Dear and respected Zameen Forum members,
First of all, I have been following Zameen Forum for quite some time and I must say it is really informative. I would like to congratulate Zameen Team for providing such a wonderful platform. The members have also enlightened it with their thoughts and experiences. Keep up the good work!
I am a 33 year old married overseas Pakistani working in Europe. I grew up in islamabad. I am planning to shift to Islamabad in 2 years time (Insha Allah). I have my family house in Isb where I will live on my return home (In Sha Allah).
However, besides doing a job in Islamabad I want to generate upto Rs.80 thousands per month through real estate investments, preferably by buying a house in Islamabad (any zone).
At the moment, I have a budget of Rs. 4 million. For the beginning of the next two years, I can also arrange Rs. 3 million each. i.e. 4+3+3 = 10 million altogether.
I am thinking of investing the money that I have at the moment in buying a plot etc. But not sure where to invest.
I request all the respected members of this forum to please help and guide me in this regard. What is the most suitable place where I should invest to start with? And which next options should I keep in mind.
My goal is to own a property (preferably a house) that is able to generate regular income of up to 80k per month. (Of course 80k is the ideal case).
Your valuable suggestions and comments will be highly appreciated.
Thanks in advance.
Qasim Rs. 10 million investment is not sufficient to generate Rs 80k per month. At least not in the form of rental from real estate at the moment. And you don't have Rs 10m up front.
So we will consider your options and the realistic prospects of a decent monthly income.
In Rs 4 million that you have you can buy a small plot but you must buy a possession plot, and somewhere not too far. Decent areas in Zone,V are out of reach in your budget. So I will suggest Zone 2. Your choices are two:- Either a small plot in JkCHS F-15 or G-15 or one kanal plot in Cabinet Society E-17/3. If you buy in JKCHS, you may need to,increase your budget slightly, but you can expect a decent monthly rental income as soon as you build the house.
But in cabinet society, you will need to wait 3-4 years before you can start receiving a good income. But cabinet has a low price at the moment and it has potential for very good value growth when Tarnol flyover is,built inshaAllah. If you build (not complete single story house with,the balance Rs 6 million. Later if you have more money u can construct firs floor. In the long term it will give good rental when the society gets populated.
10 million with no return of 80k/month ?. Come on PK1. It is absolutely possible. You are just limited to certain prospects of possession plots and that's all in Zone-2 and correct me if im wrong (CDECHS ur current love). Yes for many reasons CDECHS is good for long term investment as it will take time to get populated.
The more appropriate way for monthly return is divide ur investments in different zones and mix it up with some commercial/files/possession plot/installment option.
investing 10 million for a rental return of 80k is not so wise as u need time to time maintenance which eventually drop the amount if u see it after 1 year.
For example:
You build a double story house, lets assume it's E-17 (Pk1 new love) size 50*90 and think of renting it out immediatley. After the construction u must love the house and it will be a painful decision to rent a newly constructed house with all the state of the art fittings and marble, with splendid kitchen accessories and the agrrement signed at 65k (just an approximation in current scenerio) for full house.
65,000*12 = 7,80,000 / annum
Imagine after 1 year the tenant asks for a new paint and some bathroom/kitchen fittings had to be replaced. What would be ur reaction..errrr. OK u decide to repair the fittings and go for new paint option. Lets say ur total expenditure is 100k , so the annual return dropped down to 6,80,000 now and the depreciation continues.
So for 10 million i would never suggest anyone to go for rental return. Go for mixed options in different zones.
Pk1 nothing personal to u. CDECHS ur new love just at the lighter side.
Cheers,
Totally agreed with is base…
Rightly said IS-Base:
Can we know about ur new LOVE as well...
Thanks
Is-base, i think u griped it well man, keep it up.
Well you can buy different sizes of flats in Islamabad G-11, F-11 to generate this income you are expecting, but for that you need to invest more.
Excellent answer IS base …
@is base
Good answer
MOGEMBO KHUSH HOWA
FAKAT AAP KA APNA
CRORE PATTI
@All: Thank you all for your valuable responses and suggestions. It is really encouraging. I am sure there can be more than one ways of reaching my goal.
@Pk1: Are E-17/3 plots with possession already? Since the rates in G-15/F-15 are above my present budget.
@IS-Base: "some commercial/files/possession plot/installment option....So for 10 million i would never suggest anyone to go for rental return. Go for mixed options in different zones.". Can you please elaborate on that since I want need more guidance in this regard.
And I totally agree that putting all the eggs in one basket and expecting the best is also not wise.
@SAADI_AQUARIUS, @Mr.Khan, @Ali, @H--T,@Crore patti: Can you please suggest with your experience any way that can lead to my goal?
@Nasir Khurshid: Can you please share which flats in G-11 are you referring to? I have seen some with 2 bedrooms for upto Rs.4.5M (D/E Type).
IS Base so how do you suggest getting a 80k rental-income from 10 million?
I suggested CDECHS becz he does not have 10m up front. If he could afford 10 million straight away, then I suggest G-15/F-15, G-13 or DHA etc.
So what is your proposal to earn 80k per month if he can pay only Rs 4m this year, followed by 3m next year and another 3m the year after that?
@Qasim - yes E-17/3 plots are possession and you can get 1-kanal for less than 4m. And you can start construction straight away. You dont have gas there yet but pipelines are laid. Electricity connection will be given and water supply is through self boring until CDA starts supply to this society. By the way even in Multi residents are using self boring so far.
@Pk1: considering the option of E-17/3, which plot do you think has a higher Resale value i.e. 1 Kanal or 10 Marla or any other? Moreover which plot is better to consider facing Margalla or Murree or...?
Do you see a good price increase in this sector after 2 years or it would take at least take 5 or more years?
Dear Qasim:
I don't think with 4M upfront, you will be able to generate 80K rental value. I would suggest to buy 8 marla plot in Bahria Enclave and sell it after two years. It will give u good return in two years. At that time u can sell and buy some thing else where, having potential for good rental value.
Thanks
In E-17/e a big majority of the plots are 1 kanal. So it will be the one in which highest sale purchase will happen inshaAllah when dealer attention is focused in this sector.
I expect a boom time within a 1-2 years max. But generally this is not a sector in which there is dealer euphoria like in Bahria and multi. So all growth will be solid growth based on fundamentals.
When there is population here, you will get a good rental income - that may take 5 years or so (roughly where G-15 or F-15 are now).
But at that time, you will be in a very very good position with one kanal. Each of Ground and first floor will be independent unit and you can rent them out separately. Plus if you have basement, that will also give you half of ground floor rent.
So this sector will give you excellent rental and price reward but not instant results. However, it is a very solid investment - CDA approved sector, scenic view, Habib Rafiq development work, certain price boost when Tarnol flyover will be built, airport openinf etc. Etc.
Where else in Zone 2 or in the whole of ICT you have this kind of option at this kind of price??? Even the much hyped B-17 is far from main Islamabad as compared to Cabinet society.
Yes I am in love with this sector because of the unbeatable investment and residential opportunity it offers!
As for the best type of plot, well Qasim bhai with 4 million I would try to get a plot on the main road or a corner plot.
In a corner plot, you will be able to give independent gate and entrance to each of your ground floor and first floor tenants.
That way, you can maximize your rental income. Naturally, each tenant family prefers independent gate and entrance withour neighbour interference. So each unit will be like a totally independent house so rental value will increase.
Go for corner!
Pk1 I am considering the amount of 10 million altogether which can be divided as following:
50*90 E-17/3 possesion plot would cost approx 3.5 - 4 million.
There are many reasonable commercial shop options available in installment in G-11 markaz (some commercial plazas are currently developing). Remember G-11 currently is most populated sector covering the population of G-12,G-13, semi-slum areas of H-12 to H-14 and even residents of sector G-10 find more convenience coming to G-11 for their routine shopping.
For this shop option u don’t have to pay the amount altogether rather some 25 % down payment and the rest in installements. Lets say the total cost of shop is 3 million u pay down payment 1 million and rest are installments.
Zone -5 Jinnah Gardens, PWD, DHA small plot options if that comes under the budget of 2.5 million , for this Saadi can better guide u.
Zone-3 Bahria Enclave-2 is in minus right now wait a bit further when it is at the bottom down pick up the opportunity grab that pay 1 or 2 odd installments and leave that im pretty much hopeful it will bounce back. If u have some reservations with bahria reputation go for any other project in that area. For this u have to do some homework.
Now sum up:
3.5 + 1 + 2.5 + 1.5(Enclave 2 let suppose u pick that up in 0.7m pays 1 or 2 odd installment )
Equals 8.5 uptil now u still have 1.5 in ur bucket to pay atleast installaments of commercial option for upto 1 year round figure.
Now after 1 year look at the whole map u had plotted and decide which one to keep and which one to dispose off.
This way u can have return of approx 1M without any fear of depreciation of a constructed house and hassle of tenants.
Pk1 ur playing very safe covering the stumps altogether and tuk tuk Rahul
Dravid approach, remember Rahul Dravid was considered rock solid wall but he was having all the fears of hitting a six even if a half folly is delivered he can only go for a ground shot with a maximum of 4 (phobia of hitting a six).
Ok by this approach u can play a long innings but it will be boring for sure. Go for some excitement Pk1 the crowd is watching u go for a six if there is an opportunity.
@Pk1: Thanks one again for your valued comments. I also need guidance in regard to a reliable dealer for E-17/3 to buy a 1 Kanal corner/double-road plot.
Your kind help in this regard will be highly appreciated.
@IS-Base: Thanks for sharing your valuable suggestions. Can you please refer to any Commercial plaza in G-11 Markaz that is offering an installment plan, since I didn't find any over the Internet.
@Pk1: Thanks. I'll definitely contact Syed Ibrahim bhai.