What Is the Best Type of Rental Property?
Overview
Pakistan is becoming one of the major markets for rental income because of the increasing population in the urban areas. The cities are becoming more populated and they are bringing more business as they will rent houses, own their business, and in short, keep the economic cycle running. But when it comes to investing in best type of rental property, people usually are inexperienced to make an informed decision.
Also Read: Best Areas To Find House For Rent In Islamabad
Types of Rental Properties
Houses
Houses are the main attraction for the people who are willing to rent a place without any extensive investigation about the tenants. There are many things to consider before you invest your money in a house from a rental income point of view.
The first thing that needs to be considered is that the house must be located in a safe and secure environment. This will not only increase the rental income but it will attract more tenants. You will have steady tenants since people have day-to-day commitments and they cannot shift easily which ultimately means steady income for you.
Apartments
With the current wave in the market and people preferring a vertical living experience because of the low maintenance cost, an apartment is a more convenient option for investment.
The rental income from an apartment is also steady as a house since the tenants live in a place for a longer time. Apartments can provide similar value to your money if you are willing to invest on a low budget.
But you would have to consider the building in which you are investing your money. This will reflect in your income as the families tend to rent an apartment in a peaceful location where the schools and medical facilities are close to the building.
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Vacation Rentals
It is a relatively new concept for the market of Pakistan but with the use of technology, people are more open to ideas like vacation rentals. With new projects like Whispering Pines Resorts in Islamabad, people are becoming more interested in such ventures.
Tourists are also attracted to such locations because of the serene environment and luxury features. And they are even willing to pay a premium on their stay. But it is wise to consult an agent before investing because it will require proper management in the future as well.
Also Read: How To Invest In Real Estate And Get Rich
Offices
Many multinational companies prefer to save their capital cost by renting office space. This office space can be in a house, or a commercial building. The reason that commercial office spaces are more attractive is because of the proper channel of rental income.
All the income is properly documented and the transactions are done on time. The tenants are more reliable since you can verify their records from previous owners and check their registration with the concerned government institutes.
Shops
If you are willing to invest in a shopping mall, it promises to give back huge returns on investment. Since the already functioning shopping malls are mostly sold out or are expensive to purchase a single shop in it, it is better to look for a developing project.
It is important to research before investing in a developing project. You can always rent out your shop to a local or an imported brand and earn a steady income.
Also Read: 7 Tips To Invest In The Best Properties Of Islamabad For Rental Income
Conclusion
In conclusion, to ensure that you do not face a dilemma, it is very important to identify the best type of rental property that will fit your investment. All the options above are suitable for anyone who has an understanding of the real estate market. But it all comes to individual preference and budget limitations.
To buy the best rental properties and get expert advice before investing, contact Manahil Estate or call at 0345-5222253
