NEUTRAL VIEWS,

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I am reading this forum since yesterday and everyone has something to say. It shows people are panicked and worried about their investment. So am i.

But the way people are trying to deal with this is very immature. Some people are in DENIAL and keep telling themselves that there will be less sellers and more buyers so price can move up. Some people are way too happy with the TAX, not because it will benefit PAKISTAN but their prediction of correction is about to come TRUE, which btw they were telling us for the past one year and rates moved up 100%. Correction based on their views has not come. Correction will be because of unrealistic TAXES on property SALE and PURCHASE. According to them correction will be around 50% ( i do not hold this view ) and price will be more than their first call of correction. ALL in ALL it is just their self satisfaction and they are very open about it on this forum. Almost all of correction lovers are back after a period of few months.

Then there are people who are talking about a common man that he cannot build his house not even 3 marlas etc etc. It looks as if they are dying to give away their properties to the poor man to built their house yet they invest just like any other people and reap benefits.

To provide housing for a poor man is the government JOB and they have taken it further away. It will cost more for the end user to buy a house. As builders will now add CGT, more stamp duty, CVT, WHT as their COST and the COST to buy a house for end user will drastically RISE. On top of that he will again pay CVT STAMP DUTY when the house is transferred in his name.

All around the world properties are out of reach of common people. In first world countries it is out of reach of upper middle class as well. Everyone goes for a mortgage in those countries and over a span of 25 years pay for their house. Not a bad system when housing is out of reach of common people. In Pakistan government can start shariah compliant mortgage or what ever you can call it. This will also help a poor man when he could afford the mortgage and instead of paying for rent all his life he would be saving it in his house or apartment.

Correction even up to extent of 100% will not make it viable for a common man to make a house. it will still cost way more than his earning. ( i am talking about poor man according to this forum )

Trust me common man always finds it difficult to buy a house. Usually after retirement a house is made and their life long dream is fulfilled. You will find example in your surroundings. My grandfather built his house after retirement.

I strongly raise my voice against these unjust TAXES. I want the government to tax me but according to my earning not on the whole lump sum money which i have.

I refuse to let government be partner in my income to the extent of 70%. I am sorry i cannot let government ROB me like this. On 1 Crore sale of plot why should i pay them CGT at face value ? tax me at the difference or income which i generated from sale purchase @ 10% i will be willing to do it. i earn 15 lacs from a plot of 1 crore and give 11.5 lacs to the government ? WHY? i will not let it happen. For this even if i have to hold my property for 5 years i will but will not let government take away my money.

Already government is my partner in my income which i spend everyday to the extent of 25%. If i add on the income tax and property TAX it could move up to 50%. In return i get nothing. I provide for my children's education, medical, security etc etc, which is the governments JOB.

In countries where high taxes are levied you get few things in return. and some how you manage to satisfy yourself against those high taxes. I am unable to satisfy myself against these high taxes in PAKISTAN.

Now i will come to the last point on how to tackle this situation.

At least for me short term investment will be finished unless it is necessary. I will hold my property for longer period of time. As property is not my bread and butter and 70% property which i buy is for long term. Usually up to extent of 3-5 years. for the rest 30% i will be doing nothing until this matter is clear.

I will also take part in raising my voice against these taxes on different forums. Be it legal or protest, i will be part of it.

Right now it a game of wait and see. I cannot offload my holdings as i will be paying same taxes now or after 1 year. so i better stay put and see how things end up and move with the market as market is the best judge of people's sentiment.

NOTE: Stop blaming dealers or black money giants that they hype the market. MARKET is so HUGE that few people cannot hype the market. People who blame others are usually not successful in their lives, they are unable to see their own shortcomings and blame other people for their loss or any negativity in their lives. This is their way for dealing with their own failure.