Stocks and property to me are very similar… Both are long term investments and you have to hold them for years to see considerable gains. Obviously stocks are more liquid but also more volatile than property, so there is upside and downside to both. Pakistan stock market has historically performed better than real estate as an investment but over the last two decades, I believe real estate has outperformed stocks.
Across the globe, the world invests in stocks to make the money. RE no doubt is a proven solid investment but it's not one size fit all solution. It's evident and written all over that new generation of bilionaire is entrepreneurs and stock investors not the RE enthusiasts.
In PAK we are a generation or two slow in adopting what the world pursues. When world moved on to cryptos, we were still confused on typical 90s question: Stock or Real Estate. Yes crypto not bullet proof but it has the potential. The ultimate answer is diverse rather than putting all in one basket.
In PAK stock market is highly volatile and manipulated and that's used to be done by none oher than former PMs like Shauket Aziz. Moroeevr we are a show-off society number of plots owned is considered as Social Boost and Status-quo and that's gonna take some generation time to shift such mindset.
This is why world has income per capita increasing and we are unable to cope up at same level ...
Awain The crazy Musk says
" It's OK to have your eggs in one basket as long as you control what happens to that basket"
& replaced the following quote of oldie Buffet with his unique ideas and performance........ :)
“Do not put all your eggs in one basket.”
@Ilyas bro, 70-30 rule is not for diversification, and nor entirely for rainy days. It is to create "liquidity" that allows you to have free cash available to invest on any new opportunity. If you are "chocked" with long term investments, then you will be very "rich-poor" man !
Chinese have made artificial eggs, that look and taste like real. These eggs defy the old Buffett rule, so you can keep in the same basket.
https://youtu.be/MVSsNdGZCHE
@Zubair bro,
"Trigger": are any news or reasons which have profound effect on property prices. For instance, RRR on BT-Ph8, DHA-3 and proposed Kashmir Highway interchange on G15, G16, FT, Eighteen.
"Probability": is the likelihood (in percent) of any trigger to happen. Suppose, Margalla Avenue construction has 50% probability to launch this year then you will perhaps like to take a chance to invest along MA route in hope of return. Suppose this is very low (10%), then you will surely not like to block your investment for such a low chance.
@Isloo 1 bubba,
1st Part:
I am agreed with that and i have put that 30% in industries and the distribution network......
2nd Part:
I am die hard Trumpy..... :)
The rest of your demo is quite brainy......
@Ilyas bro, Warren Buffet baba ji once said
"diversification is protection against ignorance"
@Asad sb, I do not favour stock TRADING due to volatility as you said. However, you should consider INVESTING in high-dividend stocks for long-term. Chances of loosing are minimal. Many people believe buying and selling (trade) is the only way to earn from stocks and they overlook it's greatest potential in terms on dividend.
Isloo 1 bubba of ours!
You know Musk is a bit crazy and trumpy in style and has mocked the oldie buffet otherwise Musk has diversified his investments...
1) Telsa
2) SpaceX
3) He recently invested in Bitcoin and gave it a big push in market
4) Paypal
5) Solar
Etc...
The Devaluation Discussion got to the point where an (Outspoken) Entrepreneur who is ambitious about sending humans to outer space as an inhabitant is Compared and Equalsised to an Open Fascist whose Publicly expressed Hate for Race, Colour, Religion will take time to erode.
Being Outspoken ≠ Being Fascist
Dear brother Imtiaz,
Thanks to simplify the terminology.
Let us come to the devaluation..... Prove it to the above your two "Mureeds" How precise you have been in this thread advocating for $ since 2019 and how wrong were the followings advocating for real estate... & please do share your experience you got in last two years from your FACTS from google in this thread especially .....
1) Abdul Qayoom sb
2) Sohail Khan sb
3) JDM sb
4) Nadeem sb
5) Ilyas
Well, since you have gone to your basics, i.e., to launch personal attacks on those that counter-argue to your beliefs.
--> " Prove it to the above your two "Mureeds" How precise you have been in this thread advocating for $ since 2019 "
I Will not go to same level of personal attacking, instead I already presented couple of days ago and I will once again share the fact here:
Same Thread, 840 days (2.3 years) ago, Feb 2019 approx, below is what I wrote and the link is here to go back and verify:
=====================================================
https://www.zameen.com/forum/discussions/buying_property/devaluation_of_pakistani_currency-30943-9.html
[1] ==> Some interesting predictions, may or may not come true.
Prediction in 1 years is approx 164 PKR/USD, if that comes true than 4 years prediction will most likely become a reality with approx 192PKR/USD.
[2] ==> Will Dollar to Pakistani Rupee rate grow / rise / go up?
Yes. The USD/PKR rate can go up from 139.089 to 164.316 in one year.
=====================================================
Check the USD-PKR Parity in 1 Year Window from Feb 2019!
That's all, I have to say!
Ilyas Khana,
The life is short, lets not make it too complicated in keeping cows :)
I just open this thread now, so quickly will first translate for Isloo the following :)
Sohail Khana sta ov da Isloo Naghd maal khwakh da (saying isloo and sohail like cash only)
WAYI DA GHAREEB MOOLA PA AZAAN SOOK ROOJA NA MAATAWAI (saying on the poor Maulana Azaan no one even breaking his fasting).
Ilyas Khana,
I think the perception about investment keep changing in different age of the life, for example me being in my 40's now might not find everything interesting on 4 years of payment plan but 10 years back was happily entering in many such projects.
Nothing will remain with us for ever, so instead doing so much of maths better is to enjoy today also.
world is beautiful, instead buying additional cows (property) why not we do few countries visit instead :)
100% agreed Sohail Khana roora… The world is beautiful & must be explored… In the last two years i played too risky in commercials Installment and now closing things one by one and just waiting for the cow to start milking than buy more cows…
Being overseas I am mostly a silent reader and visit here time to time specially currency devaluation topic. Imtiaz, Isloo and Qayum keep up with your good work you guys doing excellent job.
@Shayan, thanks bro, we all learn from each other, this is the beauty of this forum. So please do share your experience and knowledge. At times we get too excited and involved, but that's the sign of emotional intelligence.
@Sohail, many thanks for translating the Pashto sayings and quotes from bro Ilyas and its a shame that I need translation.
@Sohail/Ilyas: on raising "cows", perhaps nobody had terrible experience than me in raising cows who would either never grow or turn out to be "bulls". So yes, life is short, so we should make it pleasant for ourselves and those around us.
"bulls": That made my depressed approaching evening smiling... Thanks Isloo 1 bubba of ours!
My one commercial plot has made me confused ...... Should i call it "Bull" or "Cow"?
@Gentlemen, devaluation of Pakistani ruppee is a fact as I sold a commercial property in Rawalpindi in September 2018 and immediately paid the price. It is not nice when all of a sudden your money is reduced by around 20% plus when converted to western currencies. I prefer bitcoin and altcoins for those kind of wild swings in price.
If you guys divide the value of your property by today’s dollar and then covert it to dollar rate 5 years back, you will get the real property appreciation rate, which will most likely be 5-10% annual.
Prices of real estate have almost doubled in Pak, but in reality it’s just the rupee losing buying power.