Making money in real estate is no easier than it is in the stock market. It requires a lot of work, patience, and in some cases a lot of luck. Just want to ask a question about future planing .
Is real estate ever a wise investment for retirees? Please contribute with solid answers. Thanks
Sir, i will not advise you to put all your eggs in the basket of real estate trading.
As you have rightly pointed out, this is a game of luck and patience. It can cause a lot of anxiety and as you know property dealers sometimes take a big chunk of your cake when you want to sell or buy your property.
You can invest some money in societies of reliable developers like multi professional and dha. For example, if you buy one small plot in dha valley and one small plot in multi residencia, the chances are that you will reap a very good profit in 3 years. But if you go for larger properties, the wait and see will cause anxiety and this is a time when you need to spend your money on yourself and kids; you don't need to block it for long periods.
My suggestion is to hedge y our money in different investments. Nowadays, property market is expected to give good returns because of the new government. Plus, there is some profit to be made in govt schemes and gold (which is low these days). The best thing is to mix it up and dont go for too many non-liquidable investments.
Dear hanif,
As you have urself appreciated that it is not that easy to make money through investment in real estate. I do agree that people make a lot of money through this sector, but it requires a lot of patience. It can certainly cause you panic and anxiety.
I would suggest investments only in reputed and reliable societies. Don't invest you whole in property, always keep a space for breathing.
Regards,
@ pk1, Very nice analysis, but which govt. Schemes do you mentioning ?
New govt saving schemes will have to be started because the new govt needs to raise money. The stock market is also a good option these days for someone who wants to hedge his savings.
For someone who can invest for the long term, real estate is a very good option but in the short run it may lead to problems. For example many seasoned and experienced investors invested their money in b-17 last year because it was rising. But in the last 6 months of 2012, multi b-17 slowed down because the margalla avenue project got suspended in the middle of the construction stage. The same investors who were looking for a quick profit are now disappointed.
But for a patient investor who is in the game for the long haul, multi b-17 is still a very good investment because margalla avenue will be completed sooner or later. And the development standard is excellent.
However, for a retiree who has his and his children's needs will face anxiety in such a situation because there is no clear time-frame for completion of margalla avenue. After investing 30-40 lakhs for 1-2 years, it is a loss to sell it in the same range when the rupee has devalued massively and inflation is sky-rocketing.
Dear pk1,
I have a budget of 5 million... I visited pak last month & searched in ph8 lahore... But couldn't find a reasonable 10 marla in that range... Now someone said that fazaia raiwind is good in terms of investment... I contacted them and asked to give installment option that suits my budget...Whats your suggestion... Is it worth it investing there and what can be possible growth & returns by the time i finished up with my installments.. Say 4 years ??
You better invest in lda avenue phase i, jubilee town, iqbal avenue phase iii, p&d etc for more details email us at info@qnc.Com.Pk
Dear shoaib bhai…I totally support your idea of investing in zaamin faziya. You will find nothing of comparable standard, size and development and location in lahore. This investment will be more than double in value in 2-3 years inshaallah.
And how is their (zaamin group) repute in general… In terms of timely handover, quality of work, general commitment etc. ?? Actually i worked in eden housing for quite a time, & after witnessing everything from inside myself, my trust got totally ended up from these developers…
Investing in real estate for retirees can create passive income that can supplement pensions and social security.
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