I wanted to ask the respected members about their advise as i am planning to buy a 30x60 plot in g-15 and construct house on it for selling purpose. My questions are.
1. What would be the real price of 30x60 plot in g-15.
2. Is it a good idea to construct house thier.
3. What return can i expect from this project.
Roughly 80 lacs +-. Current price of new homes are around 140-150 lacs. Difference is 60-70 lacs. So whatever you construct below that level maybe your profit.
Ya its good place to construct and sell home and much better if you get a good location plot. Avoid depression plot
G-15's construction is not profitable. Typical 30x60 house will fetch around 15 lakh. Some old houses are available at less than cost price of current day construction. If one can get good deal, renovating and selling it might have better profit.
G-13 is the place where most builders are making houses for profit.
But Mr BR Malik I noticed that asking rents for completed projects in G-15 and F-15 are quite high. 1 kanal houses are fetching 1 to 1.5 lakhs.
@ malik sb. Sir construction situation is presently not good in g-13. I think g-13 is more better in plots right now. Homes have lost much of value. There are too many options around and most of the houses are still vacant.
Thanks all for your advise and suggestions.
Yes Arshid Bhai. G-13 's 30x60 has fixed 20 Lakh profit which is quite less for this much investment.
So don't you think G-15 is better option than. Also due to the present situation most of the investor has left the market including G-13. Recently spoke to a dealer and he was crying there is no sale purchase going on in G-13/14.
But i see investors are there in G-15 atleast
On more thing how much appx construction cost will be for a 30x60 plot and what profit can we expect at the end of the day.
I think due to high cost of plot compare to constructed house margin of profit is less so for living purpose it’s good but for investing to build margin is less.
Couldn't get dynamics of G-15's construction. How some old houses were available in less than cost price of current day plots and construction.
One of my brother's friend make houses in G-15 and he says that margin is around 15 lakh and that too with a lot of difficulty.
Without making sense of why is it so, I had the impression that G-15 is the place where one isn't attracted to living there. Only budget constraint coupled with need compel you to live in G-15. Budget constraints never allows buyers to pay some good margin. Plot buyers are different. They think that one day we will live and till that time G-15 will be very developed and access from Kashmir Highway will be open etc etc.
This was all sense I could make from G-15.
I am also looking for some place to start construction business.
Zeeshan Profit depends upon your strategy.
Low quality construction with hi-fi look or really good quality, demand for houses in that area, your target customers and your marketing approach, the location within the society where you intend to construct. You can earn more than you would expect and maybe much lower and maybe sometimes nothing.
In G-13 for instance right now many people are struggling to sell their constructed houses for more than 6 months or even an year. As market was rising by then so people were increasing their prices at the same time and now as there are almost no buyers so they are crying now.
I know a guy he got an offer 6 months ago and did not sell because the buyer was offering 5 lacs lower than his demand. His house is still unsold as of today.
And more the time it remains vacant or unsold it will depreciate in value as other will make new houses for sale
Thx malik sb. Yes it makes more sense about G-15.
malik bhai can you tell me which one is better in terms of ROI.
constructing from scratch to sell or renovate to sell. Margin in renovate to sell will be lower but you will save a lot of time i think and can consider other options in the mean time.
Arshad Sb,
You are right, the time required for renovation would be less, so the time required for RoI will be less... And yes the profit will also be less as compared to construction of house from scratch....
So, the end result could be:
Construction of new House: total investment 10 M, duration 8 months, profit 1.5 M
Renovation of House: total investment 10 M, duration 2 months, profit .5 million........
However, management of rennovation of house must be easy as compared to construction from scratch.
Regards
Also one very important factor for selling a new house ....
"Ïs gas meter installed or not" ??
As we know its very difficult to get gas meter these days, so it could be a problem selling new house whereas renovated house should already have one.
Sheikh Sb, valid point…
Old houses has gas meters installed.
Renovation all depends at what price one can buy the structure and it has no map problem.
I know a builder who bought 50x90 house in E-11 for just 30-40 lakh of the structure and in the end he made better profit than what he makes from new houses in less time.
Made changes in elevation, expanded bathrooms and renovated almost everything.
In short, renovation has better ROI but if there are no map problems. All depends upon deals.
Another thing which I wanted to say. I feel houses sell better where people's heart really want to live. Mostly house purchase decision is much influenced by the house lady. Ladies do not want to live in places like G-15 unless its budget majboori. When it's "majboori" driven purchase, clients do not want to give good margin. Relatively affluent class gives good margin to builders.
I am not sure of Enclave's margin. Others can comment on it.
DHA 1 Kanal has best margin according to some people. I am not sure of the figure.
I hope Mr Khan and Arshid sb can comment on it.
Thanks all, So again the point then comes where to construct a house for getting good margin, as you rightly said that people doesn't prefer to live in G-15 unless having budget constraint.
G-13 also ruled out so then which place is left in zone-2.
G-11 would be too high to buy a plot and construct a house there.
@ Zeeshan
Don't rule out G-13 or G-11 just like that. I gave the current market scenario which is not in favor of G-13 but who knows what will happen in the future. If you start to build it will take around 8 months to an year to clear everything and by then it maybe possible market conditions tend to get better.
Also the reason G-13/14 have been down for now is based on government's policy of increased taxes and the WHT on banking transactions. Around 2 months before this was about to happen a few big investors of G-13 told they were speculating something like this to happen and also told if it does happen it will adversely affect the market and investors will start pulling out. Well the same thing happened but other than this there is no other reason for G-13/14 to be down.
I think buying plot to build house during when prices are stagnant or depressed is better and where potential for rise is probable. By the time you are done with the construction you can expect market to be in you favor and sell. This way you can gain both from construction and capital gains on plot.