What is the best option if i want to build a house and rent it out? In terms of capital appreciation and rental value which one is best bahria phase 8 or pwd, police foundation, cbr 1, pakistan town or airport society
Rents may be better in other locations but if you want peace of mind with renters, phase-8 is best.
Also looking into the Pindi's future developments, phase-8 is more attractive in terms of the appreciation as more value additions are coming in BT whereas other societies are likely to have poor upkeep in future if placed beside BT phase-8
Rest Allah Knows All
Abdul Qayyum sb how would you compare bahria phase 1-6 and dha-2 for investment in a house? From rental value as well as from building and selling a house perspective. I have heard from dealers that bahria 1-6 is easier to rent and better returns but selling a house is easier in Dha-2. What do you think? Thank you.
Naveed sir you heard it right but i would suggest you to stay away from this rent saga since rental income can never match the ROI of running business i.e the profit you would earn through selling a house would be far better than the income you would get through a rent…Plus taxes and depreciation of property along with its upkeep makes this renting venture much attractive.
Correction:Plus taxes and depreciation of property along with its upkeep makes this renting venture less attractive*.
Dear Hamad,
Bahria phase8 house in 5 marla category 6.5 to 8 million and rent is 25 to 35k and 7 or 8 marla category 10 to 13 million and rent is 40k to 50 k.
I don't know the prices of PWD but sure prices are high because of access and nearest to Islamabad expressway.
It's all depend on your budget.
I agree with Abdul Qayyum sab that Bahria phase8 is much better than PWD.
Regards
Thank you Saadi_Aquarius sb for the explanation. I understand your point but don’t you think selling a house even a new one is very difficult? How long in your opinion does it take on average to sell a new 10 marla house in Dha or bahria? If it doesn’t sell for sometime then one has also has to spend something to save house condition from deteriorating due to rains etc. While all the time money is also blocked till final sale. What do you think?
Nadeem Ahmed sb pwd has an advantage that over there a house with good location can also be rented to some commercial entity like school etc. Who pay very decent rent. That is not possible to do in Bahria. And as you said location is also better than phase 8.
Naveed sir if you want to go for rental income,then look for some commercial options in dha/bahria/pwd..
You are right that house is difficult to sell but when it gets sold, and your pocket gets filled with bucks, then you forget all worries and khuwari..Sir new house never deteriorates so fast that you have to spend money for its upkeep very soon.
Alternatively you can also work as an investor and utilize your money for selling purchasing of plots but again that is a bit luck dependent business.
Dear Naveed,
No doubt for rental purpose PWD is good as i said depend on your budget.
You can't find good location house in 10 to 13M in PWD.Bahria phase8 with all basic facilities is good option for low budget people.
Regards
Thank you for the feedback Saadi_Aquarius and Nadeem sb.
Sir if you make up your mind for dha or bahria, you can contact me at 03455370978 for best deals.
Saadi Sb
You are very right. Running business can never compete the renting income but there are lot of people who are at retirement and have played their innings. Those ones naturally need some monthly income without doing any pressuring job.
Naveed Sb:
For the capital nearness it was always BT 1-6 but now Islamabad highway being signal free has very much diluted this factor plus the fact that BT 1-6 painful route thru PWD to the highway!
DHA-2 still keeping appreciating so is BT 1-6. Both are in the horse race. DHA-2 will get further boost with world trade center and 1-6 will have the paradise commercial soon and a vey high profile hotel.
for build/sell thing, 1-6 for example in BT phase-2 good location is above 1 crore whereas DHA-2 10 marla it is still less.
I have recently known that in 1-6 there are smell problems from the river dumping site and if you go for 1-6, you must avoid these locations for investment.
A lot of people go for DHA for peace of mind.
If you are only interested in construction bzness then BT phase-8 is nose down, get a plot in overseas-5 now and buckle up for building and reselling. You will In Shaa Allah get at least 15 lacs profit if:
---You build with honesty
---MEET SCHEDULE ON STRICT BASIS.
Thank you Abdul Qayyum sb for the detailed reply. I have about 18 million of capital readily available to start a second stream of income. Though I am not retired yet but it is very much on the horizon so started planning for it. Real estate looks interesting as other businesses very difficult with so many underhand dealings involved. Rental income and house construction seemed like possible options.
Looks like it is not that simple either.
Naveed sb
Although it seems difficult to inspect the hidden parts of a built house but believe me house quality can very well be analyzed by correlating the visible stuff to the hidden one.
You can easily make out, by having a look on plumbing, wood work, electrical quality, tiles etc , about the good or bad intention of the owner/contractor. This is the only business where you could have good bucks with less chance of being involved with the corrupt officials.
The challenging part is forming a team of at least a mason, plumber and a tile fixer.
I am also looking forward to start this business but giving selling headaches to the marketing professionals.
If you target just 15 lacs profit and completion target as 6 months on a 7 marla house, you are in best business.
Here is my bit after having seen my successful friends in this business:
As Saddi sb said, go for a small commercial plaza and sell shops/flats on installments. Get 20% advance and naturally money will be with you unless you get the full payments of the units at transfer time.
But hand over selling pain to the marketing office while you being as owner hidden till transfer time comes with full payment in your pocket
I am starting 2 small plazas at the same time and 2 parties are already ready to market them at commission which will be decided beforehand of course.
Tr
With due respect I will disagree with most of the answers given above
Hamad Sb asked for house to be rented and I think in all of the options above air port housing society is the best for rental value I am saying this by my own experience I am overseas and having couple of houses on rent in AECHS never had any issues but recommend only sector 1,2 and 3 be careful with sector 4 location is excellent near to Islamabad and excellent rental value which has to go up as signal free work at airport chowk is in full swing..visit yourself and decide , Bahria phase 8 etc are very far from Rawalpindi / Islamabad and rental demand is very less ,, Rental values quoted above by Mr Nadeem are totally wrong I know many people are struggling to rent out there houses in phase 8 ,,rest Allah knows better.
Good luck
Shams sb
What about water problems in some blocks in your airport housing society?
In the past it was a decisive factor there!
Airport society could be tagged as good one but in its own class, No comparison at all to BT or DHAs
Shamas sb…Sir there is no match between bahria/dhas and aechs sine the former are the developed at lavish standards with unlimited potential for growth. Plz quote the rental values of aechs here.Secondly the bahria/dha is free of all types of litigation and qabza mafias hold whereas i have heard that there is considerable hold of some influential people in aechs. Plz correct me if i am wrong.
Respectable Qayyum and Saadi sb.
Answer to all the questions is not always DHA or bahria town rest of the city is also not that bad it all depends on ones circumstances like purchasing power, location etc. Of course there is no comparison between Bahria , DHA to other societies like AECHS but you need reasonable income source to stay in such posh societies ,,you have to pay to get those standards its like comparing 2 star hotel with five star hotel but some people are not ready to spend 500 rupee for the cup of tea where same is available for 30 rupee
Saadi sb,
original question is not to compare the societies its about rental income to invest yes rental income is slightly less as compared to DHA or Bahria but investment is also less so in rental comparison its more or less same , I have not heard for any qabza group so no idea about that