Dear experts , i am considering investment of pkr 50 m in centauras 3 bed apartment - rental yield is nice with 3 bed giving pkr 250,000 rent per month. My concern is on the price appreciation.. What is expected to be the gains in price appreciation in next 2 to 3 years for this investment ?
Alternatively , i would go for d-12 60x90 plot for around pkr 42 m.. What is the gain expected in d-12 investment ?
Third option is to invest pkr 25 m in gulberg green and pkr 25 m in 50x90 plot in d-12/1
Which option is the best in your kind opinion and expertise
Please comment and advise ...
Rizwan sb the options you are mentioning are already very much saturated.I dont think so that these options are going to fetch much gains.It would be better to diversify your amount in various schemes. Gulberg greens may bring reasonable gains and spread rest of the amount in other schemes.
Thanks Falcon bhai, can you recommend a few options in the budget of PKR 45 M and also the expected time period for ROI ?
Thank you for your expert advise.
Rizwan sb,I personally believe that you should go with a 10 marla in D-12 if you are really interested in that place although i personally see no considerable gains at that place. Alogwith D-12,you should go for 1 kanal plot in dha 2 Islamabad and a 5 marla in Bahria enclave.This can be one arrangement.Second arrangement can be that 25 million option in Gulberg Greens and a kanal plot in Dha 2 ISlamabad.
Rizwan bhai if you are interested in apartments then consider Zarkon Heights. Luxury apartments and outstanding location close to airport. These will give you good rental income and price appreciation as well. For further discussion call me on 03015653172.
Rizwan i also want to share my personal experience.about 4 months back i purchased a studio apt at centaurus in 160 lak now rented on 90 thousand witout maintenance. Now the apreciation about 20 lak and rental. You calculate yourself.
rest of your options are not so attractive to me.
Yes i can also add one more option
in new commercial plazas CDA sectos only rental in shops is also highly attractive.
Just suggestion
On a similar note, for rental income and price appreciation some apartment projects in Gulberg Greens are also quite attractive.
For rental purpose in shops CDA sectors are good and safe and in apartments depend on developer .Gulberg green,G-11,E-11 are good options and other hand Askari tower 1,2 dha phase-2 is much better and safe option.
Regards
Hello experts ,
You are all recommending the option and i appreciate that but tell me why these options are better than Centauras option which I have proposed.
As Wali Khan mentioned below, he gained cpital wise and also earned decent rental on his investment in centauras apartment.
Why should I not opt for a 3 bedroom apt in centauras from capital gain (2-3 yrs) and rental yield point of view.
Do experts here believe the value of the centauras apartments have saturated and are not going to increase ?
Well when one has made his/her mind, its difficult to change and also, sometimes if one's heart desires or follows some wish that must be pursued.
To keep the discussion going, from your query I interpret that you will be interested in (1) good rental yield and (2) price appreciation. I am not much into the technical insights of the apartments at Centaurus but talking about the general trend and perception of the market.
Rental Yield:
- 90k/month for rent is good enough but in my view not extra ordinary or optimal. A 10 Marla double story that costs the same brings along approximately same (with +/- 5% variation) depending on location, demand extra.
As a relevant random example, QJ Heights in BT Safari Villas a 1000 sq. ft. 2 bed Apartment costed approx 50 lac with average rent around 32 - 35k/month. With those figures, if three apartments are to be bought together they could have costed in the range of 140k - 150k (max) with rental income approx 90 - 100k/month (min). Now in same area apartments are sold purchased at 7000/sq. ft. at min and 8000/sq. ft. at max. You can do the math and numbers to decide that for yourself.
- Future Growth
I may be wrong but I believe that in projects like Centaurus or alike projects where now its mostly on resale the market gets saturated. There can be steady growth or hikes, sometimes due to the fact that when PKR depreciates by default real estates and especially prices of constructed unity goes up too. As I mentioned earlier, project that are near completion or possession can offer apartments around 6000/sq. ft. and on the resale they can easily jump to 7000 to 7500/sq. ft. on prime locations of ISB. Again the numbers here look attractive.
Beyond the two factors discussed above, i.e., rental yield & future growth there are other important factors such as,
- Liquidity of Assets: The quickest time frame in which I can convert my asset into cash or exchangeable good. I am not very sure how much customers can be instantly engaged to cash or exchange a 3 bed for 50M.
- Locality: I am yet to personally experience the locality of the apartments at Centaurus. However, I would prefer a place where I can have more serenity, greenery, and quite environment when I immediately step out of my indoors. Gulberg Greens in that regard can be quite good.
- Saturated Properties: Not just Centaurus but that area of ISB is quite saturated (I strongly believe) with occasional hikes mainly due to the commercial activities or economic conditions of the country. Places that are developing consistently have more growth or at-least more demand and rental yields. For example Bahria Enclave and Gulberg are now starting to see some big setups being established. Specifically, in Gulberg Greens Telenor, MBF Medical City and Campus of Ripah University are few examples which will require more 'affordable housing' for the masses to keep those mega setups running.
These are my views and any corrections/suggestions are very welcome, in case I may have overlooked some obvious points.
Its not to take out or argue against the property in Centaurus that represents the elite but we have to look at that in the context of Pakistani real estate.
Its the same like Product/Brand concept (e.g., Made in Japan) that focuses on selling few but highly specialized products/items to a specific market segment. On the other hand its the Selling/Volumes concept (e.g., Made in China) that focuses on selling max units to max people. Simply its a question that is something like:
"Should I go for an iPhone X or a Huawei P20" - no definite answer as we all have our own preferences & justifications ...
Yes Imtiaz good analysis, I think at the end of the day, the main question has to be that what is the purpose of investment and your circumstances, and based on this you can chose one over the other
Good logical analysis by Imtiaz.
Imtiaz sb, this forum is now running only because of few people like you. God bless you.
The liquidity factor you mentioned for the apartment of 45M is very important for such a big investment.