I have invested 40 million in national savings. I am getting a profit of 390000 per month i.E. 11.5 % per annum. Of course it is safe and hassle free. Should i redirect my money to property to get approx same profits or i can earn more/less? What is ur opinion? Gurus plz comment. I know many people argue about profits(aka sood) earned through ns schemes but for me i am scared to loose/stuck my money in property. Before corona i was working to divert the money to some cda property but i am confused if i should go ahead in present situation.
NS is consistent, hassle free and lower end return in terms of percentage - thats how it is designed to be risk free, less gains. Keeping the interested factor aside as an individual choice to go for that or not!
RE purchase time is good for end-buyers buyers. As I said few months back and reiterate some of the CDA sectors are lucrative but keeping in mind 2+ years. That as per my view will accumulate better than 11% per anum for sure. Let me put things in numerical perspective, i.e., before economic meltdown, I-series (14/15/16) in first half of 2018 (Jan to Jun 2018) saw an appreciation of upto 30% but since than there is less movement.
If you wanna go ahead, I-12/15/16/14, E-12, I-11 should be the pick in same order of preference as they are bound to rise. Try to go for category plot that is boulevard, corner etc. they may be a bit expensive but as Sector grows they are easier to sell and since there are limited to demand-supply principle applies when Sector is getting developed.
The trick is to buy in right sectors at right deal!
However, keep an eye till end June or early July if USD give PKR another bloodbath as we can see a hint today (this one applies to Foreign Currency vs Real Estate in PAK).
Many tnx Imtiaz bahi. Which society/ or CDA sector I should go for max gains? I can wait for 3 years. And for short term, max one year, do u think there is any option available?
I personally do not invest in interest-based schemes nor promote it, so my pick would be obvious. But in this time of termoil, when it is hard to say which way wind will blow, it is better to keep your assets as liquid as possible and for that Gold, foreign currency, interest-free saving schemes all are good options.
If you absolutely do not need these 40 million for next 2-3 years, then you can pick properties as bro Imtiaz and others suggest. This time it is buyer's market. Prices are stable and demand is very low. You can close a deal with complete peace and calm without rushing it.
I don't know if this will remain the same once COVID emergency ends. Because there are 2 very attractive schemes (Construction Package and CGT reduction) and hidden amnesty within these that can dramatically turn the market.
BBC:
As per expert articles in BBC recently on the world economy,(as our property sector is much connected to overseas), The international economy will bounce back in early or in the mid of 2021 because by that time some vaccine may have been invented for the Chinese or Wuhan Virus....
National saving or sood or whatever it is called:
You get normally 50 to 60% of your total investment in national saving in 5 years period..... Pakistani ruppee gets devalued 10% on the AVERAGE annually.... at the end of the day you got nothing out of National saving but you just maintained the value of your ruppee.......
Commercial property investment:
If you invest the said amount in a small commercial plaza, even if it is a single marla in size, and it must be at good location, then you will get an annual return of 5 to 7% in the form of rent.... & it is very likely as per my life experience that the growth of commercial unit is almost 100% in five years period.....
This is what i knew to the best of my knowledge and belief.
May Allah guide and protect all of us.....
Excellent analysis by the gurus. Regardless of the argument whether NS income is halal or haram,I believe we should try to keep ourselves away from anything which seems doubtful.Purely a personal opinion.
Gurus can you highlight which are the top picks for purchasing a commercial plot during next one year, to build a plaza in coming few years keeping in view the capital returns and future rental income.
Dealing in Riba is a major sin and is mentioned in the Quran
“but whoever returns (to Riba), such are the dwellers of the Fire — they will abide therein”
[al-Baqarah 2:275]
“And if you do not do it, then take a notice of war from Allaah and His Messenger”
[al-Baqarah 2:279]
Just reminding myself and all my brothers in Islam.
I am no expert on commercials, so my two-cents:
Commercial can be in multi-billions or just few millions, it depends on how deep one's pocket are.
- Generally CDA commercial sells well and get better ROI. Its been debated N times. New Blue Area may be worth investing and I wrote about that on a thread in recent past:
"Is the new blue area worth investing in?"
https://www.zameen.com/forum/discussions/buying_property/is_the_new_blue_area_worth_investing_in_-33016.html
- Rest, if one is into shops sort commercial probably best picks could be Gulberg, Top City and Private Approved Societies adjacent to I-14 to 16 sectors. Time is not the best as far as ROI but hoping things will improve once pandemic stuff start to eradicate.
The main difference between NS and real estate would be of freedom to liquidate in property as compared to unfavourable fixed deposit terms’,
High risk high reward, a your 40 million in intelligently bought commercial can double in next 3-4 years, which I guess would be twice of what you would get by NS.
How do people get profit out of the construction of a house?
For example, if one
buys a 30x60 plot in Faisal Town Block A or similarly populated society for around 50 to 55 Lac
constructs a double story house for around 84 lac at estimated 3000 per sqft construction cost for a 2800 sqft coverage.
pays CGT at the rate of 10%.
After all these costs he has already crossed the line of 15 million which is the market selling price point at the moment?
For Commercial property investors:
Capital Smart City is about to launch 2.5 Marla Commercial in Harmony Park Block (low cost block). Though not confirmed but it is supposed to be in the range of 40 to 45 lakh (on installments) with total of about 200 plots!
Residential plots of 3.5 Marla sold well and quick here so it seems to have potential. Will too much mini commercial will devalue it? - only time can tell. A mistake that BT and Gulberg have done repeatedly in Phase 7/8 and Greens
For me, I would suggest you to invest in different pockets to get best gains. Options would be:
1- I-12/ I-15/ E-12 (Plot near to main road or on main road, avoid very deep streets)
2- Bahria Enclave new Deals Sector B2, N (Old Commercial Area)
3- DHA Multan (Develop plots Sector M, H)
4- New City Wah Cantt (M -Extension)
Commercial:
New City Wah Sector H Ground Shops (33 lacs company price per shop) on profit +- 5 lacs
Build commercial unit / purchase commercial unit in populated sectors i-10/i-9 with good rentals.
You can also go for Class-3 markets of sub sectors G, I Sectors.
Commercial Unit is better than Shop as you are the sole owner from bottom to top and can renovate as per needs and demand.
Respectable Imtiaz bhai, Isloo1, Khalid bhai, Ilyas bhai,
First of all I want to thank you for your expert openions - many people gain a lot of insights and information and it really helps. Jazakallah khair for your sincere advises.
I am an overseas Pakistani and want to invest 1.5 to 1.7 million. I have read many of your discussions and started checking properties on this great platform zameen.com. I personally like Islamabad and want to know more about sector I 12 where i want to buy a plot or any other area closer to old sectors that you suggest. I also come across DHA Homes, DHA Valley worth 4.5 Million. That attracted me too as I can buy homes for my 3 children instead of a plot. What is your advise?
Appreciate all these mentioned experts openion. Many thanks :)
Not an expert by any means ... Many would counter argue but here is a direct answer:
-- BT is a sinking ship. This has to do with decades old mindset that BT new launches will have people queueing up all night to get a form. Oversell now and wait for later. This strategy worked to a point but now it's backfiring and recent deals like Central Park, Nawabshah have been exemplary flops. BT KHI launched Greens but every advertisement space every single comment opinion bashes MR as a total fraud. All of sudden new charges and forced Possessions are final Nails in that coffin. If you wanna buy, construct, live/rent BT is good enough, it is not for investment.
-- DH failed to adapt, still believes in high end pricing and larger plots. Bahawalpur and Multan speak of that strategy that it doesn't work in USD @ 150+ era. Solid enough for quality life style, it's missed the trick for being still relevant for investment!
Valley had been a dead horse for a decade and needs lot of dedicated effort and probabaly a bit of Sharam too to atleast pay back family of Martyrs/Shuhadaa who had their lifetime savings invested!
-- Capital Smart have demonstrated fantastic speed of development, make things happening, new launches, best ever marketing campaign of PAK real estate. It suits best for ones on installments or end buyers that see a plot in 20 - 25 lac budget. Though not sure how the reselling will go with all dues clear. Other like Park View, TopCity are doing OK as well.
-- When it comes to lumpsum payment deals, CDA was, is, will be best atleast for a forseeable future. Pathetic infrastructure and issues, not that ideal for personal living but best among others for investment!! Even worst of CDA locations are far better than many best of the existing private projects!
Fully developed CDA sectors are at min 30 lac/Marla with an exception of I-14/I-16. I-12 has all the potential to touch 20+ lac a Marla the day it gets developed and to do so, CDA has to come out of usual nalaiqii
It sells, like airbag less junks of cars that are sold in the bracket of 2.5 million with manual window recliners when the world is almost into driverless cars!!
In a world and matters about doing business, most of the time you make good enough money from stuff you wouldn't like for yourself.
General Rule: Invest in CDA, live in BT/DH
End Buyer or Investor, invetstment sprint or marathon?? These are the ultimate questions...
Imtiaz Sb. Has said it all which is 100% correct and accurate.
Just to add some good investment options:
- Residential Options for Investment:
Full Payment:
CDA: I-12, I-15, I-16, E-12
BE: Sector N (New Deal Boulevard Facing, old Commercial area which has been turned to Residential), B2, Sector H
Gullberg Residencia (Possession Only plots)
New City Wah Cantt Phase 2 (Block M, M-EXT, R)
Installment Options:
CSCI, Rudn Enclave (no NOC Yet), Blue World (no NOC Yet)
Park View
Commercial on Installments: CSCI 2.5 Marla (Coming Soon), Rudn Enclave (Overseas Coming Soon)
Faiq jan wroora(bro), let me make it very simple for you.
If this is your first investment and want to build your home.....
Just buy a plot with a POSSESSION wherever you want to buy it. With the first few successful investments, you will learn a lot and you will get confident as well.
If you got stuck in the first investment then you will be always in hesitation to go for the second investment .... Once you will play carefully and wisely and understand the dirt nature on pitch then you can hit sixes in your desired directions. So please buy a plot with possession.
Being a Pakistani, we are never dedicated to our profession and never fulfil our promises mostly at time so if you buy a non possession plot, then it is maximum chance to stuck there or wait for a long time.
Keep a safe distance from DHA valley like earth has from the milky way in the sky........
If it is extremely important to buy near to isloo ( Islamabad) then go for the sectors mentioned by the gurus already big big big but( in trump language) it must be a possession plot please.....
Many tnx everybody. Seems obvious there is no comparison between government savings schemes and real estate. I will act accordingly.
I-15 plots of 5 marla are roughly one million cheaper than plots of I-12 as per current zameen listings.
Which sector has more potential keeping in view cost difference
Capital Smart 2.66 Marla Commercial @ profit of 5 Lac even before the launch!
Seems like CSC guys calling the shots started to take crash course on Deal Launches from MR!! If the trend continued, dont e surprised with another BT in the making!