@Ahmed if you are seeking help regarding tax consultancy, than feel free to contact me on my email address jamalmazhar@rocketmail.com
The new property tax laws are like protection money (bhatta) demanded by Govt from all Pakistanis.
I personally think that the new tax will not bring that much negative impact on the real estate sector but the disinformation which is being spread will be more devastating for the market. Jis banday ko ABC ka bhi nhe pata, woh bhi EXPERT bana huwa hy, while disguising the ordinary people.
Regards
Khan sahb mere dil ki baat kar di hai ap ne
Property prices crashing with the new Tax and new evaluation system. Already down 20-30%. With the new evaluation system in place, property prices will come down to 2009-2010 level or even lower.
Zero activity in market as no one is able to show white money at offical market value. It will be a free fall when people holding property will need money for one reason or the other.
@ Asad sb, thanks.
You can see the expert post above me. I rest my case.
Regards
Khan sb, It's a mistake from govt. After imposing various types of taxes they even failed to explain it to people in property business. Common people will conclude according to their own understanding.
Yes these taxes have affected the market, whatever if it's misunderstanding of taxes, but people are now afraid to go for transaction due taxes or black & white money.
Same is the case for overseas they'll not invest due these fears.
Imran Khan sb, you are right, lekin hum kis se gilla krain, Govt ne pehlay kis cheez ko clear/ explain kiya hy, jo ab new imposed tax system ko clear/ explain karegi... Majority of the people want to file their tax returns in Pakistan, but the system is so complicated, that even educated people are not been able to do it by their-selves. So, we all have to live within this system and survive. Our system is not good, but it is our collective responsibility to play our role for its betterment in our own capacity. Things will improve slowly and gradually In Sha Allah when everyone will chip-in.
On tax issue, yes, you are right, people are worried at the moment but things will settle down very soon In Sha Allah. The market will return to normal, just wait and see. If Govt will try to put hand on the BLACK MONEY, I will not oppose it... Even, I will not say k pehlay oss ko pakray, phir mujhay pakray... Jo be corruption ker rha hy, they need to be punished.
I am very positive and optimistic about good future In Sha Allah. Allah SWT hum sab ka haami wa naasir ho. Pakistan Payinda Baad.
Regards
Imran Khan sb, you are right, lekin hum kis se gilla krain, Govt ne pehlay kis cheez ko clear/ explain kiya hy, jo ab new imposed tax system ko clear/ explain karegi... Majority of the people want to file their tax returns in Pakistan, but the system is so complicated, that even educated people are not been able to do it by their-selves. So, we all have to live within this system and survive. Our system is not good, but it is our collective responsibility to play our role for its betterment in our own capacity. Things will improve slowly and gradually In Sha Allah when everyone will chip-in.
On tax issue, yes, you are right, people are worried at the moment but things will settle down very soon In Sha Allah. The market will return to normal, just wait and see. If Govt will try to put hand on the BLACK MONEY, I will not oppose it... Even, I will not say k pehlay oss ko pakray, phir mujhay pakray... Jo be corruption ker rha hy, they need to be punished.
I am very positive and optimistic about good future In Sha Allah. Allah SWT hum sab ka haami wa naasir ho. Pakistan Payinda Baad.
Regards
I can't comprehend why people don't understand the real problem here and why they keep saying it is about taxes. No one cares about taxes. Investments in real estate have been yielding hundreds of percent return in the past years. Any amount of tax cannot bring the prices down, in fact they might as well push them up because people would incorporate the taxes in their cost of doing business.
That is not even the problem.
The problem is valuation on real market value (as opposed to DC rates) and the sheer lack of investors who can prove that they acquired the funds legally and that there money is declared and tax paid.
The issue is that of black money and white, declared and undeclared and not of a few percent of tax.
If the government does not offer an amnesty and a chance to convert all their black/undeclared money into white money, I'd be surprised if the real estate prices can sustain even half of their June 2016 values.
Faraz sb lz indicate the lace where prices are down by 30 pc…I want to have some transaction.
I agree with Ahsan Khan. Real estate prices will not be able to sustain even half of June 2016 values. Simply because people will not be able to buy property on market value with white money. We are in for the biggest property slump ever in Pakistans history.
Did anyone one noticed that for last 2 to 3 days, property section in jang classified ads has shrinked considerably.
Naveed sb. Obviously that is because of eid..
Plus this DC rate valuation bull shit would not bother societies since they have already set their rates according to new standards which are approx 1/3rd of the original price so what is the issue?Plus not all investors have black money with them. And then these real estate association would not sit idle obviously..I am saying that it is easier said than done..At most a dip of 5 to 10 percent can be seen at some artificially inflated places otherwise no issues. Do you really think that investor are naive enough to throw their plots for peanuts?
Saadi bro, u r rite, no one wil sel plot at throw away price, bt if it came to dat point, even then they wil nt b able to find da buyer.
Regards
Can anyone tell where prices have fallen, i wanna invest. As the great Warren Buffett said, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
Kami, no where till now.
@Mr.Khan and SAADI ....sir, real estate will change a lot after these new measures.
1=How some one would be able to sell/purchase/sell a piece of land 3/4 times in 2-3 months time??
....say 1 kanal plot = 1 crore ...3 times selling in 3 months= 17-22 lakh taxes....so after 3 months 1 crore plot stands at =1.22 crore....and if cycle go on .....then such a society/ town will be in air only with no houses on ground.....
BCZ genuine buyers won't be able to tolerate such hike in prices .......
e.g........11 July 2016 1 kanal 1 kanal dha Lahore phase 8 x block = roughly 1.5 crore
so short term investors selling it 5-7 times/ year= 65 lakh taxes in 1 year.
So ... IN JULY 2017 its price=2.2 crore
......IN JULY 2018 // =3.1 CRORE
///////2019= // //=4.2 CRORE
................2020=//// //=5.8 CRORE
................2021=.....//.....=7 CRORE...
And this increase is just tax money addition without market movement.
lets discuss it now...after 5 years ,what expected changes can make ppl rich enough to purchase 1 kanal @7 crore and construct a house, and thus AFTER 5 YEARS 1 KANAL HOUSE IN DHA PHASE8 LAHORE= 9-10 CRORE ?????
This country is not that advance to cope with such a hike in prices of houses,
SO WHATS THE REVERSE THEN........???????
SHORT TERM investors( small genuine halal earners/ but most dealers/crooks/fraudias/black money owners/and lootmar money holders will switch directions.................IF YOU THINK OTHERWISE....THEN GIVE SOME REASONS.....
RESULT= in long run , gov will earn good amount from real estate
2=genuine buyers will enter market
3= short term investors retreating will result in prices decline bet 10-40 % thus favoring genuine long term buyers.
4= Pakistan housing issues( 1 million needed/year...but only 3-4 lakh get constructed) will be solved, bcz low prices= genuine buyers= genuine houses on ground
5= Discouraging for fraud societies
6=sudden losses to innocent retired old ppl and population at large due to dealers/societies gambling will end,
I THINK POSITIVES ARE MORE IN FAVOR OF TAXES.
..........BUT.....
Extra taxes on single house owners of 5 Marla/10 Marla/ 1 kanal houses will ruin the old age population and working class as well, SO it needs some relaxation, ...SAY ONCE 2.5% TAX ON OWNER FOR LIFE TIME, TILL HE SELLS IT AND 2.5 % TO BE PAID BY THE NEW OWNER ONCE ONLY FOR LIFE LONG.
At the moment more sellers than buyers.Market is almost dead because of new tax system.New investors are waiting for a situation to become clear or certain.
Unjana sa khof na ghara howa ha logon ko but no need to worry.I hope things will settle down soon in sha Allah.
Regards
@ nadeem:
Nothing to worry about, buyers are just waiting for the things to get clear. Once the new tax laws are clear, normal buying selling would start, yes it could be slow first 2-3 months but would be normal afterwards.