When is a Good Time to Invest in Land?

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Tomar a decisão de invest in real estate requires that several factors be considered beforehand, such as the socioeconomic situation of the market in which you plan to invest.

It is true that there are periods in which the retorno sobre os investimentos in some items may not maintain stability, but this financial behavior is not usually permanent.

É importante to diversify the sources of investment in various types of assets, to maintain a balance in our income at all times of the year.

As we mentioned in other content on our blog, investing in real estate, such as Taj Residência, is one of the safest investments you can make, even in times of crisis.

In this article, we will tell you in more detail what is the best time to invest and why you should do it in the real estate sector.

How to Choose the Best Time to Invest

Trying to predict the movement of the markets can be difficult, especially in the short term, which is why an investment strategy that fits your financial objectives and protects your money is required.

There is no exact formula; it changes depending on the country, time of year, and sector in which you want to invest, among other variables.

To choose the best time, you must carry out a series of steps, which will help you determine if it is optimal to invest or wait for conditions to improve or, in any case, choose another option that provides greater returns and security.

1. Determine the Amount to Invest

It might seem logical, but in many cases, the target market or financial product is first thought before a budget that includes all the income and expenses that have to be made.

On many occasions, the money comes from extra bonuses, for example, the Christmas bonus, an inheritance, or a certain amount that was destined as savings for retirement.

Determining the capital that will be allocated to the investment will give you a guideline on what type of investment to make because the same amount is not required to acquire cetes or investment funds as it is to purchase land or commercial premises.

2. Thoroughly Research the Status of the Current Financial Market

What may provide good returns today may not provide them tomorrow, as stock values ​​are constantly changing.

É essencial to consider the economic environment, as well as the historical behavior of the assets in which you are interested, always seeking to diversify the investment portfolio.

Some countries suffer financial crises in certain sectors as well as companies, so it is necessary to carry out an exhaustive investigation of the company or the market in which you want to invest.

If this is stable for a considerable period of time, the percentage of profits is in accordance with the level of risk and there is sufficient capital, the opportunity to invest should not be missed.

3. Choose the Financial Product or Activity in which to Invest

Taking into account the budget and the financial stability of the market where you want to invest, all that remains is to define the assets. For this, you must take into account the investment risk factors, as well as your age.

Among the main types of investment are:

  • Investimentos de renda fixa
  • Variable income investments
  • Investimento em imóveis
  • Investment in stock market
  • Investment in currencies
  • Investment in raw materials

Following the recommendations of the experts, the younger the person is, the greater part of the capital can be invested in variable income assets. On the contrary, as one gets older, it is recommended to allocate a higher percentage to fixed-income assets. Using the Regra do 120, performing the calculation will be simple.

Por que investir em imóveis?

The parable of the lean cows and the fat cows —used to designate times of scarcity and prosperity, respectively— suggests that there are times with better incomes than others and that to invest in the real estate market in particular, you have to wait until you have a large capital that allows a purchase.

This is true in part since investing when we have enough capital not to compromise our income is ideal but not decisive.

There are options that allow you to acquire goods through financing, real estate crowdfunding or payment plans to investir com segurança even without having a large capital.

If you opt for it, it is important to consult certified specialists in the real estate field to find the place you need for the project you want, as is the case with SkyMarketing , a leading company in real estate investments in the main cities of Pakistan.

One of the benefits of investing in real estate is that it protects your capital from inflation, in addition to building equity for the future and generating a considerable return on investment.

Investments according to the Time of Year

The ideal time to invest in real estate is when we want to diversify our assets into assets that generate safe returns, as they are medium-risk investments with a high-profit margin, especially if it is acquired in an area of ​​high capital gain and in pre-sale.

However, there are better times than others during the year to enter the real estate market, which we will talk about next.

Beginning of the Year and Spring

The months of January and February are usually full of purposes and desires to venture into new projects.

Real estate companies at this time register a drop in their purchases, so it is a good time to take advantage of offers, in addition to having less competition to acquire a certain piece of land.

Verão

Related to vacations and rest, this time of year presents —above all— an offer of residences to spend the summer or vacations, as well as land in quiet cities or suitable for retirement.

If you are looking for a piece of land in a residential area to be able to vacation, it is a good time to check available options. Especially if you intend to acquire a property that allows you to have a place to vacation and with which you can obtain an income for the rest of the year through rent.

É importante considerar a potencial de crescimento that these lands have according to their location, sometimes advertising is focused on those near the sea or quiet places, but there are also commercial destination options that on these dates —as it is not the spotlight—they have deals you can take advantage of.

Cair

In 2015, the BBC World Service published an article titled Why do major economic crises occur at the same time of year?   —which is still in force— in which it is explained that September is the month in which the financial markets exhibit downward behavior.

The so-called “September effect” is responsible for a sense of urgency to accumulate or recover assets. This means an advantage for those looking for land at a good price since many owners want to sell for cash this season.

É também um ideal period to start looking for purchase options once the bonus and the holiday season have arrived.

Inverno

The extra income received at the end of the year is an opportunity to invest. The advice of finance experts is that the Christmas bonus is used to save or acquire assets that become money later.

In the real estate market, the end of the year months is not the most commercially active because it is usually spent on gifts and festivities.

Esta é uma opportunity for those looking for offers and promotions since it is easier to find land with interest-free monthly financing plans and lower down payments.

How do Crises Affect?

Naturally and given the economic circumstances that the world is going through caused by the COVID-19 (Coronavirus) pandemic, you will wonder if it is safe to invest in times of crisis or wait for a better time to do so.

To answer this question, let us take 2020 as a reference, the year that was affected by the pandemic and paralyzed the world economy. Despite the fact that many sectors were severely affected, there were some that, although they did not grow, were able to maintain their stable levels.

Um deles é the real estate sector, which has remained afloat in Pakistan, especially in regions such as the southeast, which has maintained constant growth in recent years.

An important factor that was beneficial for bens imóveis in the country is that it was considered the first opening in economic reactivation after the first wave of the pandemic.

Many businessmen and entrepreneurs saw in the crisis an opportunity to acquire land and properties at a lower cost, which would allow them to obtain profits and considerable profitability.

There are many financial products in which to invest and that are safe even during crises, however discouraging the outlook may seem, sometimes waiting for better times is not the best option.

Types of Investment according to the Investor Profile

In the case of being the head of the family, having one or more properties provides the certainty of having a patrimony, where the family can rest without the worry of having to pay monthly rent; In addition to a possible source of extra income if it is a commercial premise or it is intended to be leased.

For entrepreneurs, investing in real estate provides the opportunity to build a network of properties that make up the company’s assets and that, in the future, can serve as collateral for the business.

In addition, it also represents the opportunity to expand the business in said properties and continue to increase its capital and earning capacity.

For retired investors seeking diversification of accumulated capital, a property is considered a highly profitable financial guarantee due to the various possibilities it has in the market.

In the opinion of real estate analysts, entrepreneurs and developers gathered in Pakistan during 2019 at the First Forbes Real Estate Forum, the opportunities that exist in the area of ​​housing and infrastructure in Pakistan are enormous.

Currently, despite some factors that slowed it down during 2020, the real estate market in Pakistan remains stable in buyer demand.

Finally, no matter what time of year you decide to purchase a piece of land —as we have mentioned— the elements that will really determine the success of a real estate investment have to do with the added value and the possibilities of use that give to the property, the factors related to the location and the commercial or housing possibilities.

Real Estate always the Best Option

Now that you know the best times to invest in real estate, all you have to do is find the right place to do it and the right company.

Pakistan is a good starting point to invest in an exponentially growing market. Blue World City offers options that fit what many new investors are looking for.

At Sky Marketing, we are professionals in the real estate industry with extensive architectural and legal experience. We focus on commercial investment lots projects with high profitability and strategic locations.

Se você quiser saber mais sobre o seu investment options in Pakistan, contact us, this is the first step to invest in your future.