Be Tax Filers of stay away from Property
Sorry I have been out of Touch for last few months not because of lack of interest, but because my Point Blank analysis is in clash with others benefit, When market was beating up is Late 2015, I had been warning the people to invest cautiously and my estimate was that full paid average
location plot in Prism should be about 80 Lac, or about 77 K Dollars, Others Believe it or not I have already tapped this opportunity. Details I will disclosed later.
Now Question of today is what is going to happen after imposition of "BAN" on Purchase of Plot worth More than 4 Million value.This is a well known fact that in spite of relief on Taxes on filers most of transactions in real estate are by non filers. It does not necessarily means that all investors had been criminal and and money was through illegal means but there is increasing reluctance of people to declare their money and income. Salary holders are exception and they are also not players in real estate market. My own intuition is that whatever you say, this Generation at least will never comfortably declare their income and assets. Next generation hopefully may change. Govt desperately needs to increase documented economy to continue growth pace and increase GDP.
I personally believe that if this ban Continues real estate will see worst time in decades. In 1999 Musharraf Govt was probing the income sources and it was considering to imposing 100,000 Property tax on more than one Kanal house, The Kanal houses fell to their lowest, in 1n 1995-96 a 10 Merla Double story new House was 28 to 30 Lac in Allama Iqbal Town, in 1999 to 2000
Prices fell to record Low and one Kanal Houses were sold in that price, One of our relative got one kanal single story new House in just 22 Lac.
If this ban is seriously imposed then a free fall in market will be seen the investors will exit and real estate sector may shrink to realistic size.