Dollar V/s Sheikh Rasheed V/s Real Estate

Buying Property Investors Advice
#1

As Pak rupee is strengthening, the chances for crash in Pak real estate market is going high. People in Pak may not care about speculation and bubble. But foreign investors and institutional investors do care about the fair value and overvalued assets. As soon as they pull the money out of stock market/real estate and sell or short the rupees, both stock market and real estate will crash. Also there will be no buyer in market as our real estate market is already in a rescission state.

Besides the ratio between average salary of a person suggests that renting in Pak is much cheaper compared to buying a home. The only advantage of buying home is appreciation of home prices by year over year. But it is already appreciated by more than 5-10times, I do not see any significant upside in real estate market.

Now as far as Sheikh Rasheed is concerned he'll never leave politics even if the dollar drops to 80 :)

I would like to mention these are my personal or a group of friends/investors opinion I don't intend to disheart or disappoint anyone.

#2

Nice viewpoint Apple sahab.... But you know most people will disagree with this here... :)

But again you have given a nice dimension to thinkupon!

#3

I just want to see the face of a crap (S. Talli) now… After dollar today crossed below his 98 belt limit…

#4

Thanks mr. Shoaib :)

in my case i would like to see him in politics for ever :) I'm from rawalpindi, Media is creating hype "sheikh rasheed astifa kab dain gay" you can see this ticket on all news channels

#5

You will not be disappointed then… The clown will never leave the theatre of politics. :)… I am from K.S.A (expat of Lahore)

#6

Nothing will happen here don’t worry. Shabaz shareef ne kaha tha agar 6 mah me bijli ka masla Hal na kar diya tu mera name badal dena or zardari ko sadkoun pe Gasitoun ga bla bla but up till now they did nothing .

#7

Hahahah ultaf hussain

#8

If this increase in rupee value is genuine then i think it is good thing for real estate. If they are able to stabilize rupee for a significant amount of time then more overseas investors will jump in property market.

#9

That's what i'm saying ZOL i don't see an increase in near future in fact they'l further decline. But as u said "if rupee remain stable for a longer time then more overseas investors will jump in property market" its s not only good for realestate but good for pak economy as well but will it remain stable there is a big question mark and for how long ?

however at current point they'l try to retract their investments in pak

#10

Sir, all it is speculative economy based on “Sitta”. Why Isahaque Dar was silent when $ jumped. State Bank could nab all these culprits in one day. Yeh sab bakwaas hey. Saudi crown prince gave them $s

#11

From where the dollars are coming is not a concern here brothers. "A rahay hain na anay do".

The speculations says the rupee will be stable at 102-103 till the end of this year.

Rest ALLAH knows best

#12

Well Sheikh Rasheed's answer on resignation demand is:

Usi sarak kay kinaray se mera resignation letter utha lo jis sarak per shahbaz sharif ne zardari ko ghaseeta hai,, he is a good politician and has nothing to do with Dollar.

Coilation support fund plus Dollar influx from Saudia Arabia is the main cause for this rupee strengthning.

Plus, the rates of developed societies, ready possession plots and homes will not depreciate, even if dollar comes back to 60, yes, the files anywhere they are the prices will drop.

#13

Now Sheeda Talli is saying k Finance minister petrol 50 rupai se sasta ker den... Mera resignation haazir hai... Hahahaha

kese kese maskharay hain parliament me wese.

#14

I am not an ecomonist but common sense suggests that a country's currency strengthens with growth, employment, new businesses , construction etc and not overnight with 1.5 billlions Khairat from a ' friendly' country.

This is all temporary fix and rupee will soon come back to its real ' auqaat'. Any rise that will come slowly with some good economic gains is likley to be more stable and long lasting,

Also I dnt understand the point of foreign investors pulling their money out if Rupee rises ? I thought it was the other way round and people would like to invest in a a better progressive economy where currency is gaining strength so that their capital grows with time and will pull out if the currency crashes ?.

When rupee was down I heard the same argument i.e people are not investing is rupee is crashing and would rather keep their money in dollars than buy a plot/house.

So which version is correct ?

Any economist ?

#15

@ Zafarullah...

You are very right in analysis that genuine growth will always come gradually with solid reforms in country economic policies...

ITs true that with rupee strengthening, the trust will develope more among investors to invest...provided if its not a short lived one gain in currency...

The other dimension of this aspect is, that with the gain of 8-10% in pak currency... The benefits should be immediately transerred to the public and end users.... And it should be in everything items covering from daily food items, fuel, cars, rentals and fares, construction materials, and realestate/property as well.... Otherwise if the rates of all these aforementioned are to remain the same... The rise in pakistan currency will be useless and meaningless to pakistan public and it will be negative for overseas... As with this their purchasing power is reduced from before.

As an example, if anyoverseas has 100,000$$, few weeks before he could buy an assett worth 1 crore 7 lac rupees approx... Now he can buy an asett worth less than 98 lacs...

So my point is with the rise in currency value, first thing is that if it is to remain stable.... The rates of everything should and will be adjusted accordingly in order that benefits are truly tranferred to every segment of society.

Thanks,

#16

Thanks Shoaib bhai

I differ a little on the second point. If I am an overseas investor and have X amount of money, why will I invest if i see the rupee going down every week , despite my better purchase power, why will I invest and see my $ lose their value by investing in Pakistan?.

On the other hand if I can see the rupee rising , despite the fact that I will be able to buy a smaller plot , I can see my money grow with a better rupee strength in the market.

#17

I personally know my friends who wouldnt invest as they always compared the speculated profit on any property vs the amount they will lose due to falling rupee and thier argument was that they were making the same or more or less te same money in real time in pak rupee , simply by not investing their dollars.

Dont you think if Rupee rises and property prices start going up in terms of dollars, people would like to invest ?

If say dollar is at 100 rupees today and a house costs me 50000 dollars, if rupee keeps rising the same house may cost me 70000 dollars in due course so some people may look at it this way and buy today.

#18

You are right Zafarullah...

If rupee is going down, it will be more hard and difficult to attract the overseas and foreign investors... And with rupee strengthening it will be definitely easy..

BUT

I am pointing that lets assume first that according to some fellas that your currency is improving on genuine grounds and it will remain steady and stable now.....but if your currency is improving without the benefits trickeled upon you... And the rates of everything is as before as it was under weaker currency phase... Then what ?? ...it will also discourage the investors (a large portion of it is definitely from outside, you know that) that there is not pricing control and authority writ in this country. And this govt hesitates to facilitate its public even during the good times.

Thanks,

#19

Shoaib bhai I agree with what you said. This is an issue of good governance that you are referring to and as you know people have invested despite these issues in the Pakistan. My personal view is that most overseas investors are overseas pakistanis who invest basically bc they want to have a home in Pakistan . They will keep doing so despite all the problems you mentioned. This is their love for the country and nothing has shaken it so far.

#20

"If say dollar is at 100 rupees today and a house costs me 50000 dollars, if rupee keeps rising the same house may cost me 70000 dollars in due course so some people may look at it this way and buy today"

Do you know few in this country who would believe that rupee will continue on gaining against international currencies in that fashion. :)

If anyone believe so including me, he will definitely rushed towards investing in pakistan as early as possible

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