I am from lahore.
I want to invest 10000000 rupees in some property from where i can get monthly income. I want to know should i buy a shop and rent it out or should i buy a house and rent it out. Which option is better. What is your opinion.
Experts recommend shop for rental income as it involve no headache of maintenance etc.
However there is PAGRI/goodwill issue when you want to change the tenant.
Some Guru can explain it more.
In terms of rent shop is always a better option depending upon your location. Pargi/Goodwill has been abolished in Islamabad since 2001 according to Islamabad Rent Ordinance 2001. So if u rent it out don't take any goodwill plus also mention in agreement and no one can claim goodwill. Yes it is right a shop needs lower level of maintenance than a residential house. For both there is 10% increment per annnum in rent value.
The best thing is to select your target areas for both residential and commercial options and check yourself what the market rent is there. This will also give you a better idea whether to go for shop or house.