So finally a letter for request of submission of the second installment has arrived, yet prices are lower then what we have paid till now.
What are our experts say about this? How is the market looking in near future, I am pretty optimistic that the market for BTK will be spectacular in the long run, but what about now.
Should we keep on paying?
Few more bitter sips i think you have to take , also make sure after lot of installments do not give them any reason to cancel your plot like not submitting installments for long … If you have holding power keep it until things become settle if do not have holding power , sell it instead of living in pain ,make present better . Up to you
Shah is rite,
as soon as people stop paying 3/4 installments, they will cancel the plots and after a fake boom re sell those plots.
Have they assigned the plots yet? I mean plot numbers etc. Do you know where is your plot located on bahria khi map?
What is the deadline for second installment?
@shah: you are so right, it needs time to mature, well i have power to hold it but i just want to see if its really worh keeping. What is the opinion of other experienced members!
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@ Muhammad arshad: Nop, they havent assigned any plot number, and the map seems more like a scetch of how bahria town will have different blocks and parks and all. And also very large number of people have registered so they cant show every plot on map.
Ehsan deadline for second instalment is 7th august.
Thanks Zeeshan
What are the penalties for not paying installments on time?
Aoa to all,
The question asked in this thread is one which has been nagging all BTK investors everyday.i will try to give my understanding of the situation . Since almost 85 percent of plot files are of 5 marla so an upside turn here would result in a gain for majority of BTK investors.So i will limit my understanding to 5 marla. Of course near-possession or possession time increase in the prices is almost certain but in the mean time...
my humble opinion is that the market for Btk might be slow but if you look at the overall market, it will be evident that this issue is currently prevailing in almost all non-possession Real Estate. PML-N govt. Is currently the major contributor to this trend. Those who know PML-N will agree with me that their main interest is in Industrial sector's growth which is understandable given the cadre of the party.(Being a real estate investor if i count on some change in government to bring back investment to real estate; i should not be labelled as a IK ka jiyala :) )
Will the BTK market take an upside turn . I think "YES" . When will it happen... I think hospital and Mosque and Road completion in BTK will be important milestones because of their locations in the current map.however given the number of files available currently , the impact of these developments would be minimum merely due to an overflow of files in the market
An artificial rise can also be expected if M.R starts to buy back the excessive plots which he has thrown into market. However it seems highly unlikely simply because he doesn't need to do it with BTK.
However we should give M.R some time just as we would do if it were DHA or CDA. Again expert comments are required to make a neutral judgememnt regarding the pace of work currently going on in Btk.( https://www.facebook.com/BahriaTownKarachi/photos_stream )
P.S I have seen people making various assumptions regarding BTK which range from "a dead investment" to 2020 being a good year for BTK. Some also say that M.R will leave BTK after its partial completion in approx. 3 years,just as he does with all his ventures.
Since i am not a real estate guru, any opinion based on logical assumptions would be welcome.
@ sohail…More than 85% plots are of 5 marla??..how this project could evolve to a posh locality??..l think bahria will develop larger plots first for marketing purpose and smaller plots holders need to wait longer for possession. …same strategy implemented in BE.
There are chances that they might cut off the 5 marla plots from the main area where bigger plots are located and keep them away at a distance with a probably separate entrance, just like they did in BE. Their initial maps are usually lollipops, i doubt they might change the master plan somewhere in the middle of project, and surprise people, until now there is no numbering of plots and even if they allot numbers it can be changed any time and nobody has the authority to stop them doing so.
@ Million. The figure of 85 % is an average value. Most claim that almost 90 percent of investment in BTK has been through 5 marla files(small investors). These are files and a rough estimate by property dealers say that around 90000 files of BTK are currently in circulation in market.
Every housing society will always claim their product to be a posh society so i will not blame bahria for that. However the fate of 5 marla plots is something very important. Not only for BTK investors but also for general property industry. Cauz most of the money being sucked in BTK is through these 5 marla files.
Hurray to 5 marla files if thats the way it is. Oversupply of files can really damage the market for 5 marla and usually 5 marla’s are bought either by small investors or people who dont have much capital. So that will be a challenge for BTK to come up with some solution to 5 marla. I personally think, BTK will show some price uplift in 2015 if they kept the pace of work to the level they are keeping now. One thing is that majority of people of karachi are real business men, they dont want to keep money stuck at a place and for what they could do nothing unlike people of lahore and islamabad where money is usually from agriculture / land.
@ Imran ... You may be right but i think that any change in the current position or entrance to 5 marla will have minimal effect. Cauz 5 marla is currently placed at the most awkward position as well. The investors for such type are mostly middle class who will not be particularly bothered by a change in entrance position.
@ Zeeshan. Agreed but the investment in real estate comes only when the businesses are not prospering. We have a clear example of PPP's last tenure. So it may be that the current political instability may push businessmen to invest if things go south. Secondly, the population of karachi is more than 2 crore. Given the size of potential buyer's pool, i think 5 marla will pay its dividends provided M.R doesn't back off from timely development of 5 marla.(which is most likely given his previous reputation for BT phase 9 and BE both phases)
@sohail “5 marla is currently placed at the most awkward position”…means 85~90% of the development is at awkward location???..will these small investors are going to pay for the bigger fishes larger plot and heavy and expensive marketing campaign of bahria…bahria metero bus???..etc???
@ Millions$, 5 marla is the best buy in any other society because the price is small and the returns could be great as compared to larger plots where your initial investment is too big.
In the case of BTK, people thought of the same idea and invested heavily in 5 marla resulting in over crowding of this particular category. BTK also played the gamble and gave unchecked amounts of plots to the hungry customers. Rumors quote huge quantities of these plots are floating in the market. It is rightly said by Sohail that population of karachi can become the biggest asset and if Bahria management delivered on time then it can be a game changer.
Can any of the senior members share same type of experience in any other project initiated by Bahria in lahore or pindi, with high volume of plots and how it worked out in terms of price ups and downs.
If they have sold around 90000 and out of that if even 50000 is 5 marla then these are just files not plots.
Bahria can do business on files along with their agents mafia. But actually they might buy back these files at lower price giving loss to the investors after doing their business and ultimately it'll reduce the total number of plots.
In case of Lahore or Rawalpindi they have already assigned the plot numbers with every single plot file, but in case of BTK how come they didn't revealed the plot numbers.
BTK should clarify this.
@ Millions of course that is what is going to happen. You may call it an irony but people who do business will call it a game plan. 5 marla customers are going to pay majority of development funds. And it is quite evident that these funds will be used for 2 purposes:
1) the development of most of the Bahria town(which is desired but only if M.R also develops 5 marla as well.But will he develop 5 marla during this BTK construction spree or no? this is the big question? His history tells us no. But morally he should(who cares about morality in business :) )
2) for the funding of M.R's charitable ventures like IDPs and flyovers etc etc. My point of view is that if you want to do charity you should first complete the job for which you have taken money from thousands of hardworking individuals and then go on spending from your profit on these ventures. He is helping IDPs there but he has no shame in acknowledging that genuine investors of BE 1 , BE 2 and Bahria phase 9 are languishing due to his pious ventures.