Why should office workers start investing in real estate now?

Real estate investment is the key investment to save your money.

The established theory is that salaried workers are stable due to seniority and a fixed monthly salary. However, due to various changes in social conditions, it is no longer possible to say that salaried workers have a stable form of employment.

In such a case, if you invest in real estate, you can create a living foundation that you can feel secure about now and in the future. This time, we will introduce the reasons why salaried workers should start investing in real estate now and the flow of management.

Five reasons why office workers should start investing in real estate

The situation surrounding office workers is changing rapidly, and it has become a society that cannot be said to be absolutely stable in the future. If something happens, it is expected that there will be a difference between those who did nothing and those who took some action.

Investing in real estate is one of the best things to do right now when thinking about the future. But then why invest in real estate? Here are six reasons why real estate investment is recommended for salaried workers.

Stable and easy to get financing

Although the future is more uncertain than in the past, salaried workers are currently relatively stable. Salaried workers are almost guaranteed to receive a fixed salary every month, and many of them have bonuses twice a year, so it is easy for financial institutions to provide loans, so it can be said that it is easy to start real estate investment. I guess.

In loans for real estate investment, the attributes of “annual income”, “place of work”, “years of service” and “occupation” are mainly examined.

Employers are evaluated by Industry. Although it is not made public, it is said that professionals such as civil servants, doctors, tax accountants and lawyers are highly evaluated.

Furthermore, from the perspective of “income stability,” among private companies, listed companies scored the highest, followed by unlisted large companies, unlisted SMEs, and self-employed. The longer the number of years of service. The higher the evaluation, and the more times the employee changes jobs, the lower the evaluation.

You can afford it without having to cut back on your living expenses

Salary workers have a fixed monthly salary, and one of the reasons why you should start investing is that you have enough money.

If you have a reliable monthly income, you can manage your living expenses and savings in a planned manner, making it easier to create financial leeway. This can be said to be the biggest merit of salaried workers.

Conversely, this is not the case for self-employed or freelancers. Monthly income is not constant, and it can happen that some times it is more and other times less. It is possible that the income will disappear suddenly, so it tends to be an environment where it is difficult to create financial leeway.

However, this is only based on real estate investment where income can be obtained. Real estate investment has a large aspect of asset formation, so let’s first clarify what the investment is for.

Save on income tax and resident tax by real estate investment

Investing in real estate also has the advantage of reducing your income tax and resident tax compared to just being an office worker. When an office worker invests in real estate, a tax return is required. In this case, the salary as a salaryman and the taxable income obtained from real estate investment are added together, which is called “profit and loss totalization”.

You can reduce your taxes while building assets for the future with a low monthly amount, resulting in various tax savings.

no hassle
Investments other than real estate investments include stocks and FX. With these investments, you need to be constantly on the move to generate returns, including checking daily trends frequently.

If you are a salaried worker, it would be difficult to check stock and FX trends in detail during the day. If you check frequently, your main business will be neglected and you will have no money.

On the other hand, if you invest in real estate, you can outsource many of the tasks necessary for real estate management. Such as managing buildings and tenants, to a management company. Since you don’t need the hassle of detailed checks and management. You can earn income effortlessly while concentrating on your main business.

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Replace life insurance and private annuities by real estate investment

When investing in real estate, it is common to obtain loans from financial institutions. When receiving a loan, it is necessary to enroll in a group credit life insurance. But this can be used instead of life insurance.

Group credit life insurance pays off the remainder of the loan in the event of an unforeseen event such as death or severe disability. While the loan is being repaid. The surviving family members will be able to leave debt-free real estate and earn income from it.

In addition, you can expect it as an alternative to pension. Due to the declining birthrate and aging population. There is a decrease in the amount of benefits received. A shortage of financial resources, and an increase in the age at which pensions are received. If you start investing in real estate early, you can secure long-term income and prepare assets.

Resistant to changes in economic conditions

Real estate is not affected much by changes in the economic situation, so it can be managed stably. It is especially strong in inflationary situations.

When inflation occurs, the value of cash decreases in proportion to the price increase. Conversely, in the case of real estate, which is a real asset, the value does not fall, but rather rises.

In addition, rents tend to rise as prices rise. Therefore, during inflation, it is more profitable to invest in real estate than to keep cash on hand.
Points to note when office workers invest in real estate. There are many benefits for salaried workers to invest in real estate. However, just investing without thinking about anything may not work well, so you need to be careful. Before starting real estate investment, it is important not only to deepen your knowledge. But also to turn your attention not only to the benefits but also to the risks.

Qurtaba city Rawalpindi

Qurtaba city Rawalpindi is the best place to invest your savings. It is the most profitable project in not only twin cities but also all over the Pakistan.