Hi folks ,
With these funds , what is advisable to buy for monthly income , around isb, rwp, taxila
Ahmed sb
You can buy a full ready to rent plaza in bahria phase-8 in hot sectors.
Phase-8 has some non performing sectors,too, and those locations to be avoided.
You may save some from this amount. This much money could give you a 6 story plaza and, if in hot sectors, renters will approach you even during construction.
Banks and bakeries and food outlets would get the plaza on rent and if you want to sell, much easy to sell the whole plaza or piece by piece.
We just sold one and now working another 5 marla commercial plaza most probably in sector C.
You can book the whole or partial on Installments with some down payment.
Time period 2.5 to 3 years with all legalities met.
@AQ sb, what would a plaza of 6 Crore worth would fetch in terms of monthly rent? Plz give breakdown by shop/flat at each level. Thanks.
Isloo1 sb
Our plaza has the following:
Basement Hall
Ground floor Hall
1st floor Hall
Then two bed apartments above.
It is all sold while we are still putting frontage tiles, lift still not installed and internal stuff still going on.
Our partner has a very good reputation in bahria and we do not have any difficulty in selling, Alhamdolillah.
Now the rental picture:
The basement hall was sold at 1 crore 17 lacs but since it is sold the whole plaza, we we offered 8 lacs profit to 1st buyer and it has been accepted. The new plaza buyer will put all plaza on rent.
One bank offered us 70,000 rent of basement Hall, cash n carry, the neighbouring shop keepers ..all were requesting to buy and put on rent.
1st floor was sold at 1 crore 20 lacs
Flats were sold at 85 lacs each.
Each flat rent being projected minimum 40 + K.
One thing must not be forgotten...buy and build in hot places as so many plazas in phase-8 are crying for renters.
The halls can be divided into shops to get more income from rents.
********************
Correction pls:
The top apartment was sold at 83 lacs with top roof rights.
All other flats were sold at 80 lacs.
@AQ sahib
Very helpful info, thanks.
Can u plz elaborate good, not-so-good and dead sectors in phase 8 for commercial plazas, along with commercial plot prices if possible. The plaza u built is I think in overseas sector, off the main Bahria highway in the heighted area, right?
How are Safari valley commercials, like hub commercial or the commercial strip on main abu bakar boulevard, right across from Bahria main hospital and bahria head office. I think more of this area and Safari valley, as here are smaller residential plots and thus chances of getting populated sooner is also high in such areas. Thanks
Musafar sb
Hard to classify phase-8 areas as per your query.
Hub commercial is good but as of now the hottest block , both for residentials & commercials, is overseas-5 as you said just on the bahria highway.
But here one thing MUST not be ignored!
In overseas-5, bahria made another commercial which is near the village....never fall for that!
Other overseas are also good but overseas-5 is the leader.
In overseas-5, people demand 3 crores for commercial plot but you may close deal at 290 or some thing around.
If we make your plaza then it will cost you around 3 crores...may be 290 ...including top quality, maintenance backed lift, material but not diyaar wood plus our service charges.
Normal rent shall be 3 lacs per month but may touch 3.75 lacs if a bank rents, part of it.
@Abdul Qayyum sahib thanks much for sharing this info. For an investment of roughly 58 million you are getting a ROI of 6% per annum which is good for rental purposes. I assume rents normally increase by around 10% per annum in these areas?.
Thanks AQ sahib, but I think prices in hub commercial and on Abu Bakar blvd for a 5-Marla commercial plot are much lower ... aren’t they? If yes and if they are not too bad i.e, dead by ur definition then they could be an option for some investors who can not afford 60 million.
What do u think?
Rauf sb
Yes sir 10% annual rent increase is as per the law. Plot price also appreciates as it is a commercial plot. Even in hot areas residential plot also increases more than bank sood which is also Haram.
In DHA-2, I bought plot at 67 lacs and thought it was abnormally high in cost but now it is minimum at 2 crores and 75 lacs.
As per the sood calculations, profit is much higher. Trick is location location and location.
Musafar sb
As I said hub commercial is good but cannot be placed on par with overseas-5.
For limited resources person, even safari valley's muhalla commercials are good in rentals...yes rental return is little less but as more and more residency is coming, these investments will prove good both on plot prices and on rents. Abubakar boulevards commercial is good as per the pocket limit and return is also good...but selling time is much lower in overseas than all other locations, including Abubakkar also.
I have 15*20 ft commercial units in safari valley Usman block and always renters available once vacated.
Thanks again AQ sahib
How are prices of the 15x20 commercial plots now in safari valley? Is it true that they have made a mini-market in those streets and not just 1 or 2 plots. Will this not cause oversupply of commercials in these mohallas, as realistically how many shops are needed in a mohalla. What are your thoughts on this side of things.
Also, can you kindly share current prices of 5-marla commercial plots in hub and on abu bakar blvd if u know, I know u r on ground and sharing this info will help overseas brothers here in their investment planning.
I was once very interested in Hub commercial but on further investigation came to know that its not easy to sell any shop or apartment there, even the entire plaza unless below market price.
The renting out was easy though but the property which is hard to sell is not advisable.
There are 8 Marla commercials on E sector MR highway, seems more promising and prices are also appreciating in good pace but needs more details as how the business district will impact all such areas.
On investment of 6 crore, I have mixed thoughts.
On the face of it, 6% rental return does not seem like a profitable proposition. With near 10% inflation and currency devaluation, you are actually losing in real terms. Plus you have to pay ~15% tax that means 6% shrinks to 5.1%
On the other hand, if you can hold for 4 years, then rent would grow to ~9% and begin to beat inflation. Plus if property value increases by let's say 5% per annum, then your 6 crore will become nearly 7.3 crore (21.5% gain). This increase is minimum, considering RRR and increasing population factors.
The big plus of rental investment is 'liquidity'. You are getting cash returns every month that can meet your expenses or re-invested.
Note, rental income is taxable and capital gain is not if you sell after 4 years.
As a matter of facts:
-- RE, in recent years not that shiny as it used to be in terms of ROI. Yes, its safe and stable but appreciations and gains are getting low each passing day. There are a few exceptions but compared to other businesses and sectors the returns are far lower and devaluation (as Isloo indicated) further adds insult to the injury.
-- Having said that, if RE remains ones cup of tea even then putting all eggs in one basket in not advisable. Among all these RRRs and MAs and what not, area around Kashmir Highway is having a geniune boom, whatever the margins and percentages. The tail of G sectors, and private prjects around are poised to do better in the short and medium term.