Are you aware that you can boost your real estate investment in Pakistan and earn over 24 crores over 12 years, investing just 50 lacs each year?
Do you wish to be financially independent in 10 years?
In the last 50 years, a lot of people from all walks of life have followed the rules and been capable of transforming from a basic income into billionaires.
This isn’t just any magic performed by David Blaine but the universally acknowledged magic of compounding. And today I’ll explore an extremely efficient strategy that has worked for decades to assist you to increase your real estate investments by 10x faster.
An interesting market statistic 50 per cent of the total wealth is held by just 10 % of the investors. The remaining 90% of investors hold a 50 per cent share of the same sector.
The billionaires are consistent with experienced advisors and consultants who help them to continuously maximize the returns on their portfolios. Additionally, they invest profits earned while adding more money every year. The second category invests without advisors/reinvestment and follows the buy-and-hold strategy with their limited research.
In the present, when it comes down to the numbers and the fundamental math of investing The wealth growth formula has been in use for centuries. Take a look at the graphic below.
Initial Investment = 1 Crore
Each year, investment equals 50 lacs
Total investment over 12 years is 6.5 Crores
Net value in 12 years is between 24 and 30 million dollars with 2Mplus rental income
You might be wondering how this occurs.
Let’s look at the magic that is happening below:
We’ll start with year 1, in which you’ll make your initial investment, and then pay the instalments.
Year 1 to Year 3
We began with a Crore investment. We bought an apartment on the stage before the launch. The Down payment is 4.8 million, and the total amount of instalments during the year is 2.2 million. The balance of one crore would be 3 million. In the second year, we will invest 5 million out of our pockets, and we invest 3 million that we carried over from the first. We now have a budget of 8 million that we can invest. In the second year, we made instalments payments and didn’t purchase anything other than that.
We transferred 5.6 million from year 2. We have also added 5 million. With 10.6 million, we purchased another apartment. The down amount on the unit we purchased was five million. the total amount of the instalments for both units was 5.6 million.
The final result in the third year would be an increase in assets, which is another unit.
Year 4 to Year 6
After the 4th year, we’d own the unit we purchased to start our investment. It would be put on lease for a short period and make 1.8 million. The amount for the instalment for the other unit will total 2.4 million. In the year ahead, we won’t be making any purchases. When we began the 5 5 years we carried over the balance was 4.4 million. We also invested 5 million. This year, we’ll be paying instalments of 5.6 million. We have a rental income of 1.8 million in the initial unit we’d have purchased in year 1. By the end of the year, we’re remaining in the position of 5.6 million.
In the sixth year, we’d buy the 3 3rd apartment. The current value of the apartment of 19million. The down payment will be 5.7 million. Our monthly instalments amount to 4.1 million this year. The rental income has gone up by 1.8 million and now 3.6 because we now have two properties earning profits for us.
Year 7 to Year 9
In the seventh year, we made investments of five million and made 4.4 million. This year, we plan to purchase a new apartment that has a value of twenty-one million. We will make a 5.7 million cash down for our fourth unit. The total amount for the instalment will be 7.78 million this year. Rental income saw an increase of 30%, to 4.68 million. Seven years later, we witness how compounding affects us, and we can see the value of our assets increase more quickly.
In the 8th Year, we carried forward the remaining 4.68 million and funded 5 million which totalled 9.46 million. This year, we have paid instalments of multiple units that total 9.46 million. When we close the year there was no balance.
In year 9 we have invested an additional 5 million. In total, the instalment payment totals 6.44 million, which is more than the investment amount. Wait for a second! The rent revenue is 7.02 million. The rent is now coming in from 4 apartments. The net balance at the close of the year was 5.58 million.
Year 10 to Year 12
In year 10, we’ll purchase two homes valued at 26 million, which has the potential to increase our portfolio from four units to six units. The down payment is 15.6 million and the monthly value is 7.14 million. Be assured that the rent this year has grown by 30%, which would amount to 12.1 million. This year, we put our rent earnings and 5 million, which was initially put into the fund as we’re increasing our wealth. We now have no balance.
In the year 11, we made investments of 5 million. The instalment is payable to 14.6 million. Our rent received in the year was 12.1 million. The remaining amount after payment of all instalments totals 2.5 million.
In the 12th year of our existence, we invested 5 million and added 2.54 million. This is 7.54 million. The due instalments amount to 14.6 million, and the rentals are 12.1. The net amount is 5 million.
If I continued to use this method I was able to have 6 apartments serviced in 12 years. If I continue to compound over 20-30 years, my total would quickly reach 2 billion. I’ve witnessed this process work in a variety of portfolios for clients throughout the years. One crore Challenge is designed for those who are dedicated to joining us on our journey to build wealth and reach financial goals.
Contact me here to discuss different strategies for investing that will allow you to achieve financial success.
Most Frequently Asked Questions regarding multiplying real estate investments(FAQ)?
One size doesn’t fit every person, and you will have plenty of questions concerning the illustration above. This is an explanatory illustration to show the growth of wealth, and how you can increase your real estate investments by through the magic of compounding over 12 years. But, the amount of money you invest per year could differ. The minimum investment isn’t 5 million for the One Crore Challenge. It can change depending on your appetite for investment.
Q-1 The development of projects tends to be delayed in Pakistan which means that the actual ROI could be less.
The .bove illustration depicts a smooth sailing investment experience that numerous people have experienced. We, as consultants make sure our clients only make investments so that we don’t encounter unusual delays. But, if our plans fail to follow through as we had planned, what could occur? Let’s suppose that the units are delayed by six months or one year.
The rental income we earn instead from the fourth 4th year would be shifted into the 5 5 years. The investment return will not be affected concerning Capital gains as the prices rise in tandem. But, the rental amount would be lower. If this were to occur in multiple purchases, we’d still reach around 80-90% of our goals.
Your net worth will be approximately 20 crores. within 12 years.
Q2 How can you reduce risk and assure maximum return on investment so that I can effectively multiply the value of my real estate investment
As asset managers and consultants we’re constantly keeping track of the situation when an investment is being disproportionately delayed which could adversely impact our profitability, we’ll be able to exit the project and move to the next project.
In addition, I work in specific areas and with developers that we trust. We conduct a thorough study of this project as well as its possibilities before investing, and we take into account the risks.
We make rational choices, that are not based on emotions and can adapt to changes in market conditions.
Q-3 Who will be to handle the rental?
Rentals are among the key elements in the above plan, which is why we’ve created AtLuxus STR (Short period rental management) to make sure we reach the highest potential rental value of an investment property.
The capital gains on properties are also subject to the rental yield that it will earn in the future Therefore, different properties could have different characteristics. Capital growth delays could occur if the decision-making process isn’t done properly.
Certain projects are residential and some are commercial. hotels or serviced apartments. In the present market If we stick with residential apartments, they have different capital gains and rental opportunities as compared to a hotel or serviced apartments.
In certain situations we might opt for a rental guarantee