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Property Advise,

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   Rana_Australia®
Saturday, July 23, 2016 01:14 PM 
Reply: >
Dear Friends ,
I have one plot in Phase 7 which I am selling . The other one in Prism ( facing Golf which I will sell later ).
My Phase 7 plot is being sold at 160 ( plus minus ). Should I reinvest in lahore which is risky because of Ishaq Dar or should I purchase on flat in Sydney CBD ( say 700000 AUD ) . I give 25 % upfront and mortgage rest ? I give the apartment on rent

Please suggest ???

Best Regards
Rana
New replied on Saturday, July 23, 2016 06:19 PM 

I think its safe to buy in australia till the dust settles.
MIT® replied on Saturday, July 23, 2016 07:27 PM 

@Rana: If you run yr math to calculate it is not worth investing in Australian Flat of AUD 700000 by 25% down payment i.e AUD 175000 plus cost/lending fees of the mortgage etc minimum 5% of the price AUD 25250
comes to 201250 x @ 78.00 AUD/PKR is 15697500, and if you are estimating PKR15500000 sales proceeds with tax deductions it will be further reduced. Even going through this hassle, you still owe 75% mortgage on the Flat, therefore in my opinion with all the risks of ifs & buts still investing in Pakistan Real Estate is much better.
User_6006® replied on Saturday, July 23, 2016 07:40 PM 

if your PM not trusted this country how can you , take both plot money in Australia , get a commercial there and rent out
jehanzeb replied on Sunday, July 24, 2016 03:30 AM 

tedt
Flex01® replied on Sunday, July 24, 2016 05:02 AM 

In Australia, u will get the benefit of leverage i.e by paying AUD 175 k, u will own property of 700,000/-

Though u will incur interest expense, but however u will be having equity in each year, by paying part of EMI towards principal repayment. ( i have not accounted for any capital gains in this)

However, as mentioned by Jameel Mughal, Pakistan property has its own capital gains charm.

If i were you, i will diversify to hold at least one property in AUD, if i do not have any RE in Australia.

Jameel Sb:

Pls comment on leveraging and buying a property In Dubai via bank financing. is it worth it in current scenario with low Dubai RE prices? Thanks ( Asking this as nowadays i am confused whether to invest AED 300,000 in Pak RE or In Dubai. Thanks
User_19995® replied on Sunday, July 24, 2016 06:44 AM 

I would say it all depends on your plans in near future.

If you dont want to come to pak any time soon and want to settle completely in aus then take it invest there in time to get max gains.

So but if have setting that you and your family regularly coming to pak or in future you plan to send your kids to pak for any reason than you must be having some sort of house or setting in pak as well.

I know people who are settle in UK 197 and having more property in PAk and still purchasing even their kids hardly visited pak in 30 or 40 years s its all about ur priorities and falimy setting
Nabeel® replied on Sunday, July 24, 2016 11:29 AM 

Some factors:

If you don't already have a property in AUS, it might be a good idea to diversify country risk and invest in AUS if you already have a property in PK. This is especially if you already have permanent residence rights to stay in AUS, unlike us poor folks in the Middle East.

Secondly, due to high levels of immigration, and concentration of jobs in Sydney CBD, rental properties in Sydney CBD should always be in demand in future.

Thirdly, Pakistan property has performed really well over the last couple of years, but at same time it has also been in the doldrums for a certain period. That being said, asset appreciation on property over long term is usually high.

Fourth, for those able to get mortgages its not too bad to let the tenants build your equity for you, but its a more longer term gain and you will not gain much on asset appreciation like Jameel Sb. pointed out.
Jameel Mughal® replied on Sunday, July 24, 2016 08:11 PM 

M Zahid, i agree with you that there are Cycles of activity and in between there is No Growth, that is why I spoke of average 15% Growth
If You take into account the data given above last 5 figures are quarters and average them up and then Make Cumulative Averge you may be astonished to see that Pakistan is Giving Much More returns, If You take into account Currency devaluation in Last 8 years Canadian Dollars Lost almost same value as that of Pak Rupee same is the case with Australian Dollar.
US is Last 9 ys average is still negative No gain rather Loss , Canadian and Australian SO So if you take into account devaluation of their Currency other are far Below

I will welcome some experience of other overseas people lIke in UK France etc At least Abu Dhabi I gave example that prices are flat.

Coming to other Comment of Plums, Other items are equally expensive, 2 years Back i was Looking for Buying a Plot for relative in Mashallh housing Society [C Class area On GT Road after Daroghawala] @ 1.33 Lac per Merla, Due to Lack of His Interest we did Not go as 50% Funds he had to arrange. Now he asked again and Today I confirmed the price have gone to 4 lac per Merla ie 200% Gain in 2 years. This Much gain in Canada and Australia comes in 18 to 20 years
Rana 1 replied on Sunday, July 24, 2016 09:36 PM 

Salam to all,

I am agree with mr. Jameel Mughal.
I am living in Europe and i observed what MashaAllh Pakistan RE gave to people that no one country in whole Europe has given. Even in crises Pak RE rose.
My brother whole world is crying and trying to destroy orher economy, brexit is latest example.
My family bought 2 plots in EME in 2000 with 20 lac and MashAlh now is price for 2 is lac.
Now you see even was slump in 2004 in pak.

Brother, just invest in Pak and sleep freely. After few years Inshalh you will gain most than whole world.

Wasalam
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