Dear experts,
I am a salaried person with low one-off budget. However i can manage to pay quarterly installments of btk plots of upto 500sqy comfortably.
I have one btk 125sqy old file. Plz advise:
1 – should i buy one more 125sqy file and keep till possession? Or
2 – sell out this very file and buy a 500 old file jointly with a close friend (in btk, either of us will be the owner. Our share in plot will be covered through an agreement/stamp paper)
3 – your projected market value of 125sqy (old), 250sqy and 500sqy(old) at the time of possession?
I would be really grateful to have your valuable advice.
I think 500 yards is better option than 125 yards
Please never buy a property jointly-however good a friends you guys are. This leaves you with the 125yards option or 250 yards.
If you are a long term investor and are ready to wait then no worries, these smaller categories will benefit you the same as larger plots of 500 yards. There will surely be an extra premium on 1000 or 2000 yards plots. In the longer term 125, 250 and 500 yards prices will be correlated to each other at a multiple of 1.65. In the long run this relationship must hold unless 125yards is always in oversupply--which I believe won't be the case.
125yards X 1.65=250 yards price
250 yards X 1.65=500 yards price
or
125 yards X 1.65 X 1.65= 500 yards price
I have been following price trend of these three categories and 250 yards is doing relatively better than 500 yards for now.
Thanks Zubair & Wasi. Your suggestions make sense. But what confuses me is the fact that current own on 125 is just 6% of the total price of the plot. While the same is 34% for 250sqy and 30% for 500sqy.
I actually intend to construct and live in BTK, in sha Allah.
Could i be able to get one 250sqy plot by selling two plots of 125sqy after possession?
@ Muhammed, In my advise you should buy 250y after selling the 125y rather jointly buing a 500y file, as 250y in BTK is the most consistent category so far and also the rates appreciated the most among all other residential plot categories, the 125 y category as per the bahria past trends getting the most late attention, also the release of Ali block makes it even more dull.
You may please check the rates on the following link.
Like Sohail, I favor 250sqy more than other categories. Karachi is a different market than Isloo or Lahore. There larger the plot, better the investment return. However the relative mispricing cannot hold forever. In the longer run, all these plots sizes will fall into the 1.65X multiple scheme unless Bahria does not fix the 125sqy oversupply issue. Its more likely that they will balance the number of 125sqy plots with larger plots in the future. If 250sqy's price is 1.2million today, then the ideal price for 125sqy should have been Rs. 727,272--which it is not. Its likely that in the future it will increase to its level in relation with 250sqy, so has the most potential.
At the face of it, 125sqy seems to be the better investment than others. You probably will at least be able to sell two 125 plots to buy one 250 if not make a profit out of it. With 2 125 plots, you can get a pair (adjacent--side by side) plot from Bahria. This will also raise its potential.
InshaAllah Khair!
Thanks Zubair. Do you mean, if a person has two plots of same category in his name, bahria automatically allts him adjacent plots? or he would need to specifically apply for it?
one more question: i bought 125sqy from open market and its in general category. Can i upgrade it to corner/boulevard by paying the additional amount to Bahria?
It won't happen automatically, you will need to apply for it and will most probably get a pair without much hassle.
At the current stage, all files are general category, only after the balloting you will learn if you got a category plot or not. At that time, whoever gets a category plot, will be notified by Bahria to pay category charges. If you don't get to get a category plot at that time, you can always make a trade because there will be numerous plot owners willing to make a trade and avoid paying extra. So its a win-win for you inshaAllah.
Thanks, Zubair 
I am interested in buying a 125 yard file. Demand?