Aslamoalikum all
I Am overseas Pakistani and in Lahore have a shop in Madina Centre near kalma chock in a newly built plaza the shop is on lower ground floor
Shop is 150 SQ FT
Now shop is ready and I have rental offer of 15 k per month with one lak security deposit
I have no idea if rent is reasonable and how rental market works in Lahore
Please share your thoughts thanks
An overseas pakistani replied on Sunday, November 20, 2011 12:19 PM
As an accountant I can advise you to calculate ROI (return on investment) and ideally it should yield you minimum of 6% to 8%. In case if its less than that then you need to review in detail for many factors.
Regards,
An overseas pakistani |
Irfan replied on Sunday, November 20, 2011 12:43 PM
Dear, do you mean annual ROI?
2000 K investment, 15 K x 12 = 180 K per annuam = 9% ROI.
Please confirm |
An overseas pakistani replied on Sunday, November 20, 2011 12:59 PM
Yes.
9% is a good return. Moreover you will growth in your investment as well with the passage of time, inshallah tala.
Best regards,
An overseas pakistani |
Khan replied on Sunday, November 20, 2011 07:59 PM
I thought you have the take care of the taxes and all other expenses of maintenance and other charges to calculate the rate of return! |
Irfan replied on Monday, November 21, 2011 04:55 AM
Khan, good pointer, being an overseas pakistani have not even thought about taxes.
So if I rent what taxes I have to pay? Thanks |
Sarmad, Sharjah replied on Monday, November 21, 2011 12:01 PM
2.5 month rent annually and donot forget the income tax also if the annual rent fall in come under intax bracket. |
