Hello
I am currently renting a place paying rs. 30000 pm. I am thinking of using my savings to buy a 5 marla house in johar town for residence as well as an investment. My main objective is investment i.E. To grow my capital being only of age 30.
Can anyone please advise what would be the best option for me from the two listed below:
1. I buy a 5 marla house to save rent
2. I keep renting and use my savings to buy a plot instead (in dha phase 8 or 9)
This has been puzzling me for quite sometime and i would really appreciate feedback of the seniors here. My intended time horizon for the investment is 2 to 3 years max after which i intend to go abroad.
Would be very grateful for guidance.
If you have confirm plans to go abroad after 2-3 years, then you should buy a house and live in it before you go abroad and when you leave you can rent it out.
If their is no such bonding, then you can buy a plot and re sell it later for some profit and repeat the process.
Nasir thank you for your reply.
What option would give me the greatest ROI as with a house, there is also depreciation. I would need the money when I go abroad so I would have to sell the house anyway.
So would buying a house or a plot be more profitable?
Cheers
Property prices are booming by each passing year
E.g. When i came to Islamabad 5marla house could have cost me around 5million approx ... But i preferred to live in 10k home on rent ...
6years passed ... I am paying 30k rent now ... The same house is now for more than 15million worth ... What did i saved ? Just multiply it and then used that money that u saved with additional money you need to purchase new house. Its still massive ...So if you can afford than buy house than giving rent
Okay simple question.
If I buy a house of say 10 million, I save rent but the house will also depreciate.
On the other hand, if I buy a plot instead, there is no depreciation but there is not rent saving either.
So mathematically, if Depreciation > Rent , it is better to buy a plot.
Am I thinking on the correct lines?
Any feedback would be highly appreciated.
Depreciation is nothing to think about it
If you buy a new house and maintain it reasonably, there should be no concern of depreciation for 5-6 years at all, as it will be easily offset by rising construction costs.
Thanks Kashif. Your reply was very helpful.
Can anybody also advise whether it would be a better investment to buy a 10 marla house in Bahria Town or a 5 marla house in Johar town?
My investment time horizon is 2 to 3 years.