Cautious investing
As most discussion here lately has been about how good pakistan property investment is now, I want to point out some negative things that cannot be ignored. Be very careful.
1. the nation's worsening financial situation has already led to dollar run-up upto rs 95 plus. over the next year, dollar could be upto rs 110 or so.
2. the election situation is still unclear. If PPP, with its allies, comes back in power, the market centiment will go very negative. Pakistan already has lost a lot past 5 years and the chance of next 5 years will surely depress property
prices in Pakistan.
3. property tax risk. Several parties, primarily the PTI, has stated that they will levy high property taxes. Chances are high that the large plots - 1 kanal or over are likely to be taxed heavily under their setup, thereby depressing property prices.
4. If nawaz Sharif came to power, DHA's are likely tosuffer especially their new phases. There will mostly major changes in the DHA housing schemes under their next govt.
5. In islamabad, CDA's speed of work is so slow that it could be decades before they even build a single road or sector - the history is front of us while in that time, the rupee can half.
6. If prices grew in the past so and so, does not at all mean that they will do the same. Pakistan turned from a primarily nation into a urban place - such changes are not going to repeat again.
7. Property, as part of a larger portfoleo, may be a reasonable investment. However, a lot is unclear at this time.