Investors often question where they should put their wealth. The top two mediums that come to mind are real estate and stocks, both offering long-term benefits to investors.
When it comes to investing in real estate, one can buy property in Pakistan from abroad, as an opportunity to earn passive income while also having a vacation home. One Homes makes this possible for expats living in the US, UK or anywhere else in the world.
However, before investing, you should be aware of the pros and cons of real estate and stocks. The following information will give insights on both investment avenues:
Stocks
Here are some pros and cons of stock investment:
Pros
Highly Liquid: Investors can easily sell off their stocks if straddled with an emergency to get immediate cash.
Easy to Diversify: Investors can buy stocks in more than one company or invest in mutual funds to distribute the risk of losing money.
Cons:
Taxes: Selling of stocks can trigger big tax costs for the investor.
Volatility: Stock prices can experience significant changes in prices over a short period.
Emotion-driven Investing: Investors can have emotional interest or disinterest in certain companies, leading to bad investment decisions.
Real Estate
Here are some pros and cons of real estate investment:
Pros
Passive Income: Most real estate investors make money by renting out the property.
Tax Advantages: Rental income has lower tax rates than ordinary income.
Hedge Against Inflation: Inflation causes property prices to rise as well, protecting your investment.
Cons
Expensive and Illiquid: Property buying requires a lot of cash upfront and is rather difficult to cash out when you are in a bind.
Management Cost: It can cost you a hefty amount to ensure the upkeep of your property.
The Bottom Line
Real estate investment emerges as the best option for risk-averse investors, as it is more accessible and transparent if you have a reliable partner to successfully execute this investment. While stocks are subject to market ups and downs, real estate is a tangible asset that can actually protect your investment.
One Homes, with a number of high-end properties under development, offers investors seamless real estate investment opportunities in Pakistan. We don’t just open the door to the Pakistan property market for expats but also offer rental management for investors interested in a passive income through their property.
Now, if you’re ready to explore apartments in Pakistan, check out our luxury apartments today!