Dear experts,aoa
I have a budget of 10 million ( one crore ) to buy a property for regular rental income.
I am overseas so no idea about real situation kindly advise f 11 flat vs shop in civic center which one is good for rental income and future appreciation.
Jazak allah
Dear Brother,
F-11 Flat: ROI not outstanding and flat is not the thing you can sell off in days. People prefer plots rather than flats if the have 10 million in hand budget.
Shops Civic Center: Non CDA investment so bit risky in terms of property value, good ROI, prefer Ground Floor shop with one to two year extendable contract.
Suggestion: go for shop only if interested in rental income. Prefer CDA investment explore options of shop in F-11, F-10, I Sectors. Determine the cost of shop in terms of rental income of 0.6 percent at least. For example if shop demand is 8000000 and rental income is 48000 per month go for it. (Only CDA). For Bahria Civic Center the factor should be 0.8 to 0.85 percent.
Khalid, I have tried to find the shop an F11 and Civic center and i did not find any ground floor shop for ROI with 0.65 maximum they are offering is 0.5 %. If you find any options then let me know.
0.5 is fair value, go for it
0.5 persons is the rule of thumb dealers have made. Anything over 0.5 should be better and your hard work can find such an option. In F-11 0.5 percent is quite good as well but non CDA property should have greater than 0.5 percent
Khalid tried for the last 5 months didn’t find any more then 0.5 %
...
As explained already by other forumers one potential downside of flats is its not easy to selloff quick. Also property appreciation is generaly slower. Past year did witness slightly better growth in apartment prices in F11, and even G11 too. However as per OP requirement for regular rental income a flat could be a decent option provided you find one in a decent reputable building. A flat in F11 costing under 1cr gets you a minimum rental of 40k pm unfurnished and potentialy more for furnished. Tennants with stable incomes not difficult to find for apartments in F11 as generaly a lot of young professionals that come to Isb for work from other cities whether young doctors or working in finance prefer to live in F sectors due to its comparatively better social scene and proximity to other places of interest in main Isb.
I dont have much info about bahria town rwp.
Civic center is quite good in rental income same goes to F-11 Markaz commercials. 0.5 rental is common at both places.
Our most recent personal experience:
We are builder of a 6 story plaza in Bahria phase-8, overseas sector. Just finished with rafting and ground floor full hall has been sold already at 2 crores.
1st floor is priced at 1.25 crores with minimum rent ~55-60 lacs, as of present market demand.
I myself bought the lower ground full hall & 0.5 ratio is working, as a neighborhood business man has already approached us to take it on rent, post completion. We are giving wash rooms also in lower ground which is not very common in basements as it cost like fortune.
The raft part alone is 3 feet thick (all over full 5 Marla plot floor) with thick steel used in heavy and tall bridges!
Besides numerous concrete columns all the way down even our soil testing was solid, few feet at corner was soft.
We have spent 35 lacs so far up to rafting stage only.
Friends can have some idea of rents in BT overseas sector. Other areas may be quite different as phase-8 is city inside the city.
I have personal same experience with F-11 & BT civic center commercials. Both are lucrative but in civic center in peak summer, water supply is a concern now a days, though!
An apology to several friends at zameen:
Friends, Ibne Batoota nain bhi itna safar naheen kia hoga jitna main aaj kal kar raha houn.
One foot in Qatar, one in Canada. Next week only 5 days trip to Pak to oversee business.
Sorry for not replying to friends as a reply needs to go legitimate places & no time to sit in Pak.