Dear All, i have a 10 Marla house in Defence Raya phase 6 Lahore,the rental in that area is low, and even the prices of 10 Marla houses are less as compared to houses outside Raya. i was thinking of selling it and buying a studio in Dubai, as i have a loan that i took to buy the 10 Marla house, and since bought,it is vacant due to no kitchen/wardrobes in the house. I recently got the kitchen & the wardrobes made, but if i compare the ROI/rental income in Pakistan vs Dubai, it is still more in Dubai. Kindly advise whats best to do as per your knowledge. Should i keep the 10 Marla house and give it on rent? Rental is 45k-50k PKR. Thankyou in advance.
Umair replied on Tuesday, October 4, 2016 08:09 AM
Your cost of capital exceeds rate of return. Should exit before interest expense eats up all your savings. |
Pakistan® replied on Tuesday, October 4, 2016 08:30 AM
rentals are coming down in dubai too ... already 10% decrease this year
give it another 6 months to see how dubai reacts |
User_19533® replied on Tuesday, October 4, 2016 09:01 AM
Dear Umair, i did not understand what you are tryingto say. Kindly explain :( |
Habib replied on Tuesday, October 4, 2016 09:06 AM
Give us example what you are getting in Dubai at what price what is current rent and what maintenance plus cooling etc. |
User_19533® replied on Tuesday, October 4, 2016 09:31 AM
in Dubai the rent will be atleast around 90k PKR for the same amount of investment. i have no idea about the maintainenece charges/cooling charges. can anyone guide me on it?
will the prices in raya appreciate more? |
Farooq replied on Tuesday, October 4, 2016 02:16 PM
I am thinking of buying a house in Defence Raya. Can anyone update on the construction quality, living conditions, facilities and cost of 10 marla house in Defence Raya.
User_19533@, how much did you pay for the house. |
User_12115® replied on Tuesday, October 4, 2016 02:57 PM
Raya construction quality is better than Askari 10 or 11
Three contractors were given task to build ten marla houses in Raya - two of them were external while houses from TM50+ (old numbering now 285+) were constructed by RAYA themselves as their contractor left pretty early.
I own a house there and have frequent visits there, 35% of 10 marla houses were occupied in last 8 months only and once ten marla occupancy is 90+% - you can expect a price increase in rental and its value.
moreover, raya lacks in commercial which will be handed in 2 two years which may increase the prices. |
Pakistan® replied on Tuesday, October 4, 2016 03:39 PM
maintenance charges minimum is 15 aed per square feet |
Jameel Mughal® replied on Tuesday, October 4, 2016 07:17 PM
Get the average rent of last 10 years, then exclude 33% as maintenance and other cost, Then calculate rental yield, If you was not not able tos stay. You may have to hand over to some maintenance company who will charge about 10% of rent anally.
In Dubai if you are land lord then you are responsible for all maintenance, I am living in Building hge 3 bed plus maid room, Prime location Current rent 125K annual, I am sure the owner is not getting more than 40 K per Flat Profit in pocket, Too Much Leakage of money every one AC, Lift Natoor, his Own Company Exploiting. |
Nabeel® replied on Wednesday, October 5, 2016 07:23 AM
Any views on Icon Valley (next to Bahria Orchard)? 11 Marla house prices seem similar to 10 marla houses in Defence Raya?
Jameel Sb is right - After excluding service charges and real estate management fees, there isn't much left in this scenario of studio. |
Saad Khan replied on Wednesday, October 5, 2016 01:07 PM
Whats the point of high rental yielding if the studio value itself decresing? |
Jameel Mughal® replied on Wednesday, October 5, 2016 04:20 PM
I am in Abu Dhabi, The Building I am living had rents 55 to 60 In years 195 to 2001 [when it was new then there was Slow increase, I came in 2005, at 75K, then slow 5% some years 10% increased now my rent reached 130 [Govt paying] However from new renter they are asking 125. Now it 21 years old but well maintained. Each Floor have only 2 Flats only drawing room is bigger than many 2 bed Flats 18X42 feet.
Every Now and then renter are bother owner, renovation of Kitchen baths etc etc, i am sure owner is not getting much out of it, |
