Assalam-o-alaikum experts!
I am currently residing in riyadh, saudi arabia and have been contemplating for a while now to do some investment in pakistan real estate which has luckily landed me to his forum which looks more than useful for a newbie like me.
Below are the details for my details for the query and will appreciate your guidance.
-my budget for the investment is 20 – 25 lakhs pkr
Would prefer 5 marla plot in a safe society in lahore or islamabad
-buying this more for investment purpose and willing to hold it for 3-5years if the value can appreciate
Thank you in advance.
Br,
Khurram
If u can raise your budget to 27 lakhs you can buy a 5 marla in Bahria phase 8 Rawalpindi sector M or 5 marla plot in Gulberg Residencia . Both will yield good return .
Brother khrm riaz better to keep and save ur money in saudi rials and dont invest in property .its very bad time . Specially devalution of currency is big factor for all of us expats. So better keep ur saving in rials and wait for some good time.good luck.
Dear Khuram
You have options to buy in I-15/16, CBR, Multi gardens, Top city and Bahria phase-8 sector L and M.
If you gather all components of the aforementioned townships, phase-8 seems to be a winner so far.
Among all, CDA I-16 seems to win equally in horse race.
My pick is developed part of phase-8.
** Suggestion: If you are earning in a foreign currency (that is pegged with USD), better to keep the savings in that currency. It may bring better return, come December 2019 with PKR likely to depreciate further.
Suggestion, may not answer your question so here are the Options to answer, precisely.
** Options: Safe in 2.0 million (possession with lump sum, 5 Marla)
BT Phase 8
CBR-2
UpCountry Enclosures
Graceland Housing
** Installments:
May be check
- Capital Smart City Overseas Block (only Overseas Block rest is a bit mess for now).
- Also check Gulberg Residencia AA or some block like that 5 Marla Files, rest there are 5 Marla files but dont go for them.
Beyond 3 million is a different game and more options (I-16, Residencia, Enclave etc.). Rest is all dependent on your holding power and waiting time before any revenue yielding.
Hi,
I would recommend to invest in societies around Sharaqpur Road or SA Garden Kala Shah Kaku. Those comes easily in your budget.
Other inside Lahore I would recommend a 5 Marla plot around 20 in Nigheban Housing Society Lahore.
Lda city Lahore best choice
If I was overseas and had a single $ or riyal on me, I would have kept it outside. It is not a time to throw your hard-earned money in this enormous sink-hole.
Dear Khuram
If you ask, the ones who are discouraging the Pak property investments: Why a plot I bought 2.5 years before in phase-8 sector-E @ 44 lacs, includes all charges, and now hard to get the same location even at 60 lacs, these guys will have " Run time error" in PC language!
Actually a good cutting area plot in the same block has gone up to 65-70 lacs (corner & at height & cutting terrain).
That makes at least 7.2% Halal profit and the way BT is developing it will rise further more.
Pakistan has millions of house shortage and genuine buyers who want to make their homes, are in the market in good number, all the time.
Now the difference is more taxes and more money as capital gain to govt which makes not a big difference and we need to pay our taxes to govt whether we like it or not!
Pak economy seems stabilizing and how long people will keep their money in pillows?
Buy only in well-developed societies and you will never lose, In Shaa Allah.
But one thing is now written on the wall, no doubling of property in weeks!
Pak investment likely to return more as chronic house shortages exists and will exist the coming years.
I think the issue correlating the following two factors have been discussed explicitly almost line N-times.
A. Saving in a Foreign Currency (ideally pegged with USD)
B. Investing in Real Estate of PAK.
Facts: Post June-2018 there is minimal growth of real estate investments and ROI in PAK. Jan-2018 to May-2018 was progressive, infact quite good (stable PKR, GDP>5, lower inflation), however, beyond mid-year the growth is slow and mostly stagnant. Whereas if one compares rise in USD during the same time, it is quite high. All data, facts and ground realities are explicitly self-explanatory.
This by no means discouraging people to invest in Real Estate. However, it does suggests to consider the context before decision.
** Investment in B
Genuine buyers who want to own a house or property of their own (getting rid of rentals etc.), anytime is best time to get your own house/real estate asset.
If holding power is >2 years, things bought now will for sure be beneficial. However, question is would it be more beneficial to invest in A or go for B? no one knows precisely. Context suggest USD may hit 169 mark to PKR come Dec-2019.
Smaller investment (<2 million) are and will trade much better then traditional larger ones.
** Investment as A
Safe, secure and steady growth (almost guaranteed) with full control in your hand.
Holding it at-least Dec 2019 can dictate further, whether to do the same or go to B.
Conclusion
-
If saving in foreign currency, go for 25% to max 40% as real estate investment, rest try to preserve. Cash in hand is way more handy then any other asset, unless asset is flourishing and its worth to put in cash to acquire the asset.
- It is not the taxes (mostly for genuine long term buyers) that hinders the growth. For overseas, its better growth in PKR for their saving. For residents, its the inflation that is making it out of reach.
Go for smaller more liquid investment (low cost projects), they seem to be yielding better ROI compared to big investments.
Whenever invest, keep in mind holding power of 2+ years from now.
Try to construct as soon as possible, if one plans to as construction cost will escalate and will keep doing so.
Shortlist projects that have some city/state level infrastructure planned for construction in proximity. Never fall for 'Just 5 minutes drive from XYZ, see it on Google Maps and Visit is must even if on paper the project sounds a gold mine'
Avoid the temptations of low pricing with projects as apparent scams and without NOCs.
A. Saving in a Foreign Currency (ideally pegged with USD)
B. Investing in Real Estate of PAK.
Facts: Post June-2018 there is minimal growth of real estate investments and ROI in PAK. Jan-2018 to May-2018 was progressive, infact quite good (stable PKR, GDP>5, lower inflation), however, beyond mid-year the growth is slow and mostly stagnant. Whereas if one compares rise in USD during the same time, it is quite high.
** Investment in B
- Genuine buyers who want to own a house or property of their own (getting rid of rentals etc.), anytime is best time.
- If holding power is >2 years, things bought now will for sure be beneficial. However, question is would it be more beneficial to invest in A or go for B? no one knows precisely. Context suggest USD may hit 169 mark to PKR come Dec-2019. End of last fiscal year, i.e., Jun-2019 already saw USD hitting 163 and beyond.
- Smaller investment (less then 2 million) are and will trade much better then traditional larger ones.
** Investment as A
- Safe, secure and steady growth (almost guaranteed) with full control in your hand.
- Holding it at-least Dec 2019 can dictate further, whether to do the same or go to B.
Conclusion
** If saving in foreign currency, go for 25% to max 40% as real estate investment, rest try to preserve.
** It is not the taxes (mostly for genuine long term buyers), its USD rise and PKR fall that hinders the growth.
** Go for smaller more liquid investment (low cost projects), they seem to be yielding better ROI.
** Whenever invest, keep in mind holding power of 2+ years from now.
** Try to construct as soon as possible, if one plans to as construction cost will escalate and will keep doing so.
** Shortlist projects that have some city/state level infrastructure planned for construction in proximity. Never fall for 'Just 5 minutes drive from XYZ' slogans.
** Avoid the temptations of low pricing with projects as apparent scams and without NOCs.
Part 2 (seems like some character length cut the entire post)
- Smaller investment (<2 million) are and will trade much better then traditional larger ones.
** Investment as A
Safe, secure and steady growth (almost guaranteed) with full control in your hand.
Holding it at-least Dec 2019 can dictate further, whether to do the same or go to B.
Conclusion
-
If saving in foreign currency, go for 25% to max 40% as real estate investment, rest try to preserve. Cash in hand is way more handy then any other asset, unless asset is flourishing and its worth to put in cash to acquire the asset.
- It is not the taxes (mostly for genuine long term buyers) that hinders the growth. For overseas, its better growth in PKR for their saving. For residents, its the inflation that is making it out of reach.
Go for smaller more liquid investment (low cost projects), they seem to be yielding better ROI compared to big investments.
Whenever invest, keep in mind holding power of 2+ years from now.
Try to construct as soon as possible, if one plans to as construction cost will escalate and will keep doing so.
Shortlist projects that have some city/state level infrastructure planned for construction in proximity. Never fall for 'Just 5 minutes drive from XYZ, see it on Google Maps and Visit is must even if on paper the project sounds a gold mine'
Avoid the temptations of low pricing with projects as apparent scams and without NOCs.
@abdul qayum if u bought some thing back in 2016 for 44 lacks .literally its still same amount if ur expat. So no joy in this 1.6 million profit. Devalution kills all joy of ur profit rest Allah knows better.
Dear Mohammad
You are right. RS depreciated by 21.9% for the last 2.5 years since I bought the plot. I checked the price of my plot today and it turns out to be a raise of 11.9% per annum.
But think how many people got their earning, starting from the tea boys in dealer office, dealer's family, the transport used during the buyout,......
Whereas if you keep $, your are benefitting and America
I do not know whether or not, keeping money in $, give a benefit to Pakistan's economy. If it does it is OK otherwise let the ball rolling and invest where state gets benefit.
If I had traded this plot several times since then, I might be well above $ deposits.
Sir, slight correction:
USD-PKR on Jan 1, 2017 (approx 2.5+ yrs ago) was 1 to 103 approx. Now it's 1 to 160 approx. 1 USD in 2.5 yrs gained 57 PKR, i.e.; PKR losing 55% approx. to USD.
Sir Jee
I talked of calculation rounded to PER YEAR.
As per your figures it balances around 22.0% (RS).
Mine is 21.9 but I did not get the date-wise figures just talked out of my memory, which does not qualify for being a great one!
We both are at the same figures, Imtiaz sb.
If big tax evaders are successfully put under the tax net, which seems happening, tax base gets broadened, which also seems happening, import/export balance gets improved, seems happening as well, this prediction does not mean anything!
In Iran, a good sitting office chair cost in millions, In Indonesia same, in ………long list……
JDM sb is also convinced on the tax collection improvement by Imran govt.
I dont wanna turn it into another 'Devaluation' thread. Posted the prediction, solely for the fact that people can interpret and decide for themselves as things predicted, whether to preserve in foreign currency or invest that into Pakistani Real Estate. Along the way, Iran is never even least decent of an example for economic model to compare with, even if its inflationary comparison.
No matter how much tax net broadened, Local Currency nose diving against the Universal Currency will hammer our economy. The only bail out is increased exports to counter that. However looking at industries and PSX that seems doomed as well.
Rest, Oil, External Debts, Imports are just a few of the factors that will put cold water on all tax and GDP as long as PKR crashing.
Just see, even half decent locally produced 1300 cc vehicles have jumped up by almost a million approx in last 2.5 yrs and specifically in last 1 odd year. These local manufacturers who used to be seriously under supply (delivery times) are now in surplus because with crashing PKR and skyrocketed inflation, sales have deteriorated big time.
Back to the point:
Having said that, I am pro Real Estate investment but not at the cost of vested interests or ill-advising. only 25% - 40% of that saving at max should go to Real Estate for the enthusiasts who like to play around in Real Estate that too smaller investment rather than traditional 10 Marlas and kanal+ sorts worth multi-millions and high premium on files. It's not as extreme bad as portrayed elsewhere, also no where as rosy as it used to be 1.5 yrs ago. During that 1.5 yrs ofcourse USD has climbed quite sharply.
Khurram, i am also an expat for last 15 years. My suggestion, keep your money in Riyal. I am not investing for last 2 years and keeping my money in foreign exchange. In next 4 months, the dollar will touch 184. Just invest in middle of 2020 when the Ruppee will be stable and plot prices will dip further.
Currently cash is the king and Riyal/$ r the gods.