Investment with rent as the main objective

Salam members,

We want to invest 70million, our objective is firstly rent but also capital gain, we don’t want to invest in a place that has already peaked, after investing the maximum
time that we can wait for the return is a year.

I have visited Gulberg Greens thoroughly, although there are some really good projects like Prism, Gulberg mall, Magnus etc and they do offer rent but we are more interested in actual rent which is bit of a risk due to less population.

Bahria phase 7, food street area (where KFC and other brands are) is good but the rates are too high, that’s what I felt but I don’t know much about the area.

In Bahria enclave there is a project right beside the new head office which are giving good discount along with the rent but if you opt for no rent then lump sum discount can be around 30%!

I also visited I-8, again KFC round about area, good projects but due to it’s location, it’s way too expensive but here too I don’t have enough knowledge.

Lastly, the option is Zeta mall in which our relatives have already made their investment, the only thing that I’m even writing this is b/c we are thinking that maybe we are bit too late as the prices have been revised number of times and also they are now offering less discount.

Can you guys plz advise me which would be the best option? We don’t want to divide this amount and also our priority is that the investment should be secure even if that means less rental value.

Apologies for the long story.

Dear Osama
Buy a plaza in dha-2, which is sitting at top in the entire twin city realestate now a days.
The cost will be 6 to 7 crores & minimum rent will be 3.5 Lacs per month with 10% annual increase.
Your property will sure appreciate In Shaa Allah.
Alternately, buy the same 6 story plaza in phase-8 in overseas-5, you will get same ROI & appreciation.
3rd Option:
Buy a 4 Marla Commercial plot in bahria phase 1-6 @ 5 crores in bahria paradise commercial, build it and rent/sell per Ur choice. Here rent will be phenomenal In Shaa Allah & appreciation guaranteed.

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You have written very long message for large budget of 70million, but small thinking of using someone else land/Building and buying something in air without owning land.

Why have you not considered options of owning land and constructing your own plaza or buying plaza with full ownership.

I think revise your strategy and working

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JazakAllah khair for your reply, can I have your number?

Buying ready made option would mean that I will have to purchase something that has already peaked and so both the rental and capital gain would be less than let’s say a project which is near to completion.

Not too interested in Bahria but good option in Dha can surely be considered.

Thank you for your reply.

The reason I’m not interested in constructing my own plaza is b/c I feel that now the time for plaza have passed, it’s the time for Malls, all facilities under one roof, recognized brands etc.

Ok good luck for giving your money to someone else hands

Nothing is guaranteed. I repeat nothing is is guaranteed!

I agree with you Osama about building your own. The amount of commercial sitting to be sold is increasing every day.

Have you considered smaller zone 1 commercials like I 10, I 9, or places like commercial market in Rawalpindi. Considering these are established markets and you can get consistent rent probably not capital gains.

Places like dha-2, bahria phase-8 (selected areas), bahria phase 1-6 etc, CG is guaranteed as well as rental consistency.

Check B-17 as well before making any final decision. Future appreciation wise B-17 commercial property is also a good option as Margalla Avenue construction is in full swing.

Thanks for your input. I agree with the commercial rawalpindi part but not with I-10, b/c there you can only get local shopkeepers with their several problems like delayed rent, short term contracts etc. Commercial option is a solid one but the maximum rental as per their demand was 0.4% so not even bare minimum of 0.5%. Meaning the juice has already been extracted from them so yeah not much in terms of capital gain and at the end of the day rent is only a small proportion of investment, major chunk of return lies in the capital.

I could be wrong though.

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Thank you for your suggestion.

B-17 is too far away, although with Margalla Avenue distance would be reduced but I just don’t personally like it, nothing to do with numbers.

may be try D-12 markaz

For optimal rentals CDA commercial is best.

As Nasir sb suggested D-12 as the area will rise overall + D-12 is turning to be an elite sort sector above G, below F, on par with E. The sector is among top priorities of CDA

Plan B: Furnished/Unfurnished Apartments most preferably at slots like E-11 and Gulberg Greens. The rental can easily be around 0.7%+. Though they might be a bit hard to sell. Recent experience in GG has been quite positive with rentals.

The trick: diversify as much as possible. In 3 odd years Top City commercial might turn into a very lucrative option.

Nasir Sahib, Class III five marla commercial plot is around 70 to 90 Millions in D-12 as Per zameen.com leak… For such small amount in commercial, It would be wise to seed this amount first and then go for bigger commercial and rent… There is no Juices left in ready made commercial buildings mostly… Building yourself and then renting it out is wise but that need to have ceiling a bit bigger than 70 millions…A couple of years ago i wanted to buy a 6 marla commercial plot for 30 millions in E-11 at the back of double road but the ceiling of the plot was 40 millions… So we seeded that Amount in other promising developing societies in commercial plots and waited and that turned out to be too fruitful for us… After seeding successfully that 30 millions, Now i am able to buy commercial plot in busy commercial area and construct and rent it out… This whole process took me three years…,… But to tell the truth, Everybody got own limitations, Facts and priorities… I just wanted to share my own experience in the last three years…
General piece of Advice: Do not invest with Clown Malik Riaz in commercials (Over Supplied and Under valued) Please…

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Ilyas sb
I am surprised, you are negating billions of profit, people are making non-stop with bahria commercial investments.
If one decides just on the name sake, then everyone must vacate the society or stop investing in DHAs (5,3,4,2) just because they did fraud in DHA valley?
Then CDA comes under the same fraud bracket!
They have wasted solid 38 years in developing I-series…still not able to get G-12…what about G-14 & all other their master pieces?
So no one must enter in CDA just on the name sake?
Same goes for top city on Moeez guy?
Malik Riaz no doubt same as all other developers but everyone following him on standards…
I put all of my hard earned money in bahria in construction business and Alhamdolilla, earning more than 30% profit in a row…
Have done 4 successful projects in phase-8. Have several properties in bahria civic center with lucrative rents.
You can visit and I can show you, dear.
Allah Pak gave me so much that I started in phase-8 with just 1.5 crores with partnership, then invested on invester rates in a new society in Talagang, with same partner, Alhamdolilla it got so lucrative that now we are looking forward to start another brand new development in Johar Abad, Khushab with partnership.
So all was earned from bahria phase-8 & phase 1-6.
Bahria is having now 18,000 employees whereas Ch Majid of B-17 has few bodyguards & some clerks. .
I am not a fan of MR but the work he has done is second to none, bro.
Sir, every society has its high & low performing areas, so is BT in all phases…DHAs in all phases…
People are saying B-17 as dream of life but I say here now & I will standby with my word…B-17 is nothing than the signal free Islamabad Highway.
B-17 mostly good for Taxila & downward commute but IH is commute plus business hub as all best societies … Gulberg, DHAs, BTs, around & more & more are coming. IH is much more than MA.
Talk of residentials in phase-8, my bro took a 10 Marla in just 3 months in block L and now he has been offered 20 Lacs profit…
I have written in details about phase-8 before.
Whatever I wrote here can be shown to you, sir, if you visit our place…

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No doubt MA win people confidence and BT has great repute in the market agree with Qayyum sb

Not that other developers/Housing Ahthoroties are angles, most of them are crooks of category A. However, the fact must not be oversimplifed or overlooked.

– You can never compare CDA land Acquisition with that of Encroachment by BTs, whether that’s RWP, LHR, KHI. I know many of my contacts in G-14 that are not selling their land to CDA and CDA is helpless as they are in court. CDA can’t adopt the MR strategy to send a few Khokhars to acquire (read snatch) 1000s of kanals in a single day.

– BTs might have potential (depends on how one looks at it), last few launches of BT (in Enclave, KHI, Nawab Shah have been absolute fiasco). PES is in jeopardy for almost 2 yrs. The rule for commerical’s success is very simple:

– A. Massive population around (Customer Foot Fall) and no matter how much commercial you have/sell, it’s always more demand than supply.
– B. Centralized Commercials, there is a reason even centuries ago the English developed (CBDs, City Centres, Down towns). Same goes with CDA Markaz or let’s say Civic Center.

Anything else is a hit or miss but no certainty!!

Having said that, BTs are good to go to but not that they are that good. Pathetic Commercial just outside in my muhallah abadi have been sky rocketed in last year or so.

AQ Sahib, you have very successful experience with the Clown and you make a Dumba Sadqa and invite me with the forum members… :slight_smile:

Actually the question was about the rent and capital gain… No doubt the rent is mostly, depending on location in clown city, is comparable to CDA sectors but the clown city is the worst in capital gain as compared to CDA…

In 2012 i invested in two top class located commercials in hub commercials in clown city phase 8 and constructed and rented them out… i am just enjoying the rent but no capital gain so far… though the rent is comparable to CDA sectors…

Where in CDA sectors my commercials capital gain is 5 to 6 times of the initial investment since 2012…,

Note: Clown means Malik Riaz
City means Clown’s town(Bahria)…

Ilyas Bhai
You are cordially invited but dumba may not be possible in bahria to cut :grinning:
Sir, like I said everywhere low & high performing areas exist. It is not bahria mistake that one buys where there is no residency around & add to one’s loss rather it is buyer mistake to go with the bher chall.
CDA commercials cost like fortune and there are low performing areas where return is less than .5 even 0.4.
I myself have several properties in CDA Alhamdolilla but now decided to sell the one in even F-11 Markaz on low rental. If I just say selling, it would go min 70 Lacs but rent will never go to even 23,000…yes in F-11 Markaz.
As per BT or DHA hot areas , the rent must be min 32,000. I am now selling & shifting to BT.
Yes, for pure gains, CDA commercials better.
Sir, talk to me in person & I will tell you how lucrative are BT hot areas in commercials as I am having now.