What is going to happen ?
What is going to happen?
For Last 2 days there has been excellent contribution by the forum members. Some are panic, some are in denial still, some believe let the
prices come down it will give them chance to grab some property at bargain rates.
Dealers are unhappy too but some think that last one two months there was silence in prism sector and correction may help to match sellers and buyers.
Lets see investor by investor and later sector by sector how the effect will be.
First thing in general the Hype will be Corrected a bit, may be about 15 to 20 % in general .
Biana Investors will still not find difficult to continue working, In Current deals they are middle man and not shown as seller or Buyer even they are reluctant to put their name in witness so they will be still safe, There may be more disputes that they could not sell the property in given biana period and that is usual and there will be some reversal of deals if market goes dull in next 6 months they will be very cautions, Mostly they will grab the property at very low rates or on Fake Biana Papers.
Open File Business may continue for a while, though Govt may take some action as already it is “semi illegal” or there may be more requirements by the Societies to deposit Cash Guarantee that if Transfer is not completed then they will complete themselves. Some small societies can open the option of 3 party biana the office can be a party in biana to keep a copy in file and to mediate [That can a very good loop hole and can help to keep prices stabilized]
File Traders Life will be most difficult, I was also fascinated by this Fair business. The game revolves around the fact the affidavit file are transferred cheaper, they are not sure in time scale and till some legal formalities completed can’t be transferred, The Time to transfer ranges from 1 month to 3 month and sometimes never [In few cases]. Deals are done on nominal token and highly prone to market Fluctuation. End use eg overseas almost never take these
files as transfers can’t be completed in short time. It is cake of only investors sitting in Market who know that these files will be cleared in so many days they sometimes reach even Patwar Khana to make sure that this affidavit is likely to be cleared., Once cleared and Converted to allocation they sell in 3 to 40 Lac Profit depending upon holding power.
End user will the most lucky to enjoy the scenario although they will pay a bit more tax but enjoy buying properties 10,15 Lac Cheaper and finally whole markets should be based on end users.
Which properties will affected more??
All the Properties with more investor ratio will be prone to these changes
Most effect will come on files and Commercials Files as these are highly dependent on Flow of the money and investor ratio is too high, the fall in price will be gradual not like stock.
The Effect on properties in pipeline will be intermediate Like prism, 1/3 should already have reached the end user and 70% still with investor so in coming 12 months gradual correction will be there upto 2 million in average.
In ready properties like DHA 7, 6,8 will also not be immune but will have less effect. DHA 7 was spiking until last week may only be able to consolidate gain or even a bit of reverse like 1 million.
Phase 1 to 5 will hardly be affected but will stop growing for time being.
Looks the Panic will be over in one year time and business will resume as usual , People will find loop holes will Convert their money to white paying some tax, will be used to paying taxes, More schemes will open Loop Holes like open or registered Bianas etc or some revision of these rates will be there by Govt as happened in Past.
Finally I will say real estate is back bone on Country economy no matter Pakistan UK or US. So Govt should have not imposed so many changes so rapidly not know the percussions