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dear property experts,

(69909)
Tuesday, January 10, 2012 07:15 AM 

lets do a debate about property prices in next coming 6 to 12 months.as every body knows that pakistani rupee is gatting weak day by day and doller is getting stronger comparitively rupee and gold prices are also getting stronge.mostly in property markete oversease pakistanies invest their money.if currency remains weak and gold price remain high what it will have impact on property markete in next 6 to 12 months.


Muhammad Saad replied on Tuesday, January 10, 2012 10:44 AM 

If currency becomes weak then prices of plots would go high as well but the increase in prices would take longer time then the gold prices, which reacts very quickly to fluctuation of currency value.

Muhammad Saad replied on Tuesday, January 10, 2012 10:50 AM 

I don't know why I am not able to submit the full text that I want to write. Whats the problem :-(

Muhammad Saad replied on Tuesday, January 10, 2012 10:52 AM 

I am not a property expert but let me tell you few things from my experience.

Muhammad Saad replied on Tuesday, January 10, 2012 11:02 AM 

As overseas Pakistani one would not gain much even if the price of the plot go up because your capital would remain the same in foreign currency.

Muhammad Saad replied on Tuesday, January 10, 2012 11:02 AM 

However such increase in plot prices (due to change in currency value) looks good to Pakistani's living in Pakistan because their capital seemed to have gained from original but in reality the inflation would also be high because of change in currency value and you still might have the same buying power even though you have more cash.

Muhammad Saad replied on Tuesday, January 10, 2012 11:03 AM 

This is the reason why sometime cars in Pakistan appreciate instead of getting depreciate. My friend bought a brand new corolla for 6.70 lacs back in 90s and after few years he sold it for 7.25 lacs because the new car at that time was around 9 lacs :-) Same thing happened when my father sold his used corolla for 4.25 lacs which he bought for 3.77 lacs as a used car. I sold my Civic 2004 model to my brother in 2007 for 8.25 lacs (I sold it slightly cheaper) but 2 years later he sold it for 9.85 lacs. Amazing isn't it? Cars appreciate in Pakistan instead of depreciate.

Muhammad Saad replied on Tuesday, January 10, 2012 11:09 AM 

Let me give you another example. I bought one file of DHA Phase 9 back in April 2008 for 21.25 Lacs with transfer charges. At that time riyal was 16.76 which means in riyals it was 1.27 lac riyals. Today Phase 9 price is 23.65 lacs in rupee however riyal is now more than 24 rupees. So according to the currency conversion rate if I sell my file for 30.43 lac rupees, I would still only be getting my original money back in today's price. There are other factors like inflation etc. which I am ignoring to simplify the math.
No for someone living in Pakistan, it might appear a profit of 9.18 lacs but for overseas Pakistani it is just like getting your same money back in today's currency rates. The file price has to go more than 30.42 lacs in order to be considered profitable.

Muhammad Saad replied on Tuesday, January 10, 2012 11:18 AM 

So questions are

Q1. Did I make right decision in buying DHA phase 9 file.
Q2. Would I buy it again?

Muhammad Saad replied on Tuesday, January 10, 2012 11:22 AM 

A1. Yes, I made the right decision.
A2. Yes, and I did bought a plot after that.

Muhammad Saad replied on Tuesday, January 10, 2012 11:25 AM 

A better way to counter inflation and currency rate changes.

Muhammad Saad replied on Tuesday, January 10, 2012 11:27 AM 

People who don't want foreign nationalities and still considering Pakistan as their home would continue to invest in plots for profit or making their dream house. Now more and more Pakistani's are going abroad so property market should get hot. There are no safe alternative for overseas Pakistani if they want to invest in Pakistan. Yes they can invest in gold and silver but they can do it anywhere in the world but for property they consider Pakistan being the homeland.

Muhammad Saad replied on Tuesday, January 10, 2012 11:30 AM 

Another option is doing your own work but it is not possible for me at this point in time.

Raheel replied on Tuesday, January 10, 2012 11:44 AM 

There is no correlation between USD, Gold and Plot prices. Plot prices depends upon simple rule Demand and supply.
where as Dollars depends upon internation market like consumer banking, Imports and exports, Manufacturing................ Just a quick refernce last month consumer banking budget was 1 billion USD against actual 1.5 billion USD.............
similar with the gold factors as well Its really very difficult to write evrey thing here.

Conclusion: No correlation between among three.

Muhammad replied on Tuesday, January 10, 2012 05:07 PM 

Muhammad Saad sahib thanks for your input and examples. I am a oversees Paksitani as well and thinking about return back in Pakistan. What do you think is safe place to invest and have regualar income.

Thanks
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