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TAX ON REAL ESTATE PROPERTY,

(52431)
   PROPERTY DEALER
Sunday, April 12, 2009 09:42 AM 
Reply: >
What will happen if the govt impose tax on realestate property. According to my opinion there can folowing situation.
a) The invester will immediately start selling their plot bcos of tax and no profit prospects in the prevailing market situation.
b) Consequenly, there will be rise in selling but no buying due to prevailing state of affairs in the country, hence, the prices will further come down tremendouly at level of 2001/2002.
c) This lowest prices will attract the genuine buyers to buy plots for their own construction.
d) This buying trend will bring activity in the market.
e) But this time, we the property dealers will not have same speed of deals every day what we have enjoyed earlier.
f) And dealers with solid base and good reputation will survive in the mkt. ANGHOTA CHAP n with bad reputation will vanish which will be good for real estate biz.

Plz give your opinion w/o any prejudice
alpha beta replied on Sunday, April 12, 2009 10:23 AM 

Your own statements (b) and (d) are contradictory. Aren't you acting like a typical property dealer?
MRS.R.S replied on Sunday, April 12, 2009 12:17 PM 

tHE DAYS OF PROPERTY AS INVESTMENT ARE GONE!!!

DUE TO RECESSION, THE DEVELOPMENT WORK WILL NOT KEEP PACE. ONE SHOULD BE PREPARED TO BUY A PLOT AND SLEEP OVER IT
TOO MANY SCHEMES ARE INTRODUCED.
ONLY A FEW PEOPLE ARE IN POSSESSION OF TOO MANY PLOTS, TO AVOID EXCESSIVE TAXATION, ONCE THOSE PLOTS ARE RELEASED THE PROPERTY MARKET WILL FURTHER GO DOWN AND KEEP FALLING TILL MORE EQUITABLE DISTRIBUTION OF LAND/PLOTS.
OF COURSE DUE TO SUB OPTIMAL ACTIVITY, THE PROPERTY DEALERS WILL NOT BE ABLE TO SUSTAIN THEIR EXPENCES AND LEAVE THE MARKET. EVEN THE BIG PROPERTY BUSINESSESS WILL HAVE TO REDUCE COSTS TO STAY AS THERE WILL BE NO PROFITS.
v1s1t0r replied on Sunday, April 12, 2009 02:30 PM 

i don't know wats all this fuss about prices in 2001/2002 ? was every single person in pakistan able to buy a plot & build a house on it in 2001/2002 ? was there prosperity every where in 2001/2002 ? was economy all singing & dancing in 2001/2002? simple answer is....NO ! So wat wud happen if, hypothetically speaking, suddenly prices go back to 2001/2002 level tomorrow ? nothing....but, there wud be a mad-rush of another buying frenzy again....& prices wud soar again ! I can tell u from my observsation, lot of ppl are holding a lot of money at the momemt (including oversear investors as well). Prices go down a bit more...& u'd see lot more investors jumping in & grabbing wat they cud'nt grab last time.

as far as tax on property is concerned, sorry...am not saying it very proudly, but for every single legislation there are 1001 loopholes & way arounds, we don't need to fool ourselves, facts are...facts !

come on guys....don't look back towards 2001/2002 ! look forward !

& by the way, tanvir ahmad u don't have to change ur name/user id to carry on ur scare mongering business, ppl know who u r, anyway !

cheers !
Waqar Latif replied on Monday, April 13, 2009 03:56 AM 

@Property deal a.k.a Proper Analyst or what ever

you are saying this property prices will drop to 2001/2002 rates, it is totally impossible i was thinking to answer you before as well, but couldn't get time for that. Prices will surely drop in the societies like which are miles away, no one is going to live there for 10-15 yrs, but the property like johar town, mustafa town, illama iqbal, wapda, & surrounding will not drop, since a people are going there to live, and still building their house. the only effect will happen to these societies would be like a slight drop, but thinking about you can get 5 marla plot for 10 lac in johar town seems a bit stupid (one of my colleague sold a plot in johar town for this price in 2002).

Ps: i am not here to sell any plot, nor i am a property dealer
Observer replied on Monday, April 13, 2009 06:04 AM 

First of All the tax on property/plot is not yet finalized. The recommendation from CBR is that the following should be brought in tax network in next three years.
1- Plot/Property
2- Capital gain in Stock
3- Agriculture income.

Sine long time all these has not been brought in tax network due to infuencial people although CBR has recommended it many times.This time again it depends that if property investor are still infuencial or not.

In case it is taxed then file buisness will increase and plot business will decrease because it is easy to estimate the price of plot but file price cannot be figured out in real sense.
Pervez khan replied on Monday, April 13, 2009 08:52 AM 

Friends, we all seem to be educated and grown up enough to understand a simple fact that the rise in property prices was artificial and no doubt currently the property business has come to an hault.
govt no matter what is not sleeping they know that people have gained a lot of money in the past few years why would they not impose tax on this easy money.
current prices can only go down or stay the same for atleast two years.
admit the fact WHAT ARTIFICIALLY GOES UP NATURALLY COMES DOWN
TO EVERY ACTION EQUAL AND OPPOSITE REACTION

LETS TALKI BUSINESS IF ANY ONE THINKS THAT PROPERTY WILL GO UP IN NEAR FUTURE I AM WILLING TO BUY ON ANY DEMAND PRICE PROVIDED THE SAME SELLER CAM ARRANGE A SALE AGREEMNT FOR THE FUTURE AT A FAIR APPRECIATION VALUE. CASH PAYMENT FOR THE DEMAND PRICE AND WILLING TO MAKE A SALE AGREEMENT ON 20 % DOWN MAKES SENSE.
GHORA BHI HAZIR MEDAN BHI HAZIR
NAEEM replied on Thursday, January 5, 2012 05:21 AM 

Dear all friends,

Please make efferent,s for peace full and success full protest on 1st feb in front of LDA office johar town pl be there at 10 am and at same time requested to all member to use thair personal links to high light this issue in media and influence lda and govt for salutation . we are the effected people we want our property from lda and from Qabza group from litigation. if any party likes to help us, we will well come but our aim is just get our property for us and our childred.
thanks to all members
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