Are looking to buy a flat? Here in this article, we shall discuss if it is myth or reality that flats are a good real estate investment.
Table of contents
- Why apartments are a good investment?
- Do apartments appreciate in value?
- Is owning an apartment building profitable?
- What is the lifespan of an apartment?
Why Apartments Are a Good Investment?
With the rapid increase in population, the land is getting shrinking for humans. In that case, the houses are getting difficult to buy as well as difficult to manage. That is why flats are becoming important investment opportunities. Moreover, the flats are easy to manage as compared to the houses.
There are multiple things in the houses which are not so easy to manage if the tenants live over there. Likewise, if you own a flat and you have tenants to live there, you will find it easy to manage because mostly the tenants are responsible for the management and damage control.
Moreover, the property increases the value over time so rapidly and the flats remain busy with the tenants round the year.
Do Apartments Appreciate in Value?
The apartments or flats appreciate their value over time. On the one hand, flats give a good amount in the shape of profit return on investment. on the other hand, the rents go up due to high demand. In real estate, the rule of demand and supply is seen very clearly.
That is why we see that in remote areas the prices of the land tend to remain low. Whereas on the other hand, the prices in the big cities remain high. In Pakistan’s scenario, we see that the flats which are available in the major cities like Karachi, Lahore and Islamabad, the prices and demands are much higher.
That is why we see that the flats for sale in Lahore are of great value. The people from remote areas shift to the major cities to earn living. It becomes difficult for them to buy or get a house on rent. That is why they prefer to live in flats instead of houses.
Is Owning an Apartment Building Profitable?
An apartment building is profitable in many ways as mentioned above. Investment in flats or apartments is considered to be among the top investments of modern times. The reason is that it gives huge saving in terms of taxes. Comparatively, the flats occupy the minimum land they escape from the major tax imposition.
The flats also allow you to keep more tenants because a flats building is a cluster of apartments that are used by many. These flats can be used individually or you can use them as a family man.
What Is the Lifespan of an Apartment?
To decide the lifespan of an apartment, we need to check the condition of the apartment that how it maintained. If the flats for sale in Lahore are maintained well throughout the life, its life would be higher.
On the other hand, if it did not maintain well, life will become shorter. On average, according to experts, the lifespan of an apartment remains 50 to 70 years.
To conclude we can say that it is a reality that apartments pay you back a decent amount. You can earn the income on monthly basis in the shape of rents. On the other hand, the flats will increase their value over time.