Dear Members,
I am looking for a smart and safe investment. Preferably in Johar Town and its neighbouring areas. Not compulsory. Total budget 30 million.
Firstly, I expect appreciation of 13-15% and 5-6% rental per year. Do you think my expectations are realistic ? For short term 1/2 years + long term 3/5 years?
Secondly, I have option of buying 1 property or multiple small properties. Which one would you recommend ?
Thirdly, Residential or commercial ?
For example 3 residential 5-marla house each priced around 1 Crore. Rental income will be 5% and appreciation will be around 10/12%. What do you think?
Or A commercial 7/8 marla plot of 3 Crore . Construction cost 1 Crore (triple story). Investment = 40 million. Rental will be around (2.5 lac) 6/7% and appreciation (not sure). What do you suggest ?
I am open to better options! do contribute your opinion.
Kind Regards
Mirza Awais
Ali replied on Friday, February 22, 2019 09:20 AM
Residential: Not good rental option. Your appreciation estimate is not accurate. Residential units depreciate in price, not appreciate. The maintenance at the end of lease period would partially offset your income because of the way Pakistanis "thinks" of rental house.
Commercial: Always preferred for rental income. But I doubt if you can purchase a 7/8 marla land in 3 crore in an area where you can get 2.5 lac rent. Do reply this post in future if you get such land. I am also looking for similar option. |
Mirza replied on Friday, February 22, 2019 10:21 AM
We can find such rental options. In small sector commercials. Where we can get 7/8% rental. But price appreciation is minimal.
Consider Roads like, college road, PIA road, Faisal town road (near mini-moon market). I think in such places commercials of 10 marla are priced at 4 Crore. |
