Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Need Help to Understand,

(57242)
   A. Khan
Saturday, March 13, 2010 11:16 AM 
Reply: >
Assalam-O-Alikum All,

Please CMY or tohers help me understanding the DHA VIII Advertisement.

1. If I apply through balloting -- one kanal will cost me 55 Lac ( If I successful)

2. If I buy an existing allocation file at the market rate say 37 lac + developmet 12 lac total will be 49 lac.

I option 2 , I am sure I got a file and will get a plot after balloting and still cheaper than DHA offer.

Please help me understanding this!! Am I understanding it worng, Really appreciate.

Regards,
PROGRESS replied on Saturday, March 13, 2010 11:45 AM 

Dear Khan

In option one payment in three years installments IF you get a plot.

In option two 37.5(file)+3(transfer)+12(devp) so total will be 52 lac and a one time payment of around 41 lac and a definite chance to get a plot.
Jameel replied on Saturday, March 13, 2010 11:52 AM 

Yes it is right But you are not taking into account 275000 Transfer fees and commission, Like this plot will cost about 50 Lac. ie only about 5 Lac cheap.
Most are bookers are taking chance, and using guess work Like I have money for one Plot but I Book 10 plots. Each is costing me 55 each. After ballot 5 Plots are average, 2 are very good and 2 are bad one is triangle. Good plot Goes for 70 I paid only 5 and got 20, Average Plots also fetch average price of 58 Lac, I paid 5 for each and got 8 In Bad plots I lose 30 Lac in total.
In other words it is all guess work most of Bookers on Installments think that they will pay only few lacs and will get good Profit. Some times it works. Mostly you are stuck. But it is nature of People to take Chance not all can do like it.
Pardesi, Jeddah replied on Saturday, March 13, 2010 12:07 PM 

At present, market price is 3.75m against DHA price of Rs. 4.5m; almost 17% loss from the DHA price & is expected to come down after the ballot.

Accordingly ... if successful in ballot, the market rate of the file will be less than Rs. 450,000 (first instalment) by atleat 17%, if not more than that (processing fee & membership cost cannot be recovered from the maket). Now, count the additional factors like location, economy , pace of development & other opportunities available in the market, depending upon the above analysis you can well imagine what would be the price of bad located plot. Now judgment is yours whether to apply for balot or not...?

After the ballot there will be approx. more than 5 to 7,000 files will be available in the market & you will have both options (with or without instalments) for the location of your choice.
friendly advice replied on Saturday, March 13, 2010 12:13 PM 

I believe and Mr. CMY sahib has also confirmed that development charges are Rs. 10 lacs!

p.s. phase 8 Files may fall further as file holders may want to get out before the ballot and thus not have to pay development charges etc.In any case file holders are a different class of investors.

I personally believe dha lahore phase 6 and phase 7 offer more potential as the map of dha phase 8 leaves much to be desired. Besides we dont even know what the odds are of getting a plot in the ballot since dha lahore has very cleverly not disclosed that information.

After the file holders(about 3000) and the military quota (1000) I personally feel very few plots will be left for the applicants!
CMY replied on Sunday, March 14, 2010 06:46 AM 

DHA 8 plot of one kanal on installment is Rs 45 lacs + development charges 10 lacs + DHA Membership fee 23000 + 5500 Processing fee. This your net cost for plot on installments. You will pay most part in installments for installments plot. You may or may note get a plot in ballot. You have Chance to loose 5500 if you dont get a plot in ballot. You have chance to make Rs 5 to 10 lacs on installements plot if you get a plot and its on good location plot. You could loose min 4.5 lacs and even higher amount on second day of ballot if its a weak or bad location plot. There are many villages pockets and 4 graveyard in DHA 8 proper map. Many commercial areas reserved areas in DHA map.Mny plots fcing high tension power lines or near them.Many plot in front of these or near these problem areas will be worth 40 to 45 lacs max including development charges. So in theory you will loose all your down payment immediately after ballot if you have a bad location in ballot. Same way if you get a corner facing park or large road or corner in DHA 8 ballot you could make 5 to 10 lacs on just 4.5 lacs down payment.


DHA 8 proper file is worth 36.35 lacs + Transfer cost is 2.25 lacs + 36000 commission + 10 lacs for development charges.
You could loose upto 7 lacs immediately after ballot if you get a poor or bad location and could gain 13 to 18 lacs if its a good or great location plot.

What I will do If I had a choice to buy on cash or apply on installments?

I will not apply for a plot on installment or proper files plots after looking at map of DHA 8. I will only pply for 2 kanal plots on installments. Because I have much greater chance to get a bad plot for installment plots or proper files plots due to its pockets grave yards commercial buildings high tension line ring road facing plots and many irregular size plots.

I will wait for buying in DHA 8 only after the ballot is held on April 5th. After ballot 100s of worst location plots will flood the market from day one feom very disappointed people at lowest prices. These bad location are extremely hard to sell at any price and my depress the market for 6 months to 1 year for even good location plots in DHA 8 proper. These bad location plots will drive price lower for even good location plots. Not many good plots will come to market for sale but there are always weak hearted or needy people so chance to get good location plot at lower price due to too many bad location plots sale are good.

I will request all website visitor to apply for 2 kanal plot because there not one plot of 2 kanal is on bad location. They all are facing main blvd of DHA 6. I believe price tag after ballot for 2 kanal plots will be arround 140 to 170 lacs. Their current price on 3 years installment is just Rs 140 lacs.

I hope my posts are some help in making a decision for you about what to do next. I dont want to break any hearts but this is new reality after looking a map of DHA ph 8 proper and reading it closely based on DHA 6 or 7 maps past experiance I think DHA 6 will be next leader in entire DHA and not DHA 8 proper as expected by me and most others in past. Normally DHA cleared all pockets by buying them out at very high prices and even moved grave yard to new locations but I give them credit that they showed DHA 8 proper map to public in advance so buyers could make informed decisions and I give credit to DHA for showing all posible pockets on map and not showing plots plots on them this time.

Now its duty of buyers to see what is best for them. We at Lahore Real Estate have tried to make things 100% crystal clear here and always try to give postives and minuses for each deal. No one should be a able to say I did not know plus or minus before applying on installments and buying files on cash.





Ch Mujahid Yasin
03224009967
Habib replied on Sunday, March 14, 2010 08:24 AM 

CMY Golden words, this is 100% fact.
Siddique replied on Sunday, March 14, 2010 10:10 AM 

Sir, CMY kindly analyse the commercial plots in detail of phase viii, before and after balloting.
MJM, Dammam replied on Sunday, March 14, 2010 12:49 PM 

Very nice and logical analysis by CMY Sahib. I have been saying all the way from the date of announcement for DHA 8 ballotting to think twice before falling into installment gimmick (game). Apparently prices are very high and DHA very treacherously is trying to bait the people. Now CMY's changed analysis have transpired that prospective participants must think not twice but hundred times. If anybody wants to purchase small plots, he must wait for ballotting.
>