Should I Invest in Real Estate During Corona Crises?
If we look at the situation and the statistics of the world, the number of people being laid off from jobs is very high and not to mention business profits are going down the hill as well. Looking at the numbers one must feel these jobs or any business does bring good profit only in favorable conditions. If you want something stable with a handsome profit we believe investing in a property or land is the safest option. Let’s discuss in depth what are the pros and cons of investing in a real estate property in these circumstances?
Where to Invest?
Pakistan, located in South Asia, is the second biggest market in the region. Above all, low competition and a rapidly growing economy are only some of the benefits to attract interest in foreign investors. However, despite its size, it’s still relatively unknown among foreign companies and investors. Pakistan is also affected by the corona crisis and has taken measures in fighting against coronavirus. In the wake of the current situation, the Pakistan government has some favorable schemes for people to invest in Real Estate Pakistan.
Real Investment on Earth is Earth
Let’s look at how Earth is our biggest investment! As explained earlier, investing in the land will bring back the profit you need in many ways.
- In the wake of the situation, businesses are at a loss at the moment as most people think it’s the best time to buy/sell anything. Besides necessary medial/grocery items.
- People are migrating back to Pakistan as they cannot afford to stay abroad without a proper income. This pandemic has unbalanced the curve of people being unemployed or laid off from their jobs as companies can’t afford to pay their employees.
- At this point, the land becomes a luxury where you have a permanent shelter for your loved ones. That’s where investing in the land comes in!
- This earth we live on isn’t getting any bigger, so grab yourself a piece of it today! Whether you want to buy to invest in your future or to build the perfect retirement spot you really can’t go wrong!
The land value will never be down, it always gets you profit in some way or the other. You can build your dream home on it, a business or even rent it out to someone who will in return bring you maximum profit. Get to know the worth of the house. The Pakistani government has even bent some rules in investing in property since many people are migrating back to their country.
Imran Khan Relief Package for Construction and Housing
- The Source of income will not be declared during investment in the C&H sector. This is an interesting point, plus a big one because it takes ages for an individual to explain how they gather all the capital to invest in their property. If no questions are asked, why not take advantage of it.
- Rates on construction sector projects will be governed under a fixed tax regime. I.e max SqFt @ 210. There is a flexibility on the taxes per square feet a person invests in.
- Withholding tax rates on material & services related to construction will be exempted except steel & cement. Another excellent point, the material being used to construct any type of property will not have tax on it. It gives people the leverage to buy the finest material available in the market.
- Sales tax (PST) on construction sector services will be reduced as per province consultation. It will be decided by Provinces. It doesn’t matter where you buy land/property in Pakistan because it will vary province by province.
- CGT is abolished on the sale/ transfer of immovable properties. u/s 37 of ITO 2001. This point gives a great explanation of selling or transferring property to someone as their CGT is abolished for a moment.
- Till today construction was not considered as an industry from now onward industry status is granted to construction.
- The construction industry development board will be established to govern the industry-related matters.
- No change in Stamp duty
- No change in Registry relevant taxes except Capital Gain Tax
- The construction industry will start his work from April 14, 2020
At this point, an investment may seem risky because of the pandemic situation but in the real estate world, it’s the opposite. Real estate investment is a lifetime where land value does not usually go down but increases with time. Why not, start today and invest in something permanent, a place you can call home or start a business to support your loved ones. If we look at the comparison between investing now or later. The trends in real estate seem to go high later but now in this situation, we might see a curve in the prices, locations and buying power. It’s a good time to invest now as the government has bent some rules i.e taxes and relief packages for housing schemes.
Take good advantage of the time and stay positive, this time will pass too.
Also Read:
- Apartment Vs House: Which One is more Pocket Friendly?
- Top 7 Simple Hacks to Keep Your Home Safe from Coronavirus