Dear all brothers,
I worked abroad for 10 years and now settled in Pakistan. I have saved Rs. 60 lacs which is my hard earned life money. I want to invest in a place from where I could get some monthly return to meet the house expenses. I have option either to invest in 1, NSS (although some people say it is interest, but guaranteed profit each month),2, Meezan Bank, 3, BankIslami, 4, any good mutual fund.
If I invest in NSS,Meezan,Islami Bank, I can get at least Rs. 50000 pm, however, I am also thinking that after 5 years there will be devaluation of my amount. Some people suggest to invest in stock market only either in big companies like OGDC, PPL, MCB, NBP, PTCL etc. etc. or in mutual fund. As per them in this way I can get some dividend each year and amount will also appreciate. Can I ask from the experts who have practical experience to give their sincere advice which option should I take to invest and get monthly income.
I cannot go at all for property or in any business and even do not want to tell to anyone about this issue as nowadays nobody is taking care of anyone except to get the money from overseas.
Thanks for your understanding and your comments.
Regards
AD replied on Tuesday, May 18, 2010 08:48 AM
I am almost in the same situation and here is what my viewpoint on the options that you have mentioned.
- Banks and National Savings etc. are Interest/Ribaa/Sood. So avoid them.
- Stock Market is too risky as this is the only money you have got. So not a good option and no guaranteed return.
- Mutual Funds are mostly tied with stock market performance. But even those that are not tied with stock market, do not guarantee you will get a regular monthly income
Apologies that I cannot offer yon an alternate as I am also looking for one.
. |
AD replied on Tuesday, May 18, 2010 08:56 AM
Further to my above-mentioned comments, the one option that I am considering (though you have mentioned in your email that you are not interested in property related things) that buy a small plot in Islamabad...G13 or E11 and build a two storey house and then rent it out. In Islamabad, you should be able to get a 30x60 or 25x40 size plot in around 30-35 and then spend the remaining 25-30 on the construction. These two portions will earn you a regular monthly income of at least 40,000. It will be completely Halaal. Also, the value of the property will go up every year to beat the inflation. |
Kamran replied on Tuesday, May 18, 2010 10:54 AM
I would suggest, nuy a shop in a good mall. you can get a shop in 30-40 lacs, than spend 5-10 lacs for arrangement and goods. Inshallah, it will give you good income and halal rizk. loose fabric is one of the option that you need many people to work for you and its in high demand in ladies. |
AD replied on Tuesday, May 18, 2010 11:12 AM
Brother Iqbal
All that you have mentioned in your recent post is absolutely correct and this is the downside. And this happens only in Pakistan. Elsewhere, the tenant has to return the house in the same condition he took or pay for repairs. Thats why people use accommodation carefully. I am also not in Pakistan and had paid few hundred dollars to landlord when I vacated one of my rented apartments because my daughters draw few lines on the walls!!! But in Pakistan, tenant just destroy things.
But I still believe its better than Interest/Sood from Banks etc. No bank in the world is Islamic. They just change the terminology.
The other option is to buy a small apartment in Dubai and rent it out. You can get very good return. I have a studio apartment in Dubai that is giving me good yearly income.
One other option is buy a shop in the recently constructed Business Bay in DHA Islamabad. On an investment of 30-35 lacs, there is a guaranteed monthly income of 17,0000-20,000 (one year advance).
. |
Zulafqar replied on Tuesday, May 18, 2010 12:21 PM
Iqbal Shahib,
I'm also in the same boat as you and in my opinion, diversification will be better in this situation. You can fix some amount in any Islamic Bank (sood free), while some amount can also be invested in property, which can be rented. You can also invest some amount in any good mutual fund. Diversification about various asset classes is the best way, in my opinion.
This is really tough stage and me too working on it. Please do share your decision which you'll make after completing your research.
Zulafqar |
DN replied on Tuesday, May 18, 2010 02:48 PM
Dear Iqbal/AD
By reading the above post,it seems that overseas pakistanis are all in the same boat.I have through all these phases.I think the best option is a shop in a good commerical plaza,that offers return.Follow a simple formula,For every 1 lac you should get 500-600Rs as a return.Avoid going to banks/share.National Saving Certificate is an option,but it does not seems right from the religious point of view.I think its halal for elderly people who cannot work anymore and have invested there pension money for running there life.Young people who work should avoid it.
Property or a house is a good option if someone is there to look after it and should be on the tennants head,atleast once a month.You can get good and bad people both.Plus residential property requires maintaince,please dont forget the property tax ,its equal to 2 1/2 months rent.Commerical property is the best.I dont know about dubai/middle east,here in europe property and rental have all gone very low.
Thanks |
Like_DHA replied on Tuesday, May 18, 2010 03:23 PM
Hi,
the idea of a SECURE income does not exist, you have to take risks, so Banks should be out of question, a business will return more than house, and more secure as tenants cause many problems, (I have been through this too)...small business still has a lot of potential, target population-related matters, a good book shoop, food stuff, pharmaceutical,,,,but you ought to have natural interest in that and study it well before jumping in...You can do something related to what you have been doing in last 10 years...You dont need time to learn that... |
Iqbal replied on Tuesday, May 18, 2010 04:19 PM
Dear DN,
Your idea to buy shop for rent is not worth. The reason is if you buy shop in the best plaza in Lahore like Siddiq Centre with price of 30 lacs, you cannot get rent of even 15000. If you visit on Mez floor you will find every shop for sale with same price and for rent max. 10,000. So I do not think it is good idea. My friend bought shop in Mez floor and emptry since 6 yrs. Realy nobody has given any solution and option for overseas pakistano who earned money and now are looking to invest to get good return without any risk. They do not have even experience of business so mostly have lost the money by doing business with their friends. In Pakistan you cannot trust even on your brother, so your money should be yours only, you may help others but others will never help you that is the experience which I gained after coming to Pakistan. One man who works abroad and support to family of 8 members, when he comes back, 8 cannot support to him. For those who are over 50 years and have no business experience, the best option is only to put in any Islami bank and take the profit monthly which is not interest as per Moulanas of many Jamats. I have contacted with Meezan for their MAC and BankIslami but have not yet decided. As life is becoming more expensive in Pakistan, so people are looking some profit to survive.
Anybody has any option should be mentioned to benefit for others.
Regards |
imran replied on Tuesday, May 18, 2010 07:02 PM
HI
i was in the same situation 3 years before, but now I buy a plot and build a house and just sell it . In this way , it s give me a resonable income for one year. It s work for me i already do it 2 times .
Regards |
Be Positive replied on Tuesday, May 18, 2010 08:11 PM
Dear All. I respect all the viewer comments, Now a day Life is So tuff and it’s changed a lot. No one is Honest and Loyal to you. Where ever you invest ,you will loss and risky for the expatriates. I read so many time in this form, every one against to put a Money in any Islamic Bank, because it’s Haram.Any one Explain the meaning of “Haram” in our Culture. Everyone paying money in different place to do a legal Work in “Back” door, Is that “Haram” or what? Living stranded is So expensive, How could you manage in little budget. But if you but a Money in Islamic Bank, you will double money. “Haram” or “Halal” is bank responsibility. I am asking One Simple Question everyone in this Form. “How many Peoples Don’t have Bank Account” . I am Sure everyone is Using banking facilities Is this Not a Haram Way. If any one Lost his Hard Earn Money in Business and in any other way, Who will help Him? Giving Comment are Veryyyyyyyyyy Easy, Please be Practical. Please Please think in Positive way. Don’t be hyper in this kind of issue. May Allah Safe us. Regards to All. |
mohammad imran khan replied on Wednesday, May 19, 2010 12:07 AM
we are a bunch of confused nation, in times of ISLAM, when there was hard times, some laws were suspended,when times were good there was no one eligible for taking zakat, now the times are very difficult for most of people, and those who have money are too busy, so brother decide carefully , now the amount you have is not much. and can be lost easily.
i lost almost 1 crore , when i invested in ajman real estate and not put in bank thinking this was haram. now is there any one to recoup my loss. that was my only hard earned money. Investing in islamic bank and encouraging them to get to the right way to conduct halal business is our responsibility as lot of good muslim shy away, and invest in business where they lose. Well some one will say banks can collapse , so can the world. |
overseas wisher replied on Wednesday, May 19, 2010 01:44 AM
Buy a shop at the right place like inside Chorian bazaar liberty market where all the ladies stuff is and where all the rich ladies shop.I bet you you won't be able to find a shop there less than 70 lakh. |
Adnan Akbar replied on Wednesday, May 19, 2010 04:55 AM
Gentlemen
As-salamalykum wa rahmatullah wa barakathau. I am pleased to see that so many Pakistani brothers are getting this awarness of Islamic Finance and investment options. I am an Islamic Investment Banker based in Bahrain. My suggestion to brother Iqbal is to diversify your portfoilo with a mix of alternative investments. You can buy a file in 9/10 DHA Lahore, invest a portion in Islamic Certificate of Deposits in any Islamic Bank with longer tenor, convert some funds into UK Pound sterling/USD/EURO and investment in Foreign CD's with any islamic bank. May allah subhan wa tala help you with your pure intentions. Barakallah hu feee. |
Irfan replied on Wednesday, May 19, 2010 05:17 AM
@Iqbal divide your money and spend multiple places for getting max profit etc ...
Let say I have 60 lac ...
1. I deposit 25lac in (NSS or Meezan Bank ) and get monthly profit around 25k
2. If I have my own single story home (10 marla or 1 kanal) then convert into double story (with budget 20lac) and give one portion to rent and monthly income around 15k
Or
I already have small double story home then sell and add 20 lac and get little big double story home so can rent one portion..
So far total spending : 45 lac
and total monthly income: 45k which is reasonable for average size family.
3. Spend reaming 15lac in property preferably in Govt scheme (CDA/LDA/KDA etc ) for long term ..... Also try to buy as original alloty using balloting etc
Even in bad conditions like we have nowadays after 5~7 years property give of all Govt scheme will be more then double. |
Aamir replied on Wednesday, May 19, 2010 05:58 AM
The best possible solution is given by Mr AD. Buy a small plot in E-11 Islamabad, construct a house and rent it out. This whole process, however essentally requires your physical prsence in Islamabd for about 5-6 months. If you can do that its the best option otherwise put your money in Bank/stock etc. |
Farhan replied on Wednesday, May 19, 2010 09:04 AM
In my little bit of research meezan bank is not intrest, as they are doing islamic banking, which is also supported by religious scholars and schools, so you can consider that option as well. |
