If you want to save money and gain financial stability in the future, start investing today.
Investment is all about buying things that are not supposed to be consumed today but will generate profits in the future. If you are someone who wants to gain financial independence in the future, you should invest in assets. It requires patience and time but the gains will be worth the wait (if you invest strategically of course).
There are many types of investment opportunities in Pakistan but two types of investments that are widely popular and easy to start are real estate and stocks.
People are always in a fix whether to choose real estate or stocks. Some prefer real estate because of the high degree of control associated with property whereas some prefer stocks because of low capital requirements.
Today, we are going to discuss the nature, pros, and cons of each type of investment. The article will act as a guide for people who are confused about which investment to choose.
Pakistanis spend about $5.2 Billion on construction in a year that is equal to 2% of Pakistan’s GDP.
Looking to invest in real estate? Check out Graana.com’s handpicked real estate megaprojects you can be part of.
“Among non-investors, 53% say they don’t have the money to invest and 21% say they don’t trust stockbrokers or financial advisors.” – Lexington Law.
This statement is not always true. For investments, you do not need millions. You can start investment from a mere PKR 5,000 only.
Another excellent way to secure your money is through stocks. Stock trading has a great scope in the investment market. There are 60 major stock exchanges in the world with a total value of $69 trillion (in 2016). When you buy a stock, you indirectly own a share in that specific company or business. Whenever the company will make a profit, you will be rewarded in the form of dividends.
Stocks are liquid assets which means that you can convert them into cash within a short duration of time. If you are looking for an investment that yields profits in a short duration of time, stocks are perfect for you.
Unlike real estate, you do not have to pay heavy taxes on stocks. Also, you do not have to pay maintenance costs and insurance fees.
To deal with stocks, you need to have good financial knowledge and analytical skills. It is extremely important to have knowledge about stocks, how the market operates, how to calculate ROI and vice versa.
Most of the times you have to rely on external sources such as financial advisors and brokers to deal with stocks. These people charge you hefty amounts for their consultation services.
When you are dealing with stocks, the degree of control becomes lower. If the company in which you invested is going out of business, you cannot do much about it. In short, you will have to sell your stocks to mitigate risk.
Stock prices fluctuate drastically, leading to uncertainty. Unlike real estate, it is nearly impossible to predict the stock market perfectly.
With all this important information, where would you invest?
None of the information published in this article should be construed as investment advice. We strongly advise our readers to always do their due diligence before investing in any project. It is the reader’s responsibility to know the laws regarding investments in their region.