Lend your money for Profit in Pakistan
The Global economic crisis has engulfed hundreds of countries around it. Pakistan is certainly not too far from the after-effects. As Pakistan continues to recover, the heavy interest rates that were once offered in saving accounts nationwide are now a long lost memory.
Savings accounts once offered lucrative interest rates to many people who would fix deposit their money in the banks. Now with the popularity of savings accounts steadily decreasing, people are looking for various ways through which they can rent/invest their money for steady profits.
It is a dilemma that while many such investment opportunities exist today, there is no regulating body established by the government to keep a check and balance on it. This is why many investors have fallen prey to many fraud schemes and scammer groups, resulting in a net loss of money. But there is still hope.
Today we will be discussing ways through which you can rent money to gain profits:
Give loans to new Business ventures
Pakistan is emerging as an economic market, from freelancing to education, from technology innovation to international cuisines, every market is currently thriving in our setup.
What you can do is lend loan money as an investor in a new upcoming business opportunity. You can invest a certain amount, and earn profit by charging a fixed annual interest rate until the loan is repaid.
First things first, keep your eyes out for an innovative sustainable business venture. Having business connections and a strong social media presence can give you the upper hand.
Once you find your prospective borrower, and you have negotiated the amount of money you will be dealing with, sign a legal contract. This serves as legal documentation and proof of the transaction. A legal contract also provides security to the lender.
Fix an annual interest rate (let us say 10%) and negotiate the amount and the time of payments each month. This will serve as your profit margin.
And there you go! Sit back and enjoy your profits. If fate is kind enough, then you can perhaps invest even more in expanding the business venture once it becomes successful.
Rental Income
Another hot favorite investment idea compatible with the Pakistani market is investing in a property, and giving it ahead to business ventures, schools, and families to earn rental income.
As far as buying property goes, it is generally a much bigger investment with higher capital required. Most people in Pakistan have the upper hand if they buy a property as a group of investors, or better yet, inherit a property legally.
Rental income serves to be a safe bet and ensures lucrative and safe profits without markets risks.
Generally speaking, commercial rental income is almost 50% higher than residential or small scale rental property.
Like loan lending, it is advisable to sign a legal contract with your renter party, agreeing on advance payments and monthly dues and your rights and responsibilities towards the property as a Landlord.
