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Investment Advise Request,

(99110)
   Qaiser
Friday, April 8, 2016 05:42 AM 
Reply: >
Dear Experts. Please advise to invest Rs 12 Million. I can hold this investment for long term. Which option looks better or suggest any other better option :

1) 01 Kanal Prism Plot in A, C, D, Q or P sectors

2) 01 Kanal Prism Plot in Sector H, E , G or L and 1 Kanal File in DHA Multan

3) Two 5 Marla Plots in DHA Town

4) 01 Kanal Plot in Phase-7

5) 01 Kanal Plot in Phase-7 (around 9 Million ) plus DHA Multan File
Talal replied on Friday, April 8, 2016 06:00 AM 

Don't forget development charges of 20 lacs
Qaiser replied on Friday, April 8, 2016 06:08 AM 

@Talal. Yes, the development charges being spread over 2-3 years would be managed.
Surfer replied on Friday, April 8, 2016 07:00 AM 

Click Option no 1 avoid Multan. If you are able to manage development charges.
EkrarŪ replied on Friday, April 8, 2016 08:03 AM 

If you can hold for more than 5 years, go for Option 1 without any hesitation!!! Try getting a TOP LOCATION plot in prism A,C or D!!!
dubai replied on Friday, April 8, 2016 09:02 AM 

I think go for Dha 9 town two plots...hold for one to two years as appreciation is expected there bcoz of main boulevard, construction activity etc. after having reasonable gains shift to prism.
Qaiser replied on Friday, April 8, 2016 09:33 AM 

@Ekrar. Thanks for your input. Will it be possible if you can share your views on Dubai's comments wherein to buy two DHA Town plots and switching to Prism after materializing gains. I fact, I was also inclined on this strategy but may be missing some thing, therefore you assessment would be valuable. Thanks @ Dubai too.
EkrarŪ replied on Friday, April 8, 2016 10:06 AM 

Dear Qaiser, This is somewhat tricky.

If u live in Pakistan, u can opt for this strategy(told by dubai)...
There are always more chances of gains when u keep switching in properties where the construction activity is about to start!

It is true that 9-Town is expected to increase by 6-8 lac further during current year, BUT what will happen after that?
The cost of SWITCHING from Town to prism at a later stage i.e hassle of paying the dealers, membership fee, CVT, paying something extra for "GOOD" location to lock the deal in 9-town,etc etc may eventually lead u to a lesser profit margin(may be)...

So the question is how much further profit would u earn from 9-Town: may be 12-16 lac?


At the same time, there is a risk that u may not be able to catch a top location plot in prism A, D, C even at 150 once development activity starts in these sectors in full boom(which is highly likely)!
Already top location plots asking price is 125+!
Mustafa replied on Friday, April 8, 2016 10:19 AM 

Its best to invest in DHA Town plots for 2 years. You should be able to buy decent plots for 58 lacs each and sell them around 85 lacs in 2 years. After that shift to Prism or what ever is offering safe and healthy returns. You need to remember that your investments to have lower shortfall risk and DHA Town has that specific property at this moment in time.
EkrarŪ replied on Friday, April 8, 2016 10:30 AM 

Mustafa sb,
even if he buys 9-Town at 60 today n sells at 85 after 2 years(according to your assessment): Profit of 25 lac per 5 marla?...total profit 50 lac

Don't you think, PRISM top location after 2 years(in Sector A/D/C) will be 175+?

THEN WHY GO FOR PAYING DEALERS/MEMBERSHIPS etc etc. ???
Qaiser replied on Friday, April 8, 2016 10:59 AM 

Thanks @ Ekrar and @ Mustafa for your pertinent views. Infact, LRE has given us a platform to have assessments and share views from different perspectives. The follow up points for consideration are:

1) Whether in 2 years time Prism Top locations would be around 175 lacs?

2) Whether, in 2 years time Town 5 Marla would be around 85 lacs?

3) Considering the transfer fee + Membership Fee + Dealer Fee (twice; one for selling and one buying) would be around Rs 240,000. Of course extra the hassle for sure would be on top of that?
EkrarŪ replied on Friday, April 8, 2016 12:16 PM 

Dear Qaiser, TOP LOCATION PRISM plots are usually held by people having STRONG HOLDING POWER....so I doubt you will be able to grab the deal after 2 years even in 200!!!(I told the minimum price as 175+ after 2 years)

On a lighter note: After 5-6 years, u can "SHOW OFF" people that I own a TOP LOCATION PLOT IN PRISM :P, this charisma will not be attached with 9-Town!!!!

Now comes ur decision,as it is ur money n ur risk!!!!
Good luck for future!
Qaiser replied on Friday, April 8, 2016 12:44 PM 

@ Ekrar. Thanks for your valuable input. Just one more opinion. How to do you rate Prism Sector H,G,E, L Vs A,B,C over 5 years investment horizon.
Mustafa replied on Friday, April 8, 2016 12:52 PM 

Dear Ekrar, no offense but i expect Prism plot at 175, after 4 years in good blocks that will be developed first. I am sure things can be different from what we expect today, but DHA Town offers minimal downside risk in a collapse scenario while everybody knows what happens to non-possession plots in bad markets. In good market Prism will gain proportionate to DHA Town, but why take the downside risk when same return is achievable in less risky investment. I would myself invest in Prism after a few years but the existing rates in comparison to Phase 7 add to the downside risk, that i always avoid being a financial analyst as I have seen how markets shift over the past 15 years.
Aa replied on Friday, April 8, 2016 02:54 PM 

I just dont get what investers in 9 town are after. Aray bhai 50-60 lakhsfor 5 marla iss say zyaada kitnee hee jagon pay hain?
Qaiser replied on Friday, April 8, 2016 04:02 PM 

@ Mustafa. Appreciate the scientific / logic based argument.
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