Hi,
As an investor, which country can provide a better return on my real estate investment?
1. ROI based on monthly rental income net of taxes
2. ROI based on capital appreciation
In your opinion, which is a better option and why?
You can factor in economic and political stability as well.
Very difficult question.
General answer avoiding US and Canadar
1)- ROI based on monthly income no doubt Dubai is the best option in whole GCC as there is no property tax and its seems promising till 2020.
2)- ROI based on capital appreciation your own country of residence (if you are in Europe or western country only) or origin as ME may face problem in case of any unrest and expats may leave considering security issues. Always invest in your own countries for capital appreciation coz we have genius demand from local market.
Specific answer:
US and Canada aren’t good in terms of ROI based on rental but good in ROI based on capital appreciation restricted to new development rather settled area. Taxes are high there so the best option is your own country of origin Pakistan as we are developing country and there is a lot of room for appreciation considering local Population and their demand in coming 10-20 years.
Refer to Pakistan always prefer to invest in developed in hand properties (with possession) as they are hassle free and you will remain relax considering your overseas status. In reality people who invest in non developed societies suffer losses in terms of Time value of money where your investment remain block for long run in most of the cases.
Good insight Faisal. I am Canadian Pakistani and have access to real estate opportunities in both countries plus US (visiting Florida next month to check out a few)
I will investigate further on appreciation trends in Pakistan and see if it's better than the 10% YOY appreciation in Toronto/Vancouver.
Dear i recommend you to follow www.brecorder.com and economist for further details. As per last years stats we got 35%-42% ROI in stocks, Mutual funds as they are economy indicators plus property also appreciated above 20% (Lahore).
Let me check and share exact stats.
Depends who you are. If you are legal resident or citizen of US & Canada then invest there.
Pakistan Real Estate provides better ROI but then inflation eats up your money fast. Also lack to stability is still an issue.
Take recent example of Top City where future is totally uncertain now. Don't know if people will ever even get their money back.
This reminded me of TAJ Company scandal in Pakistan. Can't trust anyone in Pakistan.
Good point.
There's stability in US/Canada market. Can get 10% annual return on capital appreciation (after costs)
What's the Net return in Pakistan ? Can't factor inflation since a resident of Pakistan investing in Toronto would still face inflation
Very interesting to know!
Last 25 years inflation of Pak Rs is just 8.1% and we know that how much big flactuations Pakistan’s economy has been going through all these years and regimes.