Re: The great real estate race
actually Frauds the chances of the US housing bubble exploding are much higher than the chances of a collapse of Pakistan's real estate market... there's plenty of European/Gulf money flowing in to keep prices stable if not high.
Re: The great real estate race
PA.. chances of US real estate bubble bursting are focused more on a few key areas. In the rest of the nation while property values are high, the price to avg annual income ratio is not skewed the same way it is in Pakistan.
The money for investment propert coming in from gulf and europe will keep the prices stable in the short term.
lets look at it logically..and think of it from a supply and demand perspective as well as returns basis.
how many people will by how much property and what will they do with it, if u cant resell it at higher price then is it a good investment?
with fewer buyers in the market to be able to afford it, the supply will be higher than the “qualified” demand..i.e. not just ppl who want it, but ppl who want ti and are willing to pay what you want for that property.
if prices escalate that property is out of reach of most people, then what do you do with it, if you cant sell it at high prices..what price do you sell at.
rent it? how much will you get on rental to be able to to make it worth your while to have your capital tied up in a property.
speculative real estate investments are causing concerns in real estate circles in US, one would think that the same concepts apply globally.
Re: The great real estate race
We've been and are involved in several cases where so-callled reliable people have been left in charge of properties and no good has come of it yet.
From what I saw and heard on my recent trip to Karachi I'd have to side with Fraud on this subject. You can invest, but don't plan for a long-term. Flip it as soon as you get your hands on it. That's the only way to make money there.
Re: The great real estate race
The best investment is in commercial property,like a mini plaza of 3/4 shops..they are easy to maintain and have very low upkeep.I just sold 2 of my houses in F8 islamabad which earned me a profit of about 70 lakh calculating lnflation.I have invested that money into commercial property which get me about 1lakh 25000 a month rent..which is more than enough for a single guy to retire in pakistan after a few years :)
Re: The great real estate race
I posted this few days back in Business section of Gupshup.. Prices have surpassed compared to property prices in USA in Lahore and Islamabad.. If u bought something coiuple of yrs back and sold it now u have bagged millions of US dollars.. if anyone want to know prices or good advice I am available to advice in Lahore..email me .. but its good to invest in long term secure schemes in Islamabad .. few new schemes are coming up in Lahore these days.. dont put money in already high prices ones in lahore.. only commercial ones are viable in old areas..
Re: The great real estate race
It really is a crazy market.
I'm generelly interested in Property in Pak but I'm not buying yet.
some pros and cons
my parents just sold a house in isb and made quite a profit, well they didnt sell it for the money/profit but as no one was looking at the unfinished house and there were rumours that some other party/properity dealer of the area wanted to sell it on our behalf and get away with the money.
In isb some major schemes are arising (e.g. Defence, Baharia Town) - Defence is going towards my fathers village (properity value is raising there and Baharia Town is going towards my mothers village, same here, people are selling off their family owned landed, way too early. Some dealers are running behind some landowners to sell off their land to such schemes and I've heard are throwing checks at them to, so that they accept.
Some people are making big money out of this all, but the poor ones are not the real winners.
Re: The great real estate race
look at Pakistan real estate trends over the last 20 years
So, what are the real estate trends in the Pakistan for the past few decades?
My father owns a flat/Apt. in Askaris in Chaklala, and it's price values has tripled since he bought it in 89. But so has inflation, so I am not quiet sure if he made any money. And that's all I know about the RE trends in Pakistan.
I have heard the more and more people are buying houses in Islamabad as it develops and grows.
Re: The great real estate race
my father had property in different localities of lahore but following some wrong advice, he suffered loss. he sold all his property 2 years before the boom we keep hearing about started. he had to sell it at a depreciative value. the same property is double of the value he had purchased it at. so..... no advice from me as right now, it is adviseable to sell or keep rather than buy. but i dont know. maybe some experts would have a different opnion.