Bahria town will be biggest fraud in the history of asia.Malik riaz was responsible for developement of DHA valley.it has been 10 years and there are no chances of possestion even 10 years ahead.Riaz has appointed all retired generals with salaries of one million plus benefits.
My question in dha valley which has more than 50000 plots in total what will happen to money of those middle class?
I have already written a very detailed post about Malik Riaz and his shenanigans at Bahria Town. I have also tweeted about it a lot. However, I keep getting inquiries from friends and colleagues asking me if it is a good investment.
How do you analyze if anything is a good investment? When you ask what will you get in return for what you are paying for. So for Bahria Town, we will be paying Rs.15,000 (5,000 registration fees plus 10,000 credit towards first installment). What will you be getting in return? No one knows. The location of the project, size of the project, sizes of plots, price of the plot, number of installments etc is all guess work. Rather guess work is limited to location of the project. With respect to the rest of the information, no one has a fking clue.
So it is pretty hard to tell if it will be a good investment.
But what do we know about it. We know that we will be paying Rs. 15,000 per application. People are submitting 2 to 3 applications each and investing from all over the world. So I estimate that there will be 100,000 applications which I think is pretty conservative considering the hype surrounding it.
I did some back of the envelope calculation.
At 15,000 per application, that is Rs.1.5 Billion for 100,000 applications.
Lets assume that processing and booking and balloting and allotment etc takes a while. Can take up to 6 months but conservatively assume it will take 3 months
Assuming he has negotiated a rate of 8% interest, Rs. 1.5 Billion in the bank will earn him Rs.30M in 3 months
Add to it, Rs.5000 per application that he will not be returning and that is another Rs.500M
So that makes a total of Rs.530M
Deducting around 50-75M that he spent on advertisement, and that leaves him with Rs.455M
Not a lot of money for him but still a handsome amount as it comes with no strings attached.
If we add money he will be getting from other two projects and probably he might be able to get upto Rs.600M of money absolutely free.
I don’t know about the investors but for Malik Riaz and Bahria Town entity, this is pretty good investment. Against an advertisement campaign of Rs. 75M (ok lets make it Rs.100M by including future expenses), he will be getting Rs.600M. That is a 600% return in 6 months.
Only illegal Ponzi or gambling schemes guarantee such returns. And yet Malik Riaz gets it all legally.
Assalam o Alaikum to all,
i am agreed with Mr Jawad very good comments really.
Mr. Jawad this is very small amount as compares to he earned from Bahria phase 9 in 2005. He sell 40,000 files . People deposited Rs. 300,000 against each file and he buy back file some believe many files some believe up to 50% in Rs. 150,000
during recession of 2006 and 07. For remaining he asked to deposit extra amount to convert files in to phase 8. How much he earned unbelievable. Same story will re play in Karachi. This is a start of game
We humans are very greedy. Be it MR or me, if ppl have invested, thn they have to wait for some years to start getting return of their plots or files. Now when i tell my friends that i bought a plot 7 years back for 1 million and now it is approx 5 million. They will ONLY listen to the 4 million profit not to the wait of 7 years. You dont become millionaire in a day or months. PATIENCE is the key!!!
Regards
Same is the case with multi, my suggestion is to keep away from all such ponzi schemes offering files, and let these fraudsters deliver something real or shut their shops…and stop making us fool.
yes it seems to be a one man show, but Bahria Town has become an organization now. with its branches expanding in different cities.
Million$
Multi is not that bad when comes to returning value for money. Their projects are solid, delivered almost on time and of good quality. For genuine investors (as opposed to speculators) multi products never let down those who invest for profit or living.
Yes there is one vibrant person behind multi but legally it is a cooperative society.
This is just the game of authorized Bahria dealers to up and down the market for earning more profit. And it’s generally seen that market goes down at the time of installments.
And also it seems to b a one man show. I.e that one one man is Malik Riaz.