Safari Valley Prices

Buying Property Investors Advice
#1

Dear all,

My property adviser in Bahria Town phase 8 got me a plot in Umer block (safari valley) for 32 lac 40 thousand on Sunday. (told me it was a "Waaray Ka Plot", leveled and all and asked me to write a biyana cheque for 100,000) original plan was to sell the plot after Eid for 3-4 lac profit.

Today, he has sold the plot for 33 lac, 50 thousand after consulting with me. (1 lac, 10 thousand profit in just one day!)

Without going into the profit sharing ratio, this has actually caused me to worry a little. How come prices of the same plot are rising overnight? This is surely artificial in my opinion with high chances of coming flat or are the investors really showing this much interest?

What do the experts have to say about this? I want a third person advice before re-investing in bahria and once invested should I hold it after Eid or exit the market with 50,000 to 1 lac profit again.

#2

Well, after Eid, prices in Umer Block, will touch 40 Lac for a 7 marla plot, i am sure about that. Abu Bakr block is near to Safari Homes, which are almost all occupied and Abu bakr is next to that, that's why prices in Abu Bakr are very high, average rate is 40-50 Lacs in Abu Bakr, Next is Umer block adjacent to that, near to head office as well, i myself purchased 2 plots in Umer block and will keep them till December, i am quite sure that prices in Umer will touch 40 after Eid. Let's see, Regards,

#3

Thanks for the input! The guy has bought another plot for me, details i shall get to know tomorrow and will share with the forum members. This one, i certainly plan to sell after Eid after making short-term profit in the previous one

#4

Very Good and looks like you are attached to a sincere and mature broker. Best of Luck. Regards,

#5

Safari valley is good choice for investment in rawalpindi / islamabad

#6

Hello Wajih bro,

My brotherly advice is not to buy sell in real estate like this.You wont get handsome returns like this.By Selling in week or a month, you could put yourself in trouble at some stage in future.Just select well undervalued plot and wait for best time to sell.Time should be in months or years, not in days:).Buy the plot with full equity and not on upfront deposit only.

Buying and selling like this is not investment not business or job.If I would be you with 30 lakh or so, I could be doing some business for regular monthly income of 100,000 per month.If I could be interested in property business, I could prefer brokerage business or working properly as an employee in this field even it could be 30000 per month and could do that investment for long term.

To get maximum benefit from real estate, either do brokerage business or do long term investment.This is my advice for all those who want quick profit in real estate in days.Don't take me wrong please.

#7

This is not investing but rather speculating or gambling.

#8

Prices are still picking up in valley. And expected to carry on increasing over the coming months. Holding onto a plot till after eid is a wise decision. Only god knws long term future bt prices have trebled in last 12 mnths.

#9

Thanks everyone for the advice.

@M.Arshad: I do realize that this is speculative gambling and hence my worry. Today, I am going to finalize another plot in Umer Block which my broker says, we are getting for good price This one i intend to hold at least till year end and maybe even more. I am already doing a job in a good multinational so going fully into the brokerage business may not be my cup of tea. :-)

@ Nasir: Yes, seems mature and sincere but sometimes seems to good to be true and makes me fearful.:-)

#10

Dear @Mohammad Arshad, can you please share what kind of business you would do which can give return of 100,000 on investment of 30 lakh?

#11

He got me 8G plot in Umer Block for 32 lac, 50K . Is it a good price for this plot?

#12

Intern, I liked your question :). I will reply little later as I am busy right now.I would suggest you to open new thread by asking this question.So that everybody could share their opinion.

#13

Whats the significance of investing in safari valley? Why are prices going up?

#14

Price is ok for todays market. Nor expensive and nor cheap. Sold a plot in lane d for 31.5 lakh on sunday so things are getting better.

#15

Zane, can you please share plot # and was it leveled?

#16

Intern Asked me a question about doing a business with 30 lacs producing net monthly income of one lakh.

Before mentioning some business in pakistan which can produce 100,000 per month there, I would like to tell you guys that in UK and USA, if you want to buy or sell your running business, how business brokers calculate the worth of that business before marketing it for sale.

Let's say business is producing net monthly income of £5000.It means yearly net income will be £60000 and if stock and furniture worth £40000,total cost of business should not be more than £120000.i.e £80000 for goodwill of business producing yearly net income of £60000. If you buy any business which would be less than 2 mutlple of goodwill and stock you could be smart buyer and if you buy a business costs you more than 2 mutliple of total cost including stock ,goodwill and furniture, you should be aware that why are paying more.On top of that if you have good credit history you can get 50 % loan for buying running business at maximum 5% per anum. In other words you can recover your investment within year and or in 18 months.Normal person doesn't know these business calculations except business brokers.So if normal person buy or sell business he would do calculations whatever he would feel justified.

#17

In pakistan, my brother is doing business of Food grain in wholesale i.e Maida suji, Aata in Dalgirah bazar rawalpindi.I asked him how much you invested and how much you are earinng, he gave following information.one 80 kg bag of aata costs 3500 Rs, He sells it at 5-7 % of gross profit and he sells 40 bags on average a day. If he sell each bag at 3750, profit of 250 Rupees per bag with 40 bags a day.It becomes 10000 profit per day. With daily sale volume of 150000.He gives credit for 10 to 14 days.So 20 lakh invest rolls twice a month producing gross income of 250000 .Expences are as follows:

Rent:25000 One saleman who drives too. Salary 20000

Another one only driver and helper salary 8000. Another helper Salary 8000.

Other Expences 15000.

Total expense:75000

Net profit one lakh 75 thousand per month. He has one suzuki for loading unloading. Worth 8 lakh.total investment less than 25 lakh.

He told me that He invest in the beginning now he gets credit and give credit, no personal investment except experience and van.

#18

I also met with my cousin in Rabi centre. He was paying rent 12000 couple of years ago now landlord increased rent to 40000. I asked is it still manageable for him, he said yes. He gave following details. It'sbusiness of ladies clothes.He told me he has a stock in shop worth not more than 15 lakh and it's all on credit now though.He does sale of 40000 per day with 20-25 % gross profit.Making on average 8000 to 10000 per day with monthly gross profit of approx 250000 with Rent 40000 and one man salary of 20000 and other expenses including electricity,entertainment cost him 20000 per month.Producing him net income of 2 lacs.

Well if you get a distribution of of one reputable company like nestle or any other company with good sales volume.Companies provide 5-7 % gross profit on sales and these reputable companies want 14 day inventory in stock at all times. With 20 lakh inventory rolling twice a month producing sales volume of 40 lakh per month .with 5 % gross profit will produce 2 lakh per month gross profit.Office rent, Salary,tility bills other expenses wont exceed 10000 per month.During ths selling you can get more agencies which could provide you stock on 15 day credit.As your sale would increase yor profit would increase.

There are several other businesses which could produce income of more than 100000 per month on an investment of 30 lacs. But keep in mind everybody can't do business.You need to keep an eye on inventory, accounts, dealing with staff customers and suppliers is not easy for everybody. Credit management also very important to handle too.

For doing business you need experience and skills including investment.

#19

My uncle called a property dealer in Isb/rwp. He gave him a price of a plot (not sure which area of Isb/rap). 2 days later, my uncle called again, the prices were 2 lac more than what the dealer told. My uncle said this cannot be true... Something going fishy. He told me same thing when Gold prices were going up and up and reached in international market as $1800 per oz. Now it is down to $1300. He was right that price of Gold was not expected to go so high, something was going wrong (means it was artificially increased). The plots prices are being also increased artificially. Who is doing this ... Don't know! It will come down, but when .... Cannot say when? Spend your money wisely. I guess, there r 3 things u can do, (1) Don't buy right now (if your earnings r slow), (2) Buy and sell whenever u think profit is good for u without holding for a long, (3) Keep for a long long term investment for 10 years or more.

#20

Safari valley is the most populated area of phase 8 hence price increasing soo much. It also has the most developed commercial area. Hospital. School and safari homes and awami villas which are fully occupied. Rest of phase 8 is quiet and vacant and not many houses under construction.

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