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

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   overseas
Monday, December 3, 2012 07:26 AM 
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I bought a plot in DHA Lhr fot PKR.5700,000/- in 2007 when US $ was equal to PKR.60/- Now, after 5 years it is worth PKR.8200,000/- when US $ is = PKR.96/- I have lost instead of gaining some profit in investing in property. Why should people invest in property? Any wise answer please?
MA replied on Monday, December 3, 2012 07:38 AM 

Its an investment with the risk of going down (especialy after adjustement of inflation). 2007 was not a lucky year as the worldwide recession started afterwards and in many parts of the world, peopel are still not able to recover from losses.
RAS, Saudi Arabia replied on Monday, December 3, 2012 07:51 AM 

Now the time has gone to invest in property. People don't have money for their necessaities how they will buy and sell the property of high prices. A particular group who raised property has already got the benefits and is now out of picture but the property prices are still as high as before and I do not think any progress in this line anymore in near future. Property prices are like the story of buying monkeys and after selling monkeys they run away and the people who bought monkeys from them had nothing left but to repent only.

The best thing is to invest in business like small industires similar to the one China has given incentives to its people to open small industires at their homes without any tax and other complications of unnecessary approvals. It is only possible when we have any God fearing government.

We just pray and wait for the good time to come. May Allah Almight give us strong Emaan to believe on Him - Aameen.

Good luck my beloved country.
Wi replied on Monday, December 3, 2012 08:08 AM 

I think it's all about timing
Wi replied on Monday, December 3, 2012 08:36 AM 

I bought Wapda Town 1K plot in 2003 at Rs 1,600,000/= and dollar rate was $= Rs56, so my investment in dollar term was $28571/= (1600000/56).Current price of plot is Rs 7m and dollar rate is $=96, so my latest investment values is $72916/= (7000000/96).

An increase in dollar term by 2.55 times or 255%.

I think it’s all about timing. Overall investment in property is considered good when inflation is everywhere in the world.

Remember property is hedge against inflation.
Khan replied on Monday, December 3, 2012 08:45 AM 

Dear Overseas,

Actually, it is matter of timings and most importantly how do you look different options to invest. For example, I do not evaluate any other option while investing in DHA. During 2010-11, I invested Rs 19.6 million in DHA (83% was invested during Jan-Aug 2012) and now by the grace of Allah the Almighty, its present worth is Rs. 36.1 million and still there is room to grow, In-sha-Allah. I am quit satisfied with investment in DHA.
Khan replied on Monday, December 3, 2012 08:49 AM 

Correction Jan-Aug 2012 = Jan-Aug 2011
Sheikh Ghunaim Ahmed replied on Monday, December 3, 2012 09:24 AM 

Dear Overseas,
You have bought the plot its fine, but look at your present worth or did you evalaue the plot as at today must have gained. any its tangable asset for you. And that is your FX gain/loss, but you have in the shape of land which has always appreciation. or take it to other way around, for instance what about if you had dollar a/c, in that context again you have to make FX gain/loss. So doesn't make big difference my friend. cheerup.
Adnan replied on Monday, December 3, 2012 09:31 AM 

I bought phase 9 file 1 year ago at 14.75 lacs, dollar was 88, now the file is 33 lacs plus, dollar is 96, I gained 17000 dollars, similarly, I bought a plot in X block last year at 34.50 lacs, today is 62 lacs, I gained 25000 dollars plus. Timing has to be perfect. If you buy a ready plot today, its price will go up slowly with inflation and rise in population, which will erode the value in time as Pakistani currency is very unstable and loses value quickly. For example, people who buy phase 9 file today will not make as much money unless they get a super location after ballot. On the other hand, if you buy a plot in NFC 2 today, the price is very low and development work is in full swing, I believe the price will double in two years or less.
Ehtesham replied on Monday, December 3, 2012 09:47 AM 

I also share the same predicament as overseas and reluctant to convert USD to buy a plot/file considering the recent free fall of the rupee.

However, gauging from a medium to long-term perspective, property investment is the right way forward and as rightly said the timing has to be right. Now, if I gain courage to come forward and convert USD to purchase in DHA, what would be the best pick?
rana replied on Monday, December 3, 2012 01:26 PM 

As I understand it, no investment moves up in a straight-line fashion. Folks that are seeing a gain right now may see a loss over a short window and then a gain. One can look at any stock chart with long term upward trends and still notice that there were down windows. One thing is certain that over the long run comprising 10-15 years, real estate should gain in value unless the initial purchase was made at the time of a bubble.
CRT replied on Monday, December 3, 2012 02:58 PM 

I agree with Rana. One more point is regarding timing. For a common man timing is always going to be a guess. Even most experienced cant decide whether a peak has peaked yet and trough has been reached. So my theory is look at value ( not price) and consider real estate a long term option.
MK replied on Monday, December 3, 2012 03:00 PM 

Hope for Marshal Law, currency will get strengthened again and every one will be profited as before.
Commoner replied on Monday, December 3, 2012 05:18 PM 

@MK

It depand on outside support. Without external support, it would be very difficult for amry to control this divided nation. May Allah save our country from another division. First strengthen your country, currency will automatically become strong.
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