Salam everyone,
I need sincere and professional advice from experts. Please read the below case and suggest.
I live in rawalpindi on rent of 20k per month. Now, i have gathered around 4 million rupees. I have two options. 1) to buy a small house to avoid rent and hopefully increase the house value for the next 10 years or so. 2) to invest the same amount in multiple projects to gain monthly rental and/or increase the value by 4 to 5 times.
Now, i need advice from the experts on which path should i take. Should i simply go for house and avoid rent and increase house value or will it be more profitable for me to keep on renting and invest the amount on other projects to gain equal monthly rentals and increase the property value?
Which one is more profitable? Please share the details of your suggestion also.
Thank you
Dear brother,
It's all about your priorities in life. Having own home is everybody's desire.
I think you can take in between approach. Buy a plot in 25 lacs budget and leave it for the sake of building your house. Bahria Phase 8 is an area you can target to get a reasonable plot.
For the remaining amount invest it in good housing project on installments. For instance, you may consider capital smart city 7m or 5m plot in overseas block on installments. In around 3 years time you will have 2 plots in sha Allah. You can then sell of your investment plot and construct a house for living.
If its urgent to have your own house and your family needs that you should construct your own house first and get rid of rental payments.
Regards,
Khalid
I am a private worker and only free at weekends. If I opt for my own house building, I'm afraid the people will rip me off big time as I don't have any idea about this market.
Isn't it better to buy a small 3-4 marla house in average locality?
Go for your own house, do not think twice. You can save again for investment, but house is peace of mind and enjoying the fruits of your hardwork. So if you postpond the peace and enjoyment for the later life, then what's the point.
Do not weigh it with the rent. There's no comparison between peace/joy and money.
Don't worry, no one will rip you off if you do not try to be penny-wise-pound-foolish.
IN that case, you should consider building your own house. Investment options are open at any point in time in the life.
I would like to give you one advise "Location and Locality" should be your key consideration, as you have to live there for rest of your life and you and your family needs a peace of mind. Therefor do not compromise on location and neighborhood, what if you select a wrong area and you could not able to live there because of the locality?
I would suggest you to consider Phase 8 for personal living as the area is clean, environment is good, streets are wide. If you get something in a reasonable price you can then plan your construction accordingly step by step.
The other areas in low budget would have lot of sanitation issues, cleanliness of streets, narrow streets and fishy people around.
Best of luck and all the bast brother.
Regards,
Khalid
Farhan, the budget of 4m for buying a plot and building house is too small. Of course you can at max buy a small plot in Bahria 8 as rightly mentioned by khalid but on the remaining amount, investment wont yield anything that would beat the future increase of cost of construction as well as inflation. So most likely you would be again short of the budget with same proportion as today.
My sincere advice would be go for built up somewhat old property in an average location. This will not only save you from rent but also save you from a very very big hassle of construction process.
When you get more money, you can always sell your house and build a dream house also.
First priority is to get your own house. Either buy a pre-built house or built it by your self but no other option should be considered.