Please guide how i can earn rental income of 2 lak per month by investing 3 crore. I am willing to either buy a property (residential and commercial) or buy plot and construct in islamabad.
Mr Haq for steady rental income without much hassle just to share one example from the top of my head one can buy 3 seperate one bed flats in Islamabad cda sector F11 costing between 90lac to 1cr each that easily generates a combined income of around 1.50lac per month. (Sold at 75 around two yrs ago, so comparative price appreciation has also been reasonable)
Im sure other members can suggest more options.
I have a similar query, I want to buy a commercial plot to then construct for rental purposes. My budget for the plot is 5crores, at the moment I'm looking at Gulberg and DHA, I like gulberg better but due to lack of population I'm worried about the rental value.
What would the experts' advice be?
With that money, try to go to G-series or in particular I-8/9/10, rental yield on average will be best than the rest!
In Future, Gulberg will thrive, but for now the Commercial is already in surplus and sort of devalued on resale or rental yields!
Generally renters in CDAs sectors and twin city colonies , renters are problematic. I have enough examples particularly in CDA's Markazes.
So far as per my personal and friend's experience, DHAs and Bahrias situation is lot better with renters.
Bahria phase 1-6, a 5 Marla commercial costs 3.5 to 4 crores in civic center.
A plot can be bought and construction could be started. Buyers will come and book on Installments, halls/flats/shops, 3 years completion time frame as it takes normally 2 years to do plaza but you will hand over early to get good name in the market.
Alternately bahria overseas phase-8 sectors are very hot and coupled with RRR, your plaza will be sold like hot cake.
But to buy plot, you need to be quick as after Imran inaugurate RRR, dealers will make havoc to sell on RRR name.
If ceiling is tight at 3 crores then still overseas bahria can be explored as construction cost will come from buyers thru Installments but liquidity should be more than 3 crores.
Look for commercial property in Islamabad proper, you should get rent from 1.5-2.0 lakh in your investment.
Safe distance from investment in flat must be at least ONE LIGHT YEAR....
One light year= 9.5 trillion km............
( flat might yield desired rent but the annual growth in flat is too less as compared to commercial plaza or commercial plot with POSSESSION)
Go with Abdul Qayoom sahib and explore the options he has recommended......Because he has the PRACTICAL EXPERIENCE in commercial property & good luck please....
BT/DH/BE etc. can have more peace of mind as far collecting on monthly basis but it will not give one what the investment deserves, i.e., Percentage of Return for Invested Money!
Here is what I have to add:
Alhamdolillah; I have commercials in CDA VIP sectors and return never more than 0.5 % for the last 20 years.
Meaning 50 lac shop will never yield more than 22,000 per month in Markaz.
In bahria Pindi exact 0.5% return at prioritized locations such as in civic center, small sector commercials little less.
Most recent experience:
As I wrote b4, our plaza in overseas at finishing stage. I kept hall for myself and now being offered 10 lac profit if I sell.
A countrywide food chain want several floors for lucrative profit and just yesterday party want to buy the whole plaza: Not only that, one renter from the vicinity want to take on rent more than 0.5%.
This is happening in phase-8 where commercials are crying for renters at places!
So location matters most.
Even in Islamabad blue area, Shops cost like fortune but rents are not versus investment. Lot of people keeping for the name sake!
If some friend sees it otherwise, I would highly appreciate his/her feedback.
AQ sb I trust your figures and first hand experience.
Having said that I guess, based on my experience, which is off-course not absolute but individualistic like yours.
22k for 5 million and similar ratios of investment to me sound undervalued as far as Markaz of F, G, I (in general). For BT, the best of the best (to me) is Civic Centre. The Question: How many civic centres in total in BT?
As a personal experience, I had collected rent of 45K on a net invetstment of 5.4 million in BT Phase 1 (Safari Villas 1). That looks super wow on paper but a night-mare to sell-off on cash and no appreciation in the capital!
Static figures while ignoring other relevant facts can be misleading!
Thank you all for replying, much appreciated.
I went to Gulberg so would share my findings for the benefit of the members.
In the main D Markaz price of 10marhla commercial plot is around 8crores, while in the mini commercials price of 8marhla commercial plot is 4crores. The latter suited our budget but the problem is the lack of population, hence our main objective of rental income was not being fulfilled.
The other option was to buy the ground floor of any plaza in the D Markaz and then rent it out, it's a decent option but we are not convinced yet.
Tomorrow I plan to visit DHA side, will see how that goes.
Mr Abdul Qayyum could you be so kind as to send your number at 03338527091 or whatsapp me at 03320777492 so that I may benefit from your experience, that would be of great help!
As for the Cda I have been advised to check out the sectors D-12 and F-11 respectively.
Sure random pockets are here and there which give ROI out of proportion not only in BTs and DHAs buy all around the societies.
We all know there is large parity between residential and commercials from renting point of view but, Yes, in capital luxury flats give much higher rent. These apartments usually rented by expats who come on vacations and rent for limited time.
My friend has a villa in BT phase-7 and due to the fact that his property is in tight security which is unique in the whole phase-8, his rent is very lucrative.
Sir, rents are very good in other societies as well , such as PWD, Media town and numerous in down town but as per my exclusive experience and my closd buddies, BT and DHA has peace of mind with renters, much better than our CDAs investments.
Yes, I fully agree with you regarding property appreciation, my capital properties have been appreciated beyond my projection, Alhamdolillah.
But some renters a constant headache.
My case may be unique but my friends in the same boat.
My WhatsApp is 03115162239
You can always call me, Now a days, I am frequently travelling to my village as I recently relocated from Gulf to PAK, in my village signals may be problem but we can converse once I am in town.
Ok iA, thank you!
Let me add one of my experience here as well. Me and my brother in law bought a 6 Marla house old house in I-10/4 in feb for 1.6 crore, we did some very basic maintenance work and a basic paint job and gave that on rent on 60K per month. But just after 6-7 months we are getting offers of 2 crore. Also we re renovate full house and make it according to new CDA layout plans than it can be sold easily around 2.5 crore. So i think taking old houses in CDA sectors and renovating them and selling can be serious business.
Iv also heard positive things from a few ppl doing similar work in cda sectors Isb. Thats pretty good ROI for said timeframes. Thankyou for sharing the current figures Mr Nasir.