Zameen friends a.O.A.
I have a budget of around 5 million. I want to invest for having a second source of income. Initially i was of the view that i should purcahse a 10 m plot in bahria phase 8 and construct house after 2-3 yrs, but now i am thinking on other line that i should buy a 5m plot and construct immediately for renting out. My questions are,
A. How is this idea
B. What will be construction cost of 3 beds with attach bath rooms, d/d kitchen , servant quarter and car. Can i spare enough space for parking of sedaan car.
Your guidence will help me a lot.
Bro, its much batter if you buy a ready made flat or apartment in F-11/2 and rent out now and get steady income instead of buying land, then constructing which will also took 1 to 2 years.
I go with kami2k.consturction is big hassle.can we get ready apartment in f-11/2 in 50 lakhs.? Pls let us know thanx , also what will be rent value?
Thx for advice Kami, but i am a Govt servant and my consideration for opting the option of home was just because of this that you will be feeling secure being the owner of house. Where as in flat, normally it is said that you are not in possession of land nor roof in case of any unfortunate incident like earthquake etc.
Moreover i have just checked rate of flates on Zameen.com, they are out of my reach.
Any more views of my other friends please.
@ sohail abbas it is true building a new house is hectic if this is your first time and may incur more cost on construction than would be for a builder or someone who has been in this construction business. You can buy an old livable house (at or close to plot price) if you want to rent it out because the rentals are not enough and specifically building a house to rent it out wont be reasonable. I think an average double unit construction on a 5 marla plot would cost you around 4 million. The rent you can get from such a construction per month depends upon location but say you may expect something like 25000 total a month approx. So for 3 years you will get 9 million in total rental income. Deduct some 2-3 lacs approx for maintenance and property tax bills etc. So your income may come close to 6-7 lacs.
building depreciates with time and if land price does not increase for some reason your building is definitely going to fall in value with time also mainly due to if there are too many options around and construction going on as people will prefer new buildings over old if the price is almost the same.
if you buy a old house on plot price or close to it you can earn rentals for 3 years and later renovate it a little bit and sell at a marginal profit as well so you will most likely be in a win situation