Lahore Real Estate Forum

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Saturday, February 5, 2011 04:38 PM PST 

Respected CMY sahib and other valued viewers .

i need your advise and cooments. In case a retired person has around 50 lacs of investment.
what is the safe and possible way of investment to earn proper living in current situation in Pakistan other tha putting for interest in a bank

aalee

CMY replied on Saturday, February 5, 2011 06:32 PM PST 

Buy a Safari Villa in Bahria town and rent it day after transfer. You get running income and will have lot of value gain in future.

Ch Mujahid Yasin ( CMY )
03224009967

AALEE replied on Saturday, February 5, 2011 08:11 PM PST 

I really honour your advise.Thanks for your prompt reply and comments. However, would it not be difficult and odd situation in case one comes accross a tenent who is reluctant to pay the rent and also refuse to pay the rent. There is no way in Pakistan to get rid of such tenents.
Is Bahraia town safe from this point of view.
Further the respective safari villas are located in lahore bahria or PINDI.What is the rent their rent value now a days.
Thanks

Saleem replied on Saturday, February 5, 2011 11:43 PM PST 

good idea

Ahmad replied on Saturday, February 5, 2011 11:44 PM PST 

I have a slightly different point here. I suggest you should diversify your investment. If your kids are independent then probably you will get some pension to meet your daily needs. Other than that you have four options to invest your money: property, stocks, saving account, and Gold. I suggest to keep some part of money safe. You can spare up to 30 lakhs for property investment to buy a plot in a good society. 10 lakh can be deposited to saving account because as a retired person you will get lum sum 12 thousand per month from saving account. Remaining 10 lakhs can be invested either in stocks or Gold. Gold is secure but its a physical asset. I prefer that you buy some stable shares in stocks like Fauji Fertilizer, Kot Addu Power, Pak Petroleum, Hub Power etc. These shares have a history of good return on investment. I hope it helps.

MAS replied on Sunday, February 6, 2011 03:40 AM PST 

Each individual case is different. This is a retired person and 50 lakhs is not a huge sum of money. Thinning it out into different forms of investment would probably not be very productive. Stocks have doubled in price over the last 18 months and Gold has also seen sharp rise. Property on the other hand is on the low side therefore I tend to agree with brother CMY in this case. Property has the advantage of giving you CASH FLOW (in form of rent) while protecting you from devaluation of your capital along with possible value gain due to locality development.

As for the risk of getting stuck with a bad tenant, I don’t know of any investment/business in the world that is risk free. You just have to use your best judgment in choosing reliable tenants and develop expertise in drafting legal contract and other related matters. After all most houses are rented out successfully so it cannot be that bad. Also an owner might put his rental income in Islamic bank and earn some halal profit as well. As for which property no one is more qualified to answer that than CMY and he has already given his advice. It would be very helpful if brother CMY would also comment on the expected rent of these Safari Villas.

@Ahmed: As a general approach (not in this case) I have advocated diversification before (including a little bit in Gold) on pretty much similar line as described by you explaining reasons behind each choice. It was probably viewed by LRE as unfairly painting property in a negative light which was not the purpose at all. Readers may please feel free to challenge and contradict my approach.

khalid replied on Sunday, February 6, 2011 06:25 AM PST 

i have same quastion do u please explaian how much is villa and how much should be rent thx

limu replied on Sunday, February 6, 2011 03:08 PM PST 

I would like to disagree with the option of buying a saffari villa and then renting it out in order to have a regular income. Such a theory can only be fruitful in case the house you are renting out has solid construction and does not require any major maintenance before 5 years min. Talking about Saffari villas, it should not be hard for one to guess that how good a third party construction houses can be in a country like ours. Water seepage and termite are the major issues of every second villa there, meaning once you villa gets afflicted with any of these, instead of getting some regular income from that villa, one would rather be pouring in extra money to get these issues fixed.Getting rid of such a villa would almost be impossible as one would never want to dispose it off on throw way price.No offense intended to anyone, i have just put forth a reality based upon my own extensive reasearch on these villas.

baba ji replied on Sunday, February 6, 2011 10:52 PM PST 

AALEE sahib, there is no easy money in world. Renting is also risky sometime. I cam eback from canada because of illness, i had only 30 Lakh Ruppees at that time. it was 2 years ago. i opened a bakery with 15 Lakh only and earning profit of 70,000 almost every month. the remaining 15 Lakhs i bought a plot, that is almost in same price now. but it will be ok in future. dont invest all your money land or property. this nation is going to be hungry, so start any food related small business or shop like me.

FAROOQ replied on Monday, February 7, 2011 05:19 PM PST 

Dear Baba Ji,

Its nice to read your success story of opening a bakery. We would appreciate if you please share your experience in detail like bakery location, franchise or own, products, procurement etc.

May Allah almighty bless you with more success in business.

AG replied on Monday, February 7, 2011 07:52 PM PST 

Al Hamd-u-LiAllah.
Pakistan is still blessed with people like you.

Faisal replied on Tuesday, February 8, 2011 02:04 AM PST 

After reading all this I think mr investor will be more CONFUSED than before.....

LRE Hot Topics replied on Thursday, March 24, 2011 04:15 AM PST 

Post added to LRE Hot Topics list
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Monday, July 26, 2010 01:24 PM PST 
What a retired Person can do in pakistan after retirement

Respected CMY Sahib!

I need your valuable advise and comments about what an expatriate who is returning from abroad after retirement and have limited funds to start I hope you will find out a few minutes of your precious time and will say some thing

What is near fututue of the property. are there any chaces of appreiciation of the prices of land in different housing schemes like Formanites nasheman Iqbal etc or one should sell it and invest some where else
is it safe to invest in mutual funds in Stock market can one get some permanet yearly income from them
what are prospectus for starting a Live stock farm or if school what type

Asif Sardar replied on Monday, July 26, 2010 01:35 PM PST 

Dear Alee,

Investing in property with low funds will not give fruits in near future (at least in FHS and related societies), however you may plan it for long term. Please also note that FHS is not 100% LDA approved. only 1100+ Kannal area is approved.
For Mutual funds, please check the Products of MCB (Asset management company), http://www.mcbamc.com.pk/
Livestock business is risky and needs hard work and good management but gives very good return.
The easiest worthwhile strategy is to open a school or Academy with good teachers team, in good location and with good marketing. Low Risk, high gain, less effort and not v big investment.
The breakeven point for a school business comes at less then even 35% occupancy.
--

hamid khan replied on Monday, July 26, 2010 02:35 PM PST 

respected sardar sahib do u have any personal experience of any school or academy.if u have please tell.

Salman replied on Monday, July 26, 2010 03:10 PM PST 

Dear Aalee,
Evaluate Poultry farming, goat farming, calf fattening etc. In food business, the element of loss is minimum.

Asif replied on Monday, July 26, 2010 05:45 PM PST 

Dear Aalee,

In my view business is not easy job in Pakistan for the expats who have been doing No. 1 there but to do business here you have to do everything No.2. Lot of problems, hurdles, tension, credit etc. My one friend from Saudia lost 1 Mio by doing business with his very close friend. In Pakiistan no brother, no sister, no friend, but only the money. Your relatives will ask you to share your amount in their business but never do that.
I think the best way for you to get regular income is either to keep your money in Meezan Bank or purchase shares of PPFL mutual fund of Arif Habib Investment to get good return on yearly bases. This share is now @ 8.75 and will go up very soon so you will get good appreciation of capital and dividend as well. The property business was good before 8 years back but now every plot, shop, office, apartment is for sale and no buyer. Even the rental value is not equal to .70% of your investment. Anyway please make research and then take a decision.
Regards

SSH replied on Monday, July 26, 2010 06:38 PM PST 

Very correct comments by Mr. Arif. But I'd differ him from his suggestion of investing in something which would only yield "Riba" or 'Sood". Please keep away and try some Shariah' compatible investment.

Masood Khan, Riyadh replied on Monday, July 26, 2010 11:29 PM PST 

Brothers, AoA

Retirement means to retire. You neither have experience nor energy in this age to do all these activities. You have to be a croock or at least half croock to run any business in Pakistan. Please save you soul and do not get involved in anthing of the sort. There are too many sharks in Pakistan and they will eat you up. Just plan in a way that your requirement become limited and you can survive on your savings.

Friend replied on Tuesday, July 27, 2010 01:49 AM PST 

Good suggestion mentions above, but also look into National Savings schemes and OPF Pension scheme which will pay you monthly income. Please brother do comments on these two schemes

regards

Asif Sardar replied on Tuesday, July 27, 2010 09:37 AM PST 

Dear Hamid Khan,

I had 03 years experience to run my own academy (Solution institute) in evening and got v good response.
I will share my experiences with you, please drop an E-mail on .
===

HM replied on Tuesday, July 27, 2010 03:01 PM PST 

If you do not have a status/ego issue, look into the idea of doing a small retail shop of any basic non-perishable commodity on a road with good traffic (like Wahdat Road, College Road, Main Market). For example, an electric supply store (switches, bulbs, coils, etc), paint, hardware and sanitary (pipes etc, NOT tiles). However, it should be a low-profile store without too much spend on decor.

As an expat, you have a good idea of what quality of service means; just apply that here. If you deal with customers honestly and politely and sell only genuine, good quality products, in a few years you will be amazed at the kind of turnover you're making. This small shopkeeper segment of society has done fabulously well in the last 10-15 years

Plus points:
-Good margins
-No credit sale
-Stock retains its value, does not depreciate
-Low set up/sunk cost
-Timings are reasonable versus consumer retail set ups that stay open till late
-Rent for these kind of shops is not that high

For any business, listen to the advice of anyone you want, but ONLY act on your own research and instinct. Most business people here have no business acumen, just running their dad's business or scamming people. Research the entire supply chain thoroughly (i.e. whole-salers like Shah Alam, distributors who supply to shops, and the shops themselves).

Just never waiver on honesty. It is the one thing Pakistani society will repeatedly try to take from you, but only you can choose to give it up.

shakeel ahmed replied on Thursday, May 24, 2012 01:56 PM PST 

Mr. hope u will be fine, the school is best option of business in Pakistan but boarding school, because coming time is to hard so parent have no time for his children. i m also retired man. other, goat farming is greatest business in Pakistan profit margin very high and loss very low. i cant agree with above man asif. please do something with your great experience.

Ammad replied on Wednesday, May 3, 2017 02:29 PM PST 

Salam to all.
If anyone is interested to invest in Forex Trading, and will able to invest minimum 5 Lac then i will give 70 to 80 thousand monthly, plus you don’t need to give money to me and my company, your money will be secured in your own bank, just open a foreign currency account i any local bank, and start trading… and you can stop the business whenever you want….I’m from Lahore, For more detail contact me
Ammad:
email:

Aamir replied on Friday, June 29, 2018 02:21 AM PST 

i have 3 million amount and i want earn only 30 40 thousands per month. Any suggestions please
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Khurshid Ahmed replied on Sunday, March 24, 2019 11:55 PM PST 

Mr Ammad, your offer is interesting and seems profitable but you have not given your email address or contact number. Would you post these, please!

Imran Barki replied on Wednesday, March 24, 2021 10:00 AM PST 

Dear I am a retired engineer from Govt. in road & buildings department. I am 69 years old. I want to do some business in lahore with 20 lacs Pl advise me what to do for earning and to keep physically active. Hoping an early suggestion from you. my e-mail is kib
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