CONFUSION ABOUT FEDERAL RATES

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There are many questions connected to new Law and will be practical problems in if not addressed properly

These are many questions Connected to
1. DC Rate was By Govt of Punjab, People were not Fixing it will this abolish altogether why it cant be reformed

2. DC rate is is already about 60% of Market Value in stable areas only in areas with recent gains it is low and that is negligence of Govt not of people.

3. In Hyped Market or Slump period Market are too Dynamic, Moving in weeks Up and Down that is why previously margin was there in DC rate To accommodate bad location and areas just out of Boundary of societies how they can make this mechanism so dynamic,

4. When we Buy a property we make an estimate of buying price, then taxes etc which are Fixed at what stage valuation of property will be done by Tax authorities, Can seller get it fore hand and for How many days it will be valid?

5. Regarding source of white money when we have to prove it? Like I purchased a plot and went to USA how I know at what time FBR will come into action and will send me notice? and how can I present may case staying abroad? Corrupt officials will use this handicap for earning hefty bribe and overseas investment in real estate sector will be discouraged. Will the Govt make it possible to do all these formalities before Purchase.

Looks that people who are implementing this Law or commenting on it, either don't know the basics that these rates are fixed by Govt not people so there is No Provision of under reporting the sale purchase value.
May be it is war between Feral And Provincial Govts and Fedral Govt is Not happy about DC rates, I am not sure may be these rates are too low in other provinces that is why Fedral Govt want to come into action. May be fedral Govt want to hire third party to Fix values not as per DC rate but FEDERAL RATE, If that happen that almost nothing will change in Lahore at least where already DC rate is High. And next month We will be referring to FEDERAL RATE in place of DC rate

I myself believe and real estate agents know that 90% buyers are overseas and have white money. That Balck Mafia which public referring to is Just small fraction or biana Investors who pay 5 Lac on Kacha Biana paper to trade and get money out of deals, I have never seen Any Blackia transferred 100s of Plots in his name legally, Maximum they buy Affidavit file or gamble in Open file business or illegal societies. How they will Escape in this system
How this valuation will help to calculate gains when no documentation of sale deed is registered for Last many years and DC rate was Black bone of System.

Coming days will answer these questions.

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after this heavy taxation, this business is dead atleast for a while. the question is where would the money go instead? there are two types of investors
1. local investors who cannot do active business like setting up a shop or industry or farming etc bcoz of old age or no experience or difficulty of doing business in pakistan due to law and order/ corruption etc. they used to keep money in banks for profit which is already on historic low, so they started investing in properties which is also gone now. stock market is very tricky and not everybodys cup of tea as there is a wide belief that its a risky affair where yu can lose all yur savings overnight.
2. overseas pakistanis who only invested in properties as they cannot set up an active business owing to general dishonesty prevailing in our society. after years of being tricked and looted by BROTHER IN LAWS OR COUSINS overseeing their businessess, overseas ppl now only invest in properties and nowhere else.things are not good in Middle east due to oil crisis, Europe after Brexit and USA due to fear of Trump getting into power.
QUESTION IS WHERE WILL ALL THIS LIQUIDITY GO?

Price Update

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Where has gone the list of price update? What does it indicate? The matter is very serious and it is not about heavy taxation only; I think the buyer has to show that his money is white and he is tax payer/filer; from where would you get such buyers. And the seller has to show from where he had that property. If this is the case there is complete disaster and holders of property would be stuck but for how long? comments please.

new amendment pos and cons

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so practically DC rates were used to calculate taxes now valuer will evaluate according to market which means 5 times more taxes , on other hand people near govt projects whose land used to be grabbed and offered dc rate now wont suffer a lot ,
but how will valuer evaluate who will control market rate , will total mechanism going to change like in pak arab plot is 15 lac per marla while in wapda 10lac merla will SBP correct these things too ,and how they will see certain change in rate in current market , i think govt cant be that much intelligent they just put more taxes so everyone can pay weather its white money or black just by discarding dc rates . this is what it's all about ???

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After removal of DC rate, how government will do the buying for their development projects ? Will they pay market price? It can hit all development projects as the cost will increase many fold.

From today paper Jang

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Property Tax Details

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Dear LRE-Brothers and other experts

How are you all?

Please evaluate near 8c/y/6.

This my fourth time to post this ad and no reply.

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For everyone to understand taxes can someone please roughly calculate the cost of selling 5 marla prism plot at around 35 lac with new government taxes.
Thanks in advance

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Please evaluate 5marla 3087 J prism?

DHA Peshawar

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Dear Friends Aoa ,
Its not that I am an agent of DHA Peshawar but I spoke to army friends and dealers there . The dealers are of the view that whatever taxes are imposed are to be borne by Purchaser and file price increases as per routine . They seemed less bothered by taxes .

Here in Lahore market is too much scared . Its not that simple FBR has no clear cut policy . Very soon there will be a writ in High Court and stay orders ..So no need to panic .AUR AGAR TAXES BHARTE HEIN TO LET THE WHOLE MARKET INCREASE ..I was in Norway some years ago and they have huge taxes still property market was booming . Chill

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Experts, please evaluate 512 Q, 1 kanal prism. Jameel Mughal shb, surfer, habib shb plz help me on this.
Thanks.

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Expert opinion needed from ch yaseen sb on the effect of tax on property,,, golden days of making money are gone ?????

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What is way ahead, dull market or prices increasing with same speed

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Jameel sb.,

Let's see price behaviour in next six months or so, what do you suggest sluggish market or price graph still moving up at 45 degrees !!!

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Jameel sb.,
By cyclical trend are you contemplating that prices in futuristic societies will recede after recent price surge during the last 6 months, or otherwise !!!

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Effects of heavy taxes due revised tax base prices:
1. Price increase will be checked immediately.
2. Expatriates returning to Pakistan on eid holidays will be tentative in investing money in property due to heavy tax structure and its detrimental effects
3. Prices will see downside in next 3 to 6 months, then after wards a decline of 10 to 20 % prices will consolidate at those levels
4. This event of increase in taxes will act as measure of price correction which will provide a launching pad for next price surge in medium term
5. In long term strong properties will gain as resilient fundamental based genuine investment will be attracted at anticipated discounted prices consequent to short term decrease
6. As a by-product this tax increase and declaration of white money based property transactions will expel black money out of reaL estate to a substantial extent hence eliminating the fear of any bubble creation and its subsequent explosion

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Please suggest safe strategy with Rs. 4 mill budget aafter imposition of heavy taxes w.e.f .

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Please suggest safe property investment avenues with budget of Rs. 4 million, specially after imposition of higher taxes w.e.f July 01, 2016.

Plot Investment Advice

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Dear Members,

I am an overseas Pakistani with budget of Rs.150 Lacs kindly advise of good investment opportunities in DHA (Possession).

Thanks,

Ali

Sale of plot

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Dear, I want to sell my plot# DHA Phase 5 Plot # 526 L. Kindly guide me about current market price. Thanks