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A Moral / Ethical Issue,

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   Irfan292
Tuesday, March 22, 2016 05:46 AM 
Reply: >
I want to point out an ethical issue in property business. Property is a commodity and a need of the people. When a rich man buys a lot of 5 marla plots and hoards it for a few years till the prices rise due to shortage, the poor who need a roof over their head suffer.



It can be seen that price of smaller plots are higher (price/marla) in the initial phases of development but become much lower when most houses have been built there and investors leave the area and attack another new society.



Rich investors should never invest in 5 marla and even 10 marla plots in middle range societies. Invest in 1 kanal and above where only rich men play and the poor dont suffer.
Mustafa replied on Tuesday, March 22, 2016 02:42 PM 

You mean large combined families who live in 1-kanal with 15-20 members should suffer at the expense of small familes of 5 who live in 5 marla plots. The size of a house does not make the dwellers rich as large families of many brothers often live together to save on costs. Your concept of ethics in property is flawed, either advice investors not to invest in property at all or forget about ethics as you need some classes on ethics in a broader context.
Mustafa replied on Tuesday, March 22, 2016 02:42 PM 

You mean large combined families who live in 1-kanal with 15-20 members should suffer at the expense of small familes of 5 who live in 5 marla plots. The size of a house does not make the dwellers rich as large families of many brothers often live together to save on costs. Your concept of ethics in property is flawed, either advice investors not to invest in property at all or forget about ethics as you need some classes on ethics in a broader context.
Haroon replied on Tuesday, March 22, 2016 04:58 PM 

Well, the short answer is capitalism does not care about class differences.

Also, who are you trying to preach? If these so-called property investors were that ethical, they would be investing with businesses, entrepreneurs, and start-ups, so that the economy actually grows and jobs are created. Instead, they just sit on their bottoms, and just move money around creating artificial hikes in property prices from one society to the next.

It's the outcome of illiteracy and laziness that "investing" in land is perhaps the most profitable business for masses, and constructing roads and fly overs for politicians.

Sad state of affairs to tell you the truth.
Dude replied on Wednesday, March 23, 2016 03:37 AM 

@Haroon. Someone rightly said, it is better to keep quiet and look like a fool rather than talking and confirming it. You mean, real estate is not a business, people involved in it don't sweat in management of its affairs, it does'nt provide job opportunities to people, and it has no role in growth of economy. If you really think so, sorry to say but it is true, you have no idea about this vast field. Your ignorance is not real estate's fault. Regarding ethics, are you sure, you are not the beneficiary of non ethical means ?
KureshiŪ replied on Wednesday, March 23, 2016 07:25 AM 

If you all hate so much about property , don't wasteel your time blogging here.

Investment in property is a business involving research, taking calculating risk. Please do not insult investorso and property dealers. Not every one is a gamer like every businessman is a saint.
KureshiŪ replied on Wednesday, March 23, 2016 07:28 AM 

If you all hate so much about property , don't waste your precious time blogging here. Go somewhere else and start a business of involve yourselves in some "real start up" for three sake of humanity; not for your own good.

Investment in property is a business involving research, taking calculating risk. Please do not insult investorso and property dealers. Not every one is a gamer like every businessman is a saint.

I request to pay Respect property business and professionals.
KureshiŪ replied on Wednesday, March 23, 2016 07:30 AM 

If you all hate so much about property , don't waste your precious time blogging here. Go somewhere else and start a business of involve yourselves in some "real start up" for three sake of humanity; not for your own good.

Investment in property is a business involving research, taking calculating risk. Please do not insult investorso and property dealers. Not every one is a gamer like every businessman is a saint.

I request to pay Respect property business and professionals.
Decent Friend replied on Wednesday, March 23, 2016 09:56 AM 

@Irfan; Very good and logical point to think on.I think its more of "easy money approach" in our society rather than ethical issue.

@Haroon; Perhaps you nailed it perfectly. Fully agree with you

@Other fellows: just to share practical example: Back in 2008~2010, when china's economy sky rocketing, investors did same thing in Beijing i.e. invest in real estate which caused property prices also sky rocketing. It made middle class and deserving people to suffer a lot. Then local administration acted with two main steps.
1) One person can't hold more than one unit/plot/land piece for housing in his/her name.
2) Land allotted to investors/companies has to be built on within specified time or otherwise it will be revoked and money seized in Govt name.
These two simple actions pulled down the prices and middle working class taken a breath of ease.
WE, THE INVESTORS, buy many plots, sit like duck on it and keep waiting for prices to grow. The land stay barren, no crops on it and pushing people to relocate other areas from this area coz they are poor. Dilemma is that other areas not developed and they end up living in miserable conditions again. Pb Minister for Housing Mr Iqbal has highlighted same issue few days back in a meeting & its fact we are losing fertile land very quickly in this mushroom growth of HS's.
Mustafa replied on Wednesday, March 23, 2016 10:32 AM 

It is impossible to compare what happens in China and use those policies in Pakistan as China is transitioning from communism to market-based economy, while Pakistan has no plans to go back towards nationalisation or communist policies. As prices increase, supply increases and eventually things balance out. We need to understand that prices did not increase for 8 years and this correction with inflation was inevitable and it has been observed everywhere. You can't expect investors to suffer for 8 years and then put them back into suffering by changing policies when they reap benefits. The best solution for affordable housing is not to cut the supply or demand for plots, but to create affordable housing units such as flats for middle class. This is the stage we are entering in Lahore in the coming years, just in accordance with the model already in use in Karachi. Nobody needs to suffer, everybody gets what they pay for in the end and affordable flats should be created by government without destroying investors.
Habib replied on Thursday, March 24, 2016 03:50 AM 

I understand the point of Irfan, there issue is that ivestor go for thing which increase in value, if Kanal Plot is 20 Lac today , 20 Lac after 5 years people will not invest in that.
Investment in property makes difficult for low income group to get housing. However if this investment goes to commodities like food, it will be not reachable for poor and they will die of hunger. Such a trend was seen in 2008 in Rice crop and Price increase to almost 3 times in one year, even today price is almost sane as that level.
However if investment is made in manufacturing, factories and agriculture more jobs will be created and commodities produced by these units will be cheaper. Still last option does not look good for overseas in Paksiatn.
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