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

(116594)
   Overseas investor
Wednesday, June 12, 2019 06:00 PM 
Reply: >
CMY sahib ! Your response is much awaited regarding budget disaster on real estate

How will it affect prices in developed
( like phase 6. ) Vs underdevelopment projects like prism
Tahir replied on Wednesday, June 12, 2019 07:04 PM 

Real Estate is Gone with the wind....Forget about your hard earned money remitted and invested. What a bunch of imported IMF team having no stakes in Pakistan!
ashraf replied on Wednesday, June 12, 2019 10:23 PM 

nothing big has happened
Tahir replied on Thursday, June 13, 2019 12:35 AM 

Ab aglay 10 saal property ko hold Kar k rakho.
Enjoy karain. Seat belts baandh lein
Zameen replied on Thursday, June 13, 2019 04:14 AM 

So far everyone is coming up with emotional response. No one has analytically analysed the effect of budget. Like Can anyone tell how much are taxes if I sale prism plot.
Ali replied on Thursday, June 13, 2019 04:15 AM 

It will be a panic situation for real estate market for couple of years. Yes, there will be correction to market because the investors will look for other options. But wait. What other options the investor has? Stocks? Saving certificates?

Remember it's a reality that all the rich people in the world made themselves rich by investing in real estate.

After this "structural reform" of economy, investors have to adjust themselves to the change. It will take time, at least 2-3 years for the change.

The budget is right on time, just before the amnesty scheme ends. There are few options for the investors with non declared assets. Isn't it better to avail the amnesty scheme and continue to enjoy profit in reality?

One has to realize that the proposed taxes are not going to make property a non-profitable investment in the long run. Ask yourself a question. Will you sell your property 20 or 30% lower than current value?

The real problem is the people with black money won't enter the market. But people who already are in, will not want to exit till there is an option for them.

In the long run, property has to grow. Because this is the way the modern world's economy works!
Zulqi replied on Thursday, June 13, 2019 05:53 AM 

It’s been almost 5 years now that property market is down. It was started Ishaq Dar by introducing gain tax on property.
I think the downwards trend is going to continue for another 2 years because:
1. It will take couple of years to bring most of the investors in the tax net. Once everyone is filing tax return then everyone has white money.
2. There won’t be any investment avenue available in or outside the country to park black money. U have to pay tax in order to make it white if u want make an investment.
3. This FATF requirement and once we meet the requirement and Pakistan becomes green in FATF. This will become the way to do business and will become for everyone.
4. Property prices has been holding now. Not going down anymore. We have already lost money in devaluation. I don’t think it is going to further down

Hold your properties. Don’t sell at low prices.

Regards
USA DOC replied on Thursday, June 13, 2019 06:15 AM 

Lots of investment by overseas
They have holding power
They won’t sell existing property but also will not buy new ones
So it will drop foreign remittances
replied on Thursday, June 13, 2019 06:25 AM 

Property business will not be any more a lucrative business for investor. Capital gain tax period increased from 3 years to 10 years. Question is how many filers are in the country and how much increase we can expect in the number of filers per year. So it means people who are non filer will be reluctant to enter in this business now. They will try to find some other areas. Property business will see very slow gain and it will be a very long term investment.
Overseas investor replied on Thursday, June 13, 2019 06:47 AM 

Government needs to lower capital gain tax
That’s all needed
Otherwise no problem
Winner replied on Thursday, June 13, 2019 07:41 AM 

Everyone is worried for their personal interests, we are a selfish nation.
AHMAD HASSAN® replied on Thursday, June 13, 2019 11:02 AM 

My advice to all investors. Buy property not to sell now. Buy property for commercial use. Buy property to rent. Don' put money and wait for increase and do nothing. Use property. Use mind. Commercial property is always the best. Setup a warehouse, use in trading etc. Don't look for overseas money. The living abroad has own problems, there was a time when overseas invest, now their children has grown up, they have all interests in their countries, Yes sometimes they come to attend weddings or meet with old aunty or uncle etc. ME overseas also living an uncertain life. To make money, think of the box now. If you will sell property now, you will be a big looser, a time is very close when Chinees will be looking for the property in Pakistan. That law will pass soo, they have to or we have surrender. Again buy property to use property and if you will buy property to use away from big cities, you will earn more. I will tell explain later that how this will happen. I am posting on this group after many years.
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