Every now and then i come across the adds about new mega size plazas with flats/apartments in different areas of islamabad. I wanted to ask the experts about what the scope of these entities are. Is it worth investing in as against residential plots?
As per general rule investment in commercial properties is more beneficial than investment in residential. But before investing in such schemes one should make sure that the developer/ owner is a credible person, having resources and good past reputation. Thanks.
Ihsan,
I am talking about residential flats/apartment. What do you think about their potential in this regard as against residential plots?
Residential apartments are a smart investment for good r.O.I in the form of rental income soon after getting possession. People who bought apartments in f-10 are earning excellent monthly income from rentals. For middle class living, people invested in g-11 pha flats. Now the next such investment can be springs apartments which will provide reasonable income because of good location.
But generally, overseas pakistanis prefer to buy plots so that they can retire in a villa in pakistan after spending their working life in apartments or small homes outside pakistan.
Thaniks much pk1! What do you think of zarkoon heights g 15 area. Is it worth investing in? Vs some other areas?
Dear sinful, apartments are good for rental income but may not be the best investment option.
Good side, you pay for them in installments Bad side, you never know when you gona get them
Practically, you'll pay off the complete installments before you get the posession.
What to care for while booking an apartment?
Acutal size- pictures are always prettier than reality; apartment size looks big on layout plan but in reality it might just turn out to be a pigeon hole. Try to visit a similar sized apartment or model flat, if available
-quality of development, i can only laugh at that. From pha to askari to fgehf, i wonder if they have ever built anything durable n good. So what to say about small time buildings, where you see the developer sitting down with a table n chair, selling shops n flats to middle class salaried persons on installments. I'd exclude centaurus like developments here.
-track record, does the developer delivers on time, if not, count a realistic delay in your irr/roi calculation with an inflation effect on money
-compare the rates of land/house for the size of apartment, e.G. In g-13 now the per marla rate is around 1 million n lets say we r talking about a 25x40 plot. So your total cost of double storey house would be around 7 million, giving you a covered area of around 1500sqft. Now look at the cost of a similar sized apartment in the same sector (1500sqft), if that equates then its fine to go ahead n get the flat on installments.
However, please keep in mind, the price of land will increase much more than that of the flat during the lead time of building the flat (5 years minimum)
There could always be exceptions, so it depends what property are you considering, where is it located and whats the current status of development.
Conclusion:
Buy a plot and construct your own house if you have got the money on you. If one can afford installments only, then pick a flat with the best available developer.
Dear sinful,
I think mbs has summarized the situation in very much detail.
I would like to add that constructing a house without any experience could be a very challenging job while looking at the frauds in every filed of life in our society.
Location wise zarkoon hieghts is a nice place. They also own the land.
Regards,
Thank you mbs! I urge zameen admin to put such answers like mbs in a new section and name it facts of real estate as this is not just an answer but a hardcore post research facts and i believe every body can benefit from such facts if put i to a proper place on the web.
Thats why mbs is expert contributor…:/)
Highly appreciate your kind gestures, sinful and ihsan, 