for a profit with wholesaling.
Wholesaling is not the ideal first-time business model that it is typically portrayed to be. For new investors, the returns have been mixed. The issue is that wholesaling is a sales-oriented industry. It implies you must be skilled at making numerous proposals and being repeatedly rejected. Yet, if you’re strong at sales, I believe that working as a real estate agent is a more straightforward and low-risk approach to start making money. You can move on to wholesaling or include it in your existing agency business.
House Hacking with Little Money
One of the possible ways to get started investing in real estate is through house hacking. It means you figure out a way to make money from your home by renting it out. Moving into a compact multi-unit property, such as a duplex, triplex, or 4-plex, is a traditional housing hack. The extra units are then rented out for income. You might even get creative and rent out extra bedrooms to roommates, a basement apartment or the guest room. You can do all of this quickly with little money and experience.
Live-In-Then Rent with Little Money
House hacking is a close cousin of the Live-In-Then-Rent method. In essence, you move into a house, prepare it for rent, and then keep it as a rental once you leave. To make this methodology work, you will need to purchase a more modest home to rent out. You can benefit from small-down-payment loans for owner-occupants in the same way that you can from house hacking.
You will not need to live next door to your tenants, unlike in-house hacking. People with families will benefit more from this technique because a house is typically larger than an apartment. Only three or four Live-In-Then-Rent properties will be enough to provide you with an excellent rental portfolio for many years.
Using a Lease to Invest in Real Estate
The lease option is a means to invest in real estate without spending any money. The property owner charges the buyer a monthly or yearly premium in higher rental payments when they choose the lease option. The remainder of the rental fee will be applied to the purchase price. The investor might purchase investment real estate with a higher rental cost under this agreement.
Creating Partnerships to Invest in Real Estate
Real estate partnerships are a popular way to participate in real estate with little or no money. If you wish to buy a home, but the price is out of your budget, an equity partnership may be the solution. An equity partner is a person you bring into a deal to assist in financing a property. You can establish partnerships in various ways, and it is up to the buyer and partner to agree on a more practical structure.
Bank Loans to Invest in Real Estate
You don’t need to fall in love with the property if it is an investment rather than a place where you will dwell. Look for a property that the banks like, and you may be able to reduce the amount of money you need to set aside. They’ll offer you a larger loan to value ratio if you buy the appropriate kind of property in the applicable postcodes.
Conclusion
Sigma Propertiesbelieves that, little by little, one walks far. So as a beginner with less money to invest in real estate, we suggest that you take your time and go with the investment method that is the simplest for your shoestring budget.
A real estate investment can provide continual passive income while also proving to be a sound long-term investment if the property value rises tremendously over time. You may even incorporate it into your entire wealth-building strategy.
Which one is Easier to Get Rich on, Stocks or Real Estate?
Which is better for an investment: Real estate or stocks? That is the question that so many of us desire to know the answer to get wealthy. You will have to consider many factors to know what suits you. Your financial situation, risk tolerance, personality, and long-term results all play a role. Your decision to invest in real estate or equities will be influenced by where you are in life.
There are stock market tycoons and real estate tycoons who are doing well. Both real estate and stocks can make you wealthy. If you are striving for financial independence, you should own both stocks and real estate. It will then be up to you to determine the percentage weighting of each asset class in your portfolio.
Real Estate or Stocks?
Individuals require an investing strategy that meets their budget and needs, whether they plan for retirement, save for a college fund, or collect the residual income. Let us see why real estate is a better alternative to develop wealth than stocks in the dispute between real estate and stocks.
Why Real Estate Is Better Than Stocks
A bright place to start is to compare real estate investing to stock investing. The risks and opportunities in real estate and stocks are not the same. Real estate can be a viable alternative to shares or stocks in the right circumstances, giving lower risk, higher returns, and greater diversification.
More Control
If you are the kind of person who likes to be in charge of things, you will prefer real estate overstocks. You are the sole boss of every physical real estate investment you make. As the boss, you can make renovations, lower costs (refinance your mortgage now that rates have dropped to historic lows), boost rents, attract better tenants, and advertise your property appropriately.
You have no influence over your investment as a stockholder of a corporation. Furthermore, you never know what goes on behind closed doors. However, in real estate, if your electric bills are excessively high, you can replace your light bulbs with more energy-efficient ones and take other cost-cutting measures. If you are losing money, you will notice it right away. You will be able to take steps to better any situation.
You are still at the mercy of the economic cycle, but you have a lot more flexibility with real estate when making wealth-building decisions. But with stocks, you are a minority investor who puts his or her faith in management when you invest in a public or private company.
Tangibility
In contrast to stocks, a real estate investment is tangible. You can stand before your investment, whether it be a house or a shop and know that your investment is suitable before your eyes. You can easily keep track of how it’s progressing. If you only own stock in a corporation, that is an intangible investment. There’s nothing to show your family and friends, and most businesses won’t let you sit in on their meetings to observe how they operate!
Real estate appeals to many potential investors because it is a physical asset that can be controlled while also providing diversification. Real estate investors who purchase property have a tangible asset for which they can be held responsible.
Bonus of Leverage
In a rising market, leverage is a fantastic thing. Even if real estate tracks inflation over time, a 3% increase on the house with a 20% down payment results in a 15% cash-on-cash return.
At this rate, your equity will have more than doubled in five years. Stocks, on the other hand, generate around 7%–10% annual returns, including dividends. While some stock investors may buy on margin (paying only a portion of the company’s value), this is a sophisticated and high-risk move usually made by experienced stock investors.
Fraud Prevention
Real estate wins here, too, in terms of security. It is harder to be deceived in real estate since you can physically inspect the property, conduct a background check on the tenants, verify that the building is genuinely there before you buy it, and make repairs yourself. And even if your investment goes wrong, you can tackle the situation conveniently. When it comes to stocks, you must have faith in the management and auditors.
External Factors are less Influencing
Real estate is a local business. You will be better protected from the national or global economy if you buy in a financially stable region. The fact that Europe is exploding is unlikely to have an impact on the rent you can charge.
More people want to buy homes as a result of COVID-19 since they are spending more time at home. As more investors seek the safety of bonds, the worse things become, the lower mortgage rates tend to go. As a result, real estate not only provides solace during times of uncertainty but also becomes more inexpensive. As affordability improves due to lower mortgage rates, demand rises, pushing prices even higher.
A Safer Investment
An investment in real estate is better as even though real estate is not as liquid as the stock market, it provides long-term cash flow and the potential for appreciation. Being a tangible asset that provides utility, real estate is fundamentally less risky than stocks. You won’t wake up one month and discover that your real estate is worth 32% less than it was in March 2021.
Real estate investors can make more money since they are more willing to acquire debt. Returns are magnified by debt (and losses). However, real estate tends to gain in value by at least 1% per year over the Consumer Price Index in the long run.
Conclusion
Real estate is typically a more comfortable investment for the lower and middle classes because they have grown up hearing about the necessity of “having a home” from their parents. The upper classes often learned about stocks, bonds, and other securities during their childhood and teenage years.
We atSigma Properties have seen that both real estate and stocks have the potential for long-term financial success, but they also have pitfalls. When selecting the ideal investment plan for you, the most excellent method to mitigate risk while maximizing potential rewards is to diversify as much as possible.
Upcoming Budget 2021-22 and Consequences for the Real Estate Sector
The upcoming Budget 2021-22 promises exceptional stability for the real estate sector. There are new government reforms set in motion that shall change the image of real estate for the future. We can prepare ourselves for favourable consequences only, as those are what await the real estate sector.
Impact of Capital Market Incentives
In the upcoming Budget 2021-22, the government is likely to provide capital market incentives by implementing viable ideas from the Pakistan Stock Exchange Limited (PSX), such as reducing capital gains tax (CGT) on securities disposal.
The Pakistan Stock Exchange Limited (PSX) has submitted its budget recommendations for 2021-22 to the Ministry of Finance. Before holding direct talks with stakeholders in the coming days, the Finance Ministry has tasked the FBR with calculating the revenue impact of each proposal.
Due to these proposals, Pakistan’s capital market saw strong growth over the years in market capitalization. It peaked at around PKR 8 trillion on January 30, 2020, but then plummeted to around PKR 5.7 trillion on April 1, 2020, due to the global downturn caused by the pandemic. Pakistan’s national economic statistics have become unpredictable and pessimistic. The first half of fiscal 2020 revealed some clear signals of an economic recovery. Yet, given the current circumstances, the journey to long-term sustainable growth is projected to take time; yet, the turnaround efforts are well underway. But we can see how positive an impact these capital market incentives have had, living up to our expectations. Given the implementation of solid capital market structural changes, Pakistan has enormous potential.
Promotion of Baluchistan’s Tourism Sector
The government of Baluchistan intends to set aside a significant sum in the fiscal year 2021-22 budget for the development and marketing of the province’s tourism sector. The administration of Baluchistan is taking innovative steps to promote and enhance tourism infrastructure in the province’s different tourist attractions.
There are advantageous circumstances to be enjoyed due to the proposed projects as they will appeal to both tourists and investors interested in investing in the province’s coastal areas. The new projects would expand tourist facilities, hotels, rest houses, and restaurants and establish additional tourist information centers to give travelers relevant information.
Impact of Petroleum Prices
To benefit the citizens, the Prime Minister has chosen to keep petroleum product prices the same as they were on May 1, 2021, and a fortnight before. To preserve the same rates, the government must alter the Petroleum Levy and Sales Tax on SKO and LDO.
Maintaining the current pricing will cost the government PKR 2.77 billion in revenue. From May 18 onwards, the following prices will be implemented:
Petrol PKR 108.56 / litre
HSD. PKR 110.76/litre
SKO. PKR 80.00/litre
LDO. PKR 77.65/litre
Lower petroleum prices have a lasting positive impact on the economy, so this decision paves the way for fortunate consequences. Even though the government loses a substantial amount of revenue, the conventional wisdom holds that when individuals spend less at the petrol pump, they will automatically send it elsewhere, as if by some flawless law of mathematics and economics. Millions of individual decisions, many of which are influenced by psychology, affect aggregate economic activity.
Thus, the immediate expectation of productivity and future success comes from this decision of the Prime Minister.
Government Aid for the Construction Sector
In the Budget for 2021-22, the Pakistani government provided aid for the real estate and construction businesses. In this Budget, the government has slashed taxes and allocated funding to help the building and related industries. According to a government official, it is an attempt to reinvigorate the country’s economic growth, and it would provide job prospects. Moreover, the cement FED has been lowered from PKR 2 to PKR 1.75 per kilogram.
Likeable consequences are awaiting the construction sector due to these incentives. The building industries have greater ease to contribute to the nation. All sectors related to the construction sector shall prosper directly, and the sizeable economic growth shall only know success.
Prime Minister Imran Khan has laid the Naya Pakistan Housing Scheme’s foundation to provide lower-cost housing to low-income Pakistanis. The country has been struggling with economic downfall, trade imbalance, low agricultural productivity, and many more. The government believes that the housing sector, which includes finance, construction, and related building materials, is the only one that can handle all of these issues simultaneously. The Prime Minister believes that its housing plan will improve the country’s economy and banking sector.
The government shall provide PKR 30 billion subsidies to the Naya Pakistan Housing Authority. This subsidy is one of the relief packages of the upcoming Budget 2021-22, and its consequences shall be fruitful for the nation. The working class shall have decent homes to reside in, the unemployment rate shall decrease, and the economy will receive new wings of sturdiness.
The request of the American Business Council (ABC) in Budget 2021-22
The American Business Council (ABC) of Pakistan has requested that the Federal Board of Revenue (FBR) take appropriate measures in the upcoming Budget (2021-22) to encourage Pakistan-born Americans to invest in projects, real estate, and open bank accounts.
The ABC’s budget recommendations for 2021-22, which were submitted to the FBR, revealed a shift in Pakistan resident status from three to six months (preferably nine months). This change will undoubtedly encourage the diaspora to see Pakistan as a viable investment option.
It is also requested to eliminate the need for a no-objection certificate for Americans of Pakistani descent to invest, establish, and manage businesses in Pakistan.
Any person of Pakistani descent should be entitled to choose his field of business in the same way as a local Pakistani citizen can.
Possibility of the Revival of Amnesty Scheme
In 2018, Pakistan launched a tax amnesty program that generated up to $ 1 billion (PKR 121 billion) in tax income from individuals, associations of persons, and corporations who declared their assets under the program.
Currently, the government is not inquiring about the source of funds used for construction (by builders and developers). In 2021, the government shall maintain the fixed tax on builders’ sales and up to a 90% decrease in taxes on low-income people’s house purchases. But there is a chance that the government will reintroduce the amnesty scheme since the aftermath of the global pandemic is reaching its ends slowly. It is a predicted step that the government might take to induce more money in the development sector.
Conclusion
Since the pandemic ratios are falling in Pakistan, the tourism sector, construction sector and real estate sector are likely to receive new grants and speedy development. Resultantly, there will be a substantial influx of money that shall spread in all the sectors. The upcoming six months will be critical and precious for the real estate sector as the absence of the pandemic will determine many successes.
We have witnessed the arising of many modernistic new housing schemes in Islamabad in 2021. Since living in proximity to the Federal Capital is the dream of every citizen, this dream has been brought to reality by esteemed developers and venture designers. The goal has been to deliver excellence, affordable housing and tranquil environments of safety.
The new housing schemes in Islamabad 2021 are as follows:
Nova City Islamabad
Discovery Gardens Islamabad
Multi Gardens B17 Islamabad
Mumtaz City Islamabad
Naya Pakistan Housing Scheme
Eighteen Islamabad
Nova City Islamabad
The Nova City Islamabad is an exciting new venture by the Nova City Developers. They are renowned for their high-quality framework development and have already completed several successful projects. Additionally, under the brand “Nova City Schools,” the owners are market leaders in Pakistan regarding technology and innovation-based schools.
Nova City Islamabad has given special consideration to selecting an appropriate and accessible location for its housing project. The lodging society intends to construct a separate gate on the Rawalpindi Ring Road, making it more accessible from practically all directions in the city. Nova city, Islamabad, is situated between peacefulness and modern infrastructure, implying that the society is ready to present its citizens with tranquility. The New Islamabad International Airport is only a few minutes away.
Discovery Gardens Islamabad
TheDiscovery Gardens Islamabadis yet another brilliant new housing scheme in Islamabad 2021. It is a joint venture of the Falaknaz Group and the ABAD (All Pakistan Builders Association). Both of these companies have been delivering high-quality projects since the 1970s. They aim to provide a luxury lifestyle with the preservation of nature’s beauty to applaud and enjoy.
The location of Discovery Gardens Islamabad is chosen strategically to provide inhabitants with access to all of the region’s commercial, economic, and social centres. It is located in Mouza Mujahid, near the New Islamabad International Airport, on the main Islamabad-Lahore highway. The Thalian Interchange in Islamabad is 5 minutes away from the lodging society, while the Rawalpindi Ring Road is just 3 kilometres away. The housing scheme is at the eastern side of the CPEC Route.
Multi Gardens B17 Islamabad
When discussing the new housing schemes in Islamabad 2021, it is implausible not to mention the Multi Gardens B17 Islamabad. It is a visionary housing scheme founded with the sole purpose of providing an exuberant environment of technological marvels, world-class amenities and ideal accommodations. It has a competitive edge of being a CDA Sector. In 1989, the housing scheme launched one of its first housing projects, Islamabad Gardens in Sector E11/3.
B-17 enjoys a favourable location in Islamabad Capital Territory’s Zone II. The housing scheme is situated so that it is bordered on one side by the GT Road and the other by the Peshawar-Islamabad highway (M-1). The Hills of Margalla are beautifully imposing beside the housing scheme. The area is located a few kilometres from the Islamabad International Airport and housing societies such asBlue World Cityand University Town Islamabad.
Mumtaz City Islamabad
The Mumtaz City Islamabad is an embodiment of splendour, technological infrastructure and impressive amenities. It is a project by the Mumtaz Construction Company (Pvt.) Limited. Mumtaz Construction Company (Pvt.) Ltd. (MCC) is a Pakistan Engineering Council (PEC)-accredited civil engineering firm with category “A,” No Limit, and ISO 9001-2008 certifications. The company was founded in 1982. The company’s headquarters are in the Sector I/10 Industrial Estate in Islamabad. It has been involved in major civil, electrical, and mechanical projects around the world for the past 28 years.
Mumtaz City’s location is advantageous due to its proximity to the New Islamabad International Airport. Some of the vital connecting roads that go to it include the Srinagar Highway (formerly known as Kashmir Highway) Extension, Motorway Link Road, and Fateh Jang Road. It is also linked to the M1 Islamabad-Peshawar and M2 Islamabad-Lahore highways. The Tarnol Fateh Jhang Road is only 2 minutes away from the lodging society. Other well-known projects in the region of Mumtaz City include the Capital Smart City and Top City.
Naya Pakistan Housing Scheme
The Pakistan Tehreek-e-Insaf has established a housing venture named theNaya Pakistan Housing Scheme to provide decent accommodations for the low class of the society. Imran Khan wishes to tackle the age-old problems of the nation, so he decided to work on the provision of housing to the homeless as this will lift the economy, adjust the trade imbalance, boost the employment sector and raise morale.
For this housing project, the Capital Development Authority (CDA) has authorized seven acres of land in Islamabad’s Mauve Area. They also approved the Federal Government Employees Housing Foundation (FGEHF) to receive 508 Kanal of land near Askari-VI for the Naya Pakistan Housing Scheme in Islamabad. It is undoubtedly the most beneficial one among the new housing schemes in Islamabad 2021.
Eighteen Islamabad
Last but not least among the new housing schemes is Eighteen Islamabad, developed by the Orascom Developers, Saif Group and the Kohistan Builders and Developers. This project is worth USD 2 billion, a supreme epitome of elegant landscape, advanced architecture and sustainable living. Kohistan Builders and Developers has effectuated the development of Zarkon Heights in Islamabad’s sector G-15. Mr. Naguib Sawiris, an Egyptian billionaire, owns the Orascom Developer Company. Mr. Naguib Sawiris previously held Mobilink, one of Pakistan’s major mobile networks.
The project is situated on the Srinagar highway, 5 kilometres from Golra Mor and 3 kilometres from the Lahore-Islamabad exit. Eighteen Islamabad is conveniently close to the Federal Capital, and it is only a few kilometres away from the New Islamabad International Airport. The housing scheme shall be the focal point of grandeur, luxury and upscale living.
Conclusion
The real estate sector shall reach significant success in 2021 due to the government’s keen interest in the housing and construction sector and the private development companies striving to reach new heights of quality. The strength of the real estate sector originates from the new housing schemes in Islamabad 2021. It is because the investors are concentrating all of their energies on the property in the Federal Capital.
In many urban cities, the concept of vertical living is preferred over horizontal development. For this reason, Park View City Islamabadoffers the Park View Terrace Apartments. One of the numerous advantages of housing societies such as Park View City is that they come with all of the fundamental amenities and demands of a city plan. They are essentially smaller cities and towns, although they are mostly linked to the nearest big metropolis.
Apartment complexes are also incorporated into the housing society’s master plan and residential and commercial housing plots. This factor contributes to the housing society’s variety and diversity. Furthermore, it provides individuals with more choices in terms of where they choose to invest their money. They can choose whatever their budgets allow: a house, an apartment, a villa, etc.
Apartments are a terrific and economical housing option for anyone who does not enjoy living in a house. Or who wishes to live in a smaller space. An apartment is also a superb investment opportunity. They are far more convenient and cost-effective.
Park View City
Islamabad has been one of the most important cities in Pakistan to see developing housing societies like Eighteen Islamabad and Multi Gardens B17 Islamabad. Many citizens are interested in investing in this city because they want to be close to the Federal Capital.
The Park View City is one of the most prestigious housing societies currently under construction. It contains a botanical garden, which will make the residents feel that they are dwelling in paradise. It is a CDA approved lodging society close to Chak Shahzad. This lodging society is being planned and built-in Islamabad’s zone IV, bordered by the lush green mountains of Bani Gala.
It is being built using modern architecture and design to meet the needs of the residents, who will have access to every world-class facility right at their doorstep. Having a land of 1200 Kanal, Park View City offers its investors and prospective residents a wide range of facilities and services.
Master Plan of Park View City
The master plan of the lodging society is given below to give you an idea of the marvelousness that awaits you. It contains many residential and commercial blocks. The developers have genuinely outdone this project.
Park View City Terrace Apartments
The renowned Park View City offers terrace apartments and the other attractions it has set upon the table. These apartment structures will be top class and will meet international standards.
Apartments are ideal for folks who choose to live in a compact, comfortable space rather than opting for a large property. As the name implies, these are terrace apartments, which means that each apartment will have its modest terrace. It doesn’t matter what kind of apartment it is. All of the apartments have been designed in the same way by the developers and designers.
A balcony or terrace is an imperative feature in any apartment, as it provides a more pleasant mood to the overall space and style.
Park View City Islamabad is a fantastic site to invest, particularly as a housing society close to the city center. Not only that, but the lodging society also has a wide selection of apartments to choose from, so it is a win-win situation overall.
Types of Bedroom Apartments
Park View City Terrace Apartments provides investors with three different bedroom apartments to select from, depending on their budget. The following are the many types of bedroom apartments available:
One Bedroom / Studio Apartment
Two-Bedroom Apartment
Three-Bedroom Apartment
These apartments are brilliant in every way. They will provide the residents with a living experience unlike any other. They are also built to the highest international standards. Any of the apartment complexes can be chosen and invested in depending on one’s preferences and budget.
Payment Plan for Terrace Apartments Islamabad
The instalments and down payments are shown in detail below. The terrace flats are obtainable in three kinds of bedroom apartments.
Depending on your budget, you can choose from any of the housing complexes available. These apartments are well worth investing in, especially if you are seeking a long-term, secure investment.
Amenities
The apartments offer you a family-friendly environment with lush greenery to behold, along with the following amenities,
Laundry services
Valet parking
Indoor swimming pools
Sports complex
CCTV Security Surveillance
24/7 Supply of water, gas, and electricity
How to Book an Apartment?
To book an apartment in this exceptional lodging society, you can contact us at Sigma Properties and visit our office. The applicants must pay the 20% down payment at the time of booking.
For reservations and further information, you can consult with our experts online
You can also make online bookings.
The booking form is available on the lodging society’s official website. You can download it from there
Fill the form out with all the essential information.
Deposit in the form of pay order, cash, or demand draft payable to Sigma Properties.
Submit your booking form, as well as all supporting documentation and payment order.
Required Documents
The documents you will require for booking are as follows:
2 Copies of CNIC of Applicant
2 Photos of Applicant
2 Copies of CNIC of Nominee
Conclusion
A relaxing living environment is the necessity of every individual. These apartments have been presented to cater to such needs of the citizens. The Park View City Terrace Apartments shall live up to your expectations and exceed them simultaneously with the reflection of world-class technology and luxury living.
Many developers and designers have chosen the vertical construction concept rather than a more horizontal construction pattern. More land will be spared and used in other ways as a result of this.
If you are a bachelor looking for decent accommodation or a family man looking for a perfect place to raise your children, let us guide you in booking your apartment. Get on with it as the prices are excellent at the moment and will only rise with time.
