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Lahore Real Estate Forum: Property News & Community Talk : ,

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   newbie investor
Saturday, September 10, 2016 10:38 PM 
Reply: >
Dear Jameel Mughal sb,
I am waiting for your call to buy a plot for investment as I requested you earlier to guide me since I do not have experience in property but after reading so many posts on this forum I feel that you always give honest advice.
I have a budget around 10 Million and want to have good return for a long term investment upto 3-5 years. I have learned from this forum to either invest in Prism or buy 2 files in DHA Multan.
Kindly advise me whether the right time has come or should i wait more? second where should i invest? if you too think that I should buy in Prism then suggest size of Plot (1 kanal or 10 or 5 marla) and if possible location?
I will always be indebted to you for the worthy advice.
Jameel Mughal® replied on Sunday, September 11, 2016 07:54 AM 

If you tell me your requirements then I may be able to give you Good advice, By requirement I mean You want to make home If Yes in How many years, are you looking for only investment If yes how long,

For Short term Like less than 2 years investment, Most of market will not give significant gains [except few areas] , If You invest for long term then keep in mind that you may have to pass the period of Slump say 2 years then a rally may come hence return will be diluted.

In previous 3 cycles of boom and slump i learned two thing in Slump ready property in underpriced areas give modest returns and properties in pipeline reverse, and In Boom investor tend based futuristic properties give enormous returns and ready properties stand.

For Long term I will again buy Prism 5 merla my Formula is Kanal plots Price should be 2.25 times 5 merla plot not 4 times, This is true every where in developed areas, if You stick to this equation average plot of 5 merla @ 35 3 paid is Cheaper than average one kanal, so either 5 merla is underpriced or Kanal is still overpriced, why I am not buying myself is I think 5M will reverse a bit more [which may or may not happen]
Observer replied on Sunday, September 11, 2016 09:19 AM 

newbie sb. according to mr. jameel 2.25 times of 35 lac makes 78 lac approx. i challenge you to find one kanal in prism in 78.
market does not work according to someone's personal calculations. bhai research yourself and then act. if you will follow others calculation, WON'T GET ANYTHING
Jameel Mughal® replied on Sunday, September 11, 2016 10:21 AM 

Observer these personal Calculations hold true in all areas except prism DHA Phase 5,6,7,8 Valecia, Izmir Johar Town wapda town etc
Reason is simple more Covered area is allowed in 5 merla map than kanal or more buyers in low budget. In raw Land if You can make 100 kanal Plots in a patch then you can make only 250 in 5 merla if Roads are of same width.
Prisim replied on Sunday, September 11, 2016 10:38 AM 

Worse plots of 5 Marla in Prisim are around 35 (3 paid) and similarly you can find worse plot of 1 kanal around 78 (3 paid)
newbie investor replied on Sunday, September 11, 2016 11:27 AM 

thanks for reply, my aims are
1. Around 10 Million investment
2. Purely investment reason, no plan to live
3. Long term at least 5 years
please advise
Habib replied on Sunday, September 11, 2016 11:46 AM 

Newbie,

wait a bit more and invest in prism small plots sectors Like 5 Marla, in 36,37 Now You can get an average location, and in 40 you can get top of range location, I was Looking for A plot in J Block near 777, 3 months back demand was 45 and I offered 42 But in vain, now 3 lines more up was available in 40, I just Called yesterday. 5 Lac Cooling is too much, To me there can't be any better location in J Block. I will advise you should go for 2 such plots.
Other Option can be buying 2 Plots in DHA Town 5 Marla each in about 55 Lac, 5 Marla plot give you much more return and can be sold like candies.

The Observation of 5 Marla price to be about 40 to 50% of Kanal is Correct, in good Locations at maturity two 5 Marla plots can easily be converted to 1 Kanal at same Location. Two 5 M in B Lock phase 5 are 200 to 220 and you can easily hunt one kanal in same Block in 220, In phase 7, 5 Marla with possession is not less than 60 and in same Blocks similar locations kanal is 120 to 130

Message is go for small plots easy sell, less tax less headache and on possession are readily populated.
Multan is also good but with few buts and ifs
Kureshi® replied on Sunday, September 11, 2016 12:09 PM 

Jameel sb and Habib sb, thank you for these enlightening comments. It is very generous of you to share such business secrets with us for free. U are rare species like CMY :)

may Allah bless you with Iman, health and wealth.
Surfer® replied on Sunday, September 11, 2016 12:28 PM 

Seems like placing maximum price for 5 marla & Minimum price for 1 Kanal.
According to me 3, 5 marla's may be equal to One kanal good location of the same phase in DHA.
Yes the positive point of above discussion is bit hastel free to some extant. On the other hand you are loosing one major factor that is Time.
Time can change your priorties & Choices.
HassanHC® replied on Sunday, September 11, 2016 01:09 PM 

Jameel Saab and Habib Saab

Wapda town 5 Marla 60 lacs so 60 lacs times 2.2= 134 lacs. Avg Kanal plot 2 crore and good blocks 2.5 crore

DHA RAHBAR second example avg 5 Marla 50 lacs so 50 times 2 = 100 lacs. Avg kanal is 160 lacs.

DHA TOWN avg 5 Marla 55 lacs and 55 times 2 = 110 lacs. That is over there avg price of 10 Marla i.e around 100 lacs

It means this formula does not hold true everywhere. PHASE 8 this formula also gets busted.

Habib Saab in this slump you are also hunting in prism. Good sign for PRISM.
Habib replied on Sunday, September 11, 2016 02:22 PM 

Hassan sahib all rules don't hold true every where
Wapda Town Phase 1 G2,3,4 all average Plots 70 all very near nallah same Location Kanal in 150 F1,H1,H2,H3,H4, and Bit away in J1J2J3 170 70X2.25= 157

you are Comparing DHA Rahber Phase 1 Kanal with DHA Rahber phase 2, 5 Marla In Phase 2 no Kanals Phase 1 is infront of Valencia and Phase 2 is infront of IEP

DHA Town Kanal is 115,118,130,108 Today advertised , Don't Buy 10 M in 100,
Prism 5 Marla On J side have Potential and Currently under Pressure due to small investors that true if I get Good Location in Upper Cutting 37,38 I will get. As these will short in supply.
irfan292 replied on Sunday, September 11, 2016 04:01 PM 

I wonder if anyone here considers the fact that too many investors in 5 marla plots tend to increase the prices of 5 marla plots too much and real occupiers of these plots who build houses to live here are relatively lower middle class "sufaid posh" people who suffer at the hands of the investor.
If ethics plays any role, rich investors should avoid investing in 5 marla and 10 marla plots.
User_6006® replied on Sunday, September 11, 2016 05:00 PM 

Habib sb sorry to say you are not updated anymore with wapda town , iep seca and valencia prices , hassan hc is right about wapda town prices latest is h sector near nallh where in 2012 kanal was under 50 now touched 110 plus , e1 kanal hit 220 j1,k1 average plot 180 plus and sorry to say j2,j3 always meant for smaller plots if there are kanal in very low in no, main d2 etc near 3.5 crore and still it increasing ave
newbie investor replied on Monday, September 12, 2016 02:57 AM 

Thank you very much for your feedback specially Habib sb, Hassan sb, surfer and jameel sb; for such a nice and thorough feedback. I am really grateful to all of you for such enlightening and sincere comments. Wish u all a healthy and happy life and EID MUBARAK.
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