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

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   asma
Tuesday, October 20, 2015 04:18 PM 
Reply: >
plz give my remarks about shadab colony adjacent to pak arab housing scheme on ferozpur road. i am going to purchase 5 marla plot here. in pak arab 5 marla plot is 40 to 60 lac and in shadab colony 5 marla plot is 16 to 23. why there is huge price difference?
Jutt replied on Tuesday, October 20, 2015 05:54 PM 

there is security and infrastructure (Colony Roads, Sewerage) issues in shadab colony that is why population like to go pak arab society rathar than colony
jameelmughal replied on Wednesday, October 21, 2015 04:41 AM 

Price Difference is huge Location is Almost same and Infrastructure and resale is Better in Pakarab, In Both societies People are living. It is Upto you if You have Budget issue then Shadab is only Option. Any way Pak arab is also not A Class society. For Investment point of View also shadab is better as it will grow More than Pak arab. However is Less reputed socities Like Shadab you need to be careful about fraud, Get Only Plot which is transferable By Registry and Intial in Patwar Khana. And Get Good Info from Patwar Khana Before Token or Biana.
Also take Into Account these Figures
Shadab colony 5 Merla House 20+ [30 Lac For B Class Construction]= 50
Pak arab House 45+ [30 Lac For B Class Construction]= 75
I mean Construction cost will be same in both, then difference in Houses will be lesser.
Also Someone Quoted you price of Highest priced plots in pakarab
Arshad replied on Wednesday, October 21, 2015 08:01 AM 

In 40-45 lacs you can get a good plot in Pak Arab check E block. But
if you have plan to construct after 2 years better to buy in F1-block(27-30 lacs) as it will be having possession in an year or so.
asma replied on Wednesday, October 21, 2015 11:21 AM 

jameel sb I want to invest 2 million on ground plot. plz suggest me location may b I construct a house there and eat rent of the house. I have already plot in prosm phase 9 5marla on boundary I want sell it now.
jameelmughal replied on Wednesday, October 21, 2015 05:54 PM 

when you are aiming at rent it is always bad idea to Construct house and rent new house. The reason is If you live yourself your hous will still look new after 10 years and if you rent it you cant recognize after 5 years. The reason is harsh use and lack of in time management.
People who are looking for for renting houses they buy old bulit houses with sold Construction and then make its portions. Mostly these houses are available on Plot Price, area being old gives a lot of rent as compared to new area. i give you an example. A house Bought by my relative
In BOR near Johar Town there are 3.5 Merla houses Most are double story roads are wide,Location is Prime. These were built in 2000 and Initial Price was 9 to 11 Lac. Now these Houses are available 45 to 55 Lacs Most need renovation. The possible rent is minimum 20+15=35, This best Cost to rent ratio I know in Lahore and Capital gain is also there. Similarly 5 merla houses in Johar Town, Faisal town and Allama Iqbal town also yield maximum rent even more than DHA. Because of central Location
Hassan C replied on Wednesday, October 21, 2015 08:21 PM 

Jameel sahib very good analysis. This has helped some of my perceptions as I wanted to build house for rental purposes when I will resettle in Pak from Overseas.

In summary you are saying if want to get rental income buy houses in mature societies at or near cost of land you will get the house and can take rent, As land value will go up price will go up.

But if we buy new plot and make a new house, every year structure cost will be depreciated and eventually structure will not have much value in 10 years and only land value we will get when will sale the rental house.

Based on that may be amount of rent taken in 10 years may be less then the depreciation of the newly made house.
Habib replied on Thursday, October 22, 2015 04:10 AM 

In Pak arab you can easily get a resonable Loction in 40 Lac with Possession and ready for Construction, I dont know which prime location you are talking in 60 Lac
asma replied on Thursday, October 22, 2015 08:23 AM 

thanks a lot jameel sb. your words make my mind clear.sir I have totally 3 million and one file in dha prism phase 9. plz suggest me what I do with this money? I want to buy an old house in decent society.
Visitor replied on Friday, October 23, 2015 02:45 AM 

@jameelmughal: Excellent analysis, it revives the confidence in the forum as there aren't many people here who will give honest opinion. All seem to be inclined to their own benefits.

I would however like to disagree slightly with the idea considering that new localities with potential will eventually gain more weight as they get popular. Plot prices in area increase and that affects the house price. Lets take DHA Rahbar 1 for example, it has possession and one can start constructing now and rent it out, Compared to johar town and iqbal town DHA Rahbar has more potential to grow and same plot that you can get for 25 lac now will probably be 40 lac in a few years so the equation IMHO would be

when constructed 25+30 = 55
in a few years 40+30 = 70 - 10 (wear and tear) = 60

rents also increase with time in new areas.

your thoughts/comments please!
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