Hi experts,
Do you think buying 10 Marla to one Kanal to two Kanal old homes in DHA Lahore Phases 1-4, renovating them and re-selling at marked up price a feasible business? If yes then how much investment is required and what would be the average gain per transaction?
If you have good deal in hands. Yes it could be profitable business. Dont spend to much on renovation. How you motimated for this business? Do you have any good deal in hand. For that you should have very strong relationship in the mrket. Otherewise it is difficult have to good deal.
Yes, it depends on the old house that you would procure and also the expenses required to uplift the house.
So, for every project, you would need to make a feasibility report to decide whether to go for the project or not.
@ Mannan Butt,
Why it is impossible to answer...?
@ Tahseen
Yes it is feasible but provided conditions to be successfully complied first.
Get the old thing on a very competitive rate
Work out the renovation plan thorughly and very wisely as per locality trends and future clients targeting.
Spend your budget very efficiently; don't overspend anything.
Last but not the least; as M. Ilyas mentioned that you should have a strong connection in the market plus you should also have some experience in the construction field as well (how to get very competitive rates for quality materials, quality workers & labor etc, how to engage them very efficiently etc etc...
Renovation business is a tricky and not an easy one, but Yes it can be profitable if you are smart & quick enough...
For you second part of question,....for example an old constructed 1 kanal home (20-25 years old probably) in DHA phase 1-4 can be acquired anything around 1.5 crores (depends ont he quality of smart deal, locality, condition of property etc.)
you can Spend between 2 to 3 million on it. Depending on your renovation plans and findings... And then can be targeted for 2 to 2.5 million profit target...
My uncle once sold a 1988 self constructed 1 kanal home in DHA, S-block, phase-3 ?? in 2011 in 1 Crore 05 lacs.
That means good deals are always available out there
@Butt Sb
You will forget to built new house and sell if once you did this old house get renovation like new and gain 10% to 25% more than new house.
You need renovation doctor like us who design it as new and renovate in very reasonable cost and you can sell as new.
If interested contact us at designsource99@gmail.com
Thanks and Regards
dSA
92-333-4220989
Shoaib Bhai
Can you recomend any good dealer (trust worthy). Dealing in dha old houses?
No idea brother M. Ilyas... As i am living here is KSA as expat for quite a sometime, but I have plans to set up the same kind of work whenever I will plan to return.. As I am an Architect and belongs to this Design and construction industry...
Regarding your question, dealers might not be too much helpful in this regard. I would advise you to try getting a one to one buyer/ original seller deal to avoid middle men in between.
Yes it is profitable and it depends how much you are investing, it depends on what price you are buying and what, you need a qualified, experienced contractor, who can judge the structure strength, quality of work and renovation time and cost, it is profitable no doubt but not easy, it is a full time job.
It is good but mostly us k leye jis ki apni investment ho.... Or technical side pe bhi khud lead kerey... Being only a layman investor and handing over to a contractor is a very risky thing.... As contractor is also doing business in market... He will by any means try to keep the most of benefits with himself...
This i am telling you as per my own experience in pakistan construcion industry...
Hi
I am amazed to find so many answers. Was not actually expecting that.
I am more confused now. :)
Some think the question cannot be answered. I thought every question has an answer. Well.
Some think it is not feasible. Others think it is quite possible and profitable.
For those who have stated that it will be almost impossible to find a good dealon old houses since agents will never let it pass. Thumb up to you guys. U r absolutely right to some extent and I was expecting that.
Can you suggest a solution to this problem? It is a question again and please try to answer.
For those stating that the investor needs to be builder himself since contrctor will not honestly perform his task. Please suggest a solution I am not a builder. Is there one honest man who can be relied?
Your earlier answers are much appreciated.
I was kind of expecting list given by mr. Shoaib.
And mannan butt sb all the questions u have stated in your answer are the kind of questions I was expecting to be answered.
Thank u
What I meant is that if you are an investor only and no proper personal experience of this work (regarding purchasing of materials and workmanship especially), then it will be a risky thing for you, unless you have a very trustworthy technical pal engaged with you in this work.
Obviously exceptions are out there all the time...but in the scenario mentioned above I will again advise you to be very catious, it only depends on whether you have a trusted contractor/senior mason with you or not.
Lastly, to target for better profit outcomes, don't go after "with material" sort of contract.... (as if you are an investor & non-technical person).... Better to have a Labor rate deal only... Try to research and list out the sourcing of quality deals of Materials yourself.
Thankyou,
@Tahseen
As per your name you need everything in plate ready to eat like your name Tahseen appriciated....
You should advertise by diff mean to get only direct seller who wants to sell their homes then you should visit and set target in which rage you want to buy....Go and get it as you will be approached many direct owners who also want to avoid third party....
Further you have to set your target for renovation and get good contractor who can design well and do withing your expected range.
You wil now have two amouts in hand and then match market price and see difference which will be your profit and then you can start gradually.
Further no one can say himself or any one can take risk to recommend you any contractor so you have to have trust and you will find one like you want.
Hope it will be helpful....
Regards
dSA
I want to be renovation for my house work as follow
It is 5 marla house single story with rear side a low roof I need to be demolished that area and level the roof
There is no stair make a stair case
3.change all flooring
4.change all doors and window
5 change all pipe likewise water ,gase , sewer
is there is any body make a contract or do it on daily wages please send me the detail on my email ( muzaffarsame@yahoo.com )
Thanks'
Best Regard's
Muzaffar
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