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Lahore Real Estate Forum: Property News & Community Talk : ,

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   Advise
Saturday, August 11, 2012 07:28 PM 
Reply: >
Dear CMY and other respected members:
I am living in Dubai and i have elegibility to get loan up to AED 1M (eqv. to PRs.2.5 coror)@ 6.5% p.a. Please advise if it is good to take loan and invest in property in DHA etc.
ua replied on Saturday, August 11, 2012 07:49 PM 

No. You are also taking currency risk. Rupee devaluing is also going to hurt you big time. What you are speculating is that the DHA property that you invest in is going to increase by more than 6.5% in AED. i.e. its rate will double in AED in next 10 years. PKR will depreciate and will be half of its current value against AED by then if current trend continues so you are speculating that in PKR, property value will increase 4 times in next 10 years. If that happens, you will break even with your investment. If it increases more than 4 times, only then you will start to earn profit. If it was with your own ready money instead of a loan, it might have been a different thing but while it is possible that it may prove to be a good investment but keep in mind that you will be taking too big a risk.
ZND replied on Saturday, August 11, 2012 08:28 PM 

@Advice.
Please dont take loan and invest, very risky. Currency deval is going to haunt you, interest will haunt you. If you want to invest use your own money.
adeel replied on Sunday, August 12, 2012 05:25 AM 

don,t commit this blunder
zaheer replied on Sunday, August 12, 2012 05:40 AM 

If u take the loan and construct a house then this is a good idea.Becoz construction cost is increasing day by day and by this way u can get good profit.
flex-01 replied on Sunday, August 12, 2012 06:17 AM 

Apart from the reasons above. suppose, u take a loan today, and after 6 months or i year, your job is gone, then u r in big trouble, as it would be difficult for you to rapy, and the bnak may impse a ban on you to leave UAE.
DollarMan replied on Sunday, August 12, 2012 06:32 AM 

ufff man i think every one above has already given you good advise! but didn't u look at the dhiram trend for the last five years??? due too the rupee devaluation dhiram has done better than property investment in pakistan! now this is without considering the 6.5% loan! with this investment this would seem like a crary investment!
ksa replied on Sunday, August 12, 2012 09:03 AM 

It is very good option but invest in Canada buy a property and rent it out no fear for devaluation (if there is any it will be in your favour)250K $ you can get two nice apartment and you can get rent of 2000$ net into your pocket Now you can pay the loan interest and the remaining is your saving(=35000DHS per year)
A R Khan replied on Sunday, August 12, 2012 11:05 AM 

What kind of person qualifies for a loan of such amount and asks such a question.
It is better he kills himself before taking loan.
ua replied on Sunday, August 12, 2012 05:17 PM 

ksa bhai, in Canada, you can get loan at 3% if you have good credit. Properties there are priced according to that. Buying it with rate of 6.5% does not make for a good investment.
imranshah939 replied on Monday, August 13, 2012 04:40 AM 

never do this kind of mistake i am also a victim of this blunder i thought the same way but the property price increased very slowly while the rupee got devalued at a greater pace. i lost a big amout due to this. please think thousand time before doing this.
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