Kaleem's Blog

Real estate is one of the fundamental needs of any business. Mainly, it has three dimensions: commercial, residential, agricultural. It is a scarce resource as you cannot manufacture more of it. It will continue to get scarcer with the increase in population. This is the main reason why it is so attractive from an investment point of view. The second reason is the development and up-gradation of land from a lower to a higher status e.g. from rural or agricultural to urban residential or commercial.

In this article, I am going to discuss a plan of how you can finance the construction cost of a medium-size house, provided you already own the land on which you are going to construct it. This is a long-term undertaking and its success hinges on how skillfully you can leverage the power of equities (stocks or shares). Let’s, first of all, list down the pre-requisites, some basic assumptions, and then we can go on to the execution part.

In personal financial planning, one of the most important decisions to make is whether to rent or own a house. If you decide to own a house, the second question is when or at what stage of your life or financial journey? Since constructing or buying a house, in a majority of cases, is going to be the biggest expense to be incurred, it merits a lot of deliberation and forethought. This single decision holds the potential to substantially alter the course of your financial life, for better or for worse.