I have 5 million in cash. I have confused in two options. One is to buy my own home and start living in it as i'm currently living on rent. Other option is to invest this 5 million in real state for next 5 years. What is the best option for me in the long run? My main concern is to have savings at the end of next 10 years.
Any expert please help.
Farhan sb
In real estate, you can have in your budget:
A one Kanal plot in bahria Pindi phase-8 sector P n look for the one which has extra land. Forget selling it at least for 5 years.
Explore DHA-5, increase little money and get a 8 marla plot, forget for 3 years.
Bahria sector M or zone 5 extension near golf courses a 30 by 40 plot and project profit for at least 3 years.
For both rental and appreciation, explore CDA Markaz F-11 and buy on shop in basement at 50 lacs and rent min 25K PM. Shop price will keep increasing as time progresses.
In bahria phase-8, in safari valley, buy a small muhalla commercial at 50-55 lacs built unit with plot ownership, rent now is 20-22K as of now n 10% annual increase.
New townships such as BWC or TC or MC .....check with experts here on zameen.
Last but not the least, explore CDA I-series sectors, you will never lose In Shaa Allah.
Having your own house is an investment as well. You can always sell that too, its price will keep increasing and you can even save the rent you are paying (and will be paying in the future), if you have the right discipline. And you will have your own home. As long as you can find a plot and build a home on it to your liking, I will recommend having your own home. Then you can go about saving for further investments or simply go saving mode for retirement or children.
I'm also leaning towards building own home as it'll give me peace of mind and I can concentrate on savings later.
I've made small calculations and figured I'll pay around 4 million in next 10 years in rent. Now I can get same return from investing 5 million but then again it is not worth the pain living on rent and not building own home which'll also appreciate with time.
Brother, without any doubt go for your own house, it is also an investment on you and your family. Circumstances can change anytime in life and we should go for the family security first.
Invest somewhere is new development areas on installments on the rent you save from paying the rentals. Consider Capital Smart City, Lahore Smart City for future. In about 4 years you will be having another plot from your rental savings.
For construction purposes explore BT Phase 8, I-16 only. It will appreciate with time. Other place may have litigation issues, NoC problems and will not give you peace of mind.
May Allah give you the right direction and help you.
Regards,
Khalid
@ AQ sb. Please guide if one can get 1 kanal in Sector P BT with extra land in 5 million budget?
Khalid sb
Yes, it is possible in the subject budget.
Sir, I can safely tell that Mr Shahid Malik, who is as big as Malik Riaz in phass-8 prospective, is proving instrumental to connect to govt baboos to get sure access for phase-8 to RRR. DHA directorate in GHQ shall appreciate equally this connection.
If Imran govt stays, ML1, Laee development and RRR is written in stone......not for us...for PTI votes in next elections just like drama baz spent the 70% of Punjab budget exclusively on Lahore.
I think this is time to invest in P block and all the good working societies along RRR, all the way to Kohat road where Islamabad airport will connect to Kohat road.
RRR is now considered at all higher benches that it is a must project for the area traffic and security. During school times, hours are being wasted and everyone is affected from traffic rush.
Rawalpindi Ring Road project PC-1 for land acquisition approved RRR project PC-1 for land acquisition approved - Zameen News
I work at 6th Road, Rawalpindi so I have to consider my daily commute before deciding the area. BT8 is far far away.
Farhan, building a house for living has an entirely different purpose than investing in real estate. While the first has emotional value attached, the other has purely monetary objective.
If you want to combine the two, as Muhammad Khan has suggested, then keep in mind that only the plot value will appreciate whereas the constructed house value will depreciate substantially with use.
Rawalpindi Ring Road (RRR) is a far cry, do not expect it to start by this utterly incompetent (and now proven corrupt) selected regime. So do not make any decision that depends on RRR. (if in doubt look at Peshawar BRT).
Lol, Peshawar BRT to open up tomorrow. :-)
I don't agree with you on house vlaue being depreciated. House value would go up (both plot and construction combined). If I purchase a house in 8 million today then after 10 years it would double. Major part would obviously be for the plot but construction would atleast have the same value as it was at the time of construction, thanks to our inflation rates.
LOL, and this will be third time these buffoons will open up the same pathetic BRT.
You have to be careful in calculating price appreciation of a used constructed building.
I agree on both points. 
- Plot Price appreciates (general hypothesis).
- Structure depreciates and it's value fluctuates depending on construction cost, PKR value etc.
In principle, every structure at min recovers it's cost unless damaged and if the plot underneath appreciates so does the overall property.
Re: Commute to/from 6th road:
Depends on individual's preferences in 5 M budget, parts of Sadiq Abad, Airport housing etc. suits best. For me, under current Socio-Political circumstances, having ones own roof first of all should be a priority above all investments!
Great analysis Imtiaz sb.
I'm visiting different areas on daily basis so, hopefully, I'll get something soon. I'm not desperate but really want to get rid of monthly rent. I'm living on rent for the last 10 years btw. :-(
I can feel for the that ups and downs of a decade+ tenancy times ...
Wish you th best & for sure the sense of security and accomplishment of having your own roof is much more valuable than any gains/loss/whatever associated factor. Under your own roof, even a newly bought carpet has a value and feel attached to it!
Unfortunate, and for weird reasons, in our country despite being Geniune demands and house as immovable asset is still far away from half decent mortgaging facilities. It's far better for banks and end-buyers than auto-financing. Wish every tenant who pays for 10-15+ years to their landlords actually pay to government or bank and in that time have the roof owned for their family!
Best wishes and good luck to achieve that.
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Brothers, appreciating your sincere efforts in guiding us..
Nowadays as I search all I-12/1 or 12/2 are around 70~84 lac which is quite out of budget, so do u suggest to look for I-15/4 (7marla) or I-16/2 (7marla) as alternate with same expected appreciation by 2-3 years ?
More appreciation expected (15) though with risk of no possession/no development and we are talking about CDA!
Less appreciation (16) but with possession and ready to construct.
Choice is simply between:
15: Expected more return with more risk VS
16: Less returns with full secure investment