AOA, I need some advice regarding to my house in Karachi. I have 300 sqyd house off Tariq road on a very good location. Its location is good for both commercial or residential purpose in fact i was getting attractive rent for last 2 years from a company. Its a 3 story house but the construction is old. I tried to sell but due to old construction the offer I get is equal to land price. If I go for construction it will cost me some 7 to 8 million plus at least 8 to 10 months. After that i can sell each portion seprately in good price. My question is should I go for construction or sell the house and invest it some where else. Please advice me.
Thank you
Khalid
Habib replied on Thursday, June 24, 2010 05:54 AM
would you tell in detail why you think house should be demolished, ie
1. Level is much low than street? If so is there any problem of water accumulation in House at rain.
2. Is there any serious problem of Damp
3. Is there any serious leakage of Bath rooms on top floor.
4, Was house made on fist time with good material or by thekedar.
If you opt to demolish house then try to find price of new house in that area with hard bargain . If the money you are getting plus constuction cost is less than new houses available then you my go ahead for demolising it. Otherwise try to find some good contractor to renew the house.
Most of houses with construction 20+ ys are only sold at plot price. |
As replied on Thursday, June 24, 2010 12:43 PM
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As replied on Thursday, June 24, 2010 01:32 PM
Dear Khalid,
Below are my two suggestions, |
As replied on Thursday, June 24, 2010 01:33 PM
1- Get estimated price of each portion after reconstruction and calculate the total estimated selling price of whole building.
Check the profitability, If it is upto ur mark then go for reconstruction.
As per my opinion the profitability shall be min. 10% on total cost.
TOTAL COST will be = A +B + C + D -E |
As replied on Thursday, June 24, 2010 01:47 PM
A = Land Price
B = 7-8 Million (reconstruction cost)
C = Rent that you will loose for 8-9 months (during construction) |
Khalid replied on Thursday, June 24, 2010 06:00 PM
AOA, The house is some 30 years old. The builder offering me 19 to 20 million the most. After construction each floor may sell 11 to 12 million the top floor and ground floor cost more than the first floor, any way the profit may be 5 million a little more or less and the time for construction may be some 8 to 10 months. Still want your advice to go for construction or invest some where else.
still need your advice to go for the construction or invest some where else.
Thank you, |
aslam replied on Friday, June 25, 2010 03:52 AM
just get value of any newly constucted building near your area. this wil give u an idea is it ok or not to do so |
