Speculative vs genuine investments

Buying Property Investors Advice
#1

It seems speculative investments give quick benefits to some but leave many people crying after some time. Very smart people and invisible hands make real money out of speculative investments. We saw people followed the trend toward b-17 and other societies which are miles away and non liveable for many years.Even societies like bahria enclave, gulberg,mpchs and btk seem to be born for only speculative mindset. They keep on delaying real land & homes and spinning people on just investments on air.Dealers playing tricks like buy this ,expected possession after this months and you will be billionaire suddenly. In actual possessions are normally delayed for years (or centuries :) ). This is interesting game for some people of course but leave many crying later specially people who are dreaming for their homes are hurt very badly.

On the other hands we see places which are less distant like ghouri, pwd and even with bad infrastructure they are able to cover the heads people. People who invested there are real winners as they get reasonable profit every year and also get chance to develop "real homes" (not dreams) to live in or create rental incomes.

Please see the recent episode of hasb-e-haal where azizi acted as "topi" society owner.

Http://www.Dailymotion.Com/video/x30rrwj

Watch from 26th minute.

#2

Greed is the killer baby. You cant become millionare overnight. Do your homework before listening to ANY estate agent. Chahay wo app ka bhai hee ho.

Happy Independence day to all. Advance mein

Achon ko bhi aur dhokay bhazon ko bhi

#3

Don’t announce your problems to the world looking for sympathy. Most don’t care, many don’t want to hear them and some are glad you have them. Address your concerns to Allah, He’s always there and only HE can help

(saying of scholars)

#4

This is fact that speculative investment always keep market alive, and active. On other hand side genuine investments will take years for result to come out.

#5

I am completely lost here. Someone should help me understand the basic theme of this thread. Is it that speculative investment BAD because genuine buyers suffer in those projects, or is it that kachara projects like ghauri town and pwd are better than BE, Gulberg and MPCHS because people can finally build a house there regardless of ugly development and maintenance standards.

Well, the answer is obvious: Mediocre should get married and settle soon. Top models shouldn't hurry, they have whole fun life ahead of them.

#6

Great answer! Isloo.

Even top models have to marry in their late 30s and 40s normally with an ugly but rich guy.

Owners of lower grade projects mostly have easier exit and quicker+easier rental income from millions of people searching low cost places to live in urban areas. Lower grades projects are also capable to generate business anyways.For a real example a person invested 1million took more than 3million out from Ghouri town in mere 3 years. He does not necessary like to live there though.

My opinion is that people who are following the speculations surge should consider the factors of livability as well.

MPCHS could be live-able/populated after 5-6 yrs after MA functioning that might even take 5 or more years.

In Bahria projects.BE could be live-able/populated after 3-4 years due to their trademark facilities but it can only happen if they provide possession to lower size plots and apartments. They keep delaying though & can even take 4-5 years possibly as seems from their body language.BTK can even take 25 years after possessions. BT phase 8 price and population do not justify the facilities provided there because distance is even big from rawalpindi. Gulberg can also take 6-7 years.

#7

You are right in your logic ,but this is the way it is, as every greed rides on some ones miseries ,for this world runs on impatience ,and those with genetically hypocritic lineages(speculators)sucks the blood of those unguarded dreamers who trust them(speculators) in hopes and some times in greed and ends up in shedding tears.

#8

You cannot have boom and busts if there is no speculation. Ya for investors speculation is heaven but not for the genuine buyers as its bubbles the market and make prices unaffordable. Look back in history when there was negligible speculation in real estate markets, there were no boom and busts as we see now. Anyhow its happening everywhere in the world namely Spain, Japan, USA, Canada, China etc. So Pakistan is nothing special. Also speculation is not a major culprit as you say but corruption. Speculation can be regulated but unlike high corruption in Pakistan it is not. And you should be more worried about money being taken away to Dubai from Pakistan or illegal societies that exist in Islamabad/Pindi alone being more than a 100!

#9

A 1-kanal plot file in F-4, phase 8 bahria town was less than 15 lacs in early 2012. It reached to a price of 70 lacs at one time and now when everything is at the bottom, it still is around 45 to 50 lacs. All the speculation to inflate prices is not there now, but the price is still more than 3 times compared to 3 years ago. Also the area is levelled and going to be ready pretty soon for possession and building the dream home in the dream society of bahria town. This is an example that prices appreciate in good societies as well and people build houses too … Areas in multi orchards have also been given possession and people can build. Experts with more knowledge can hopefully give more examples of success in good societies. Avoiding speculation, greed, haste is the right advice and one should follow the fundamentals, but this in no way means that one has to go for a garbage place to do that.

#10

BT ph-8 is really nice if you have social contacts in Gojar Khan :slight_smile:

#11

Spain housing bubble is busted decade ago. The country is really full of for-sale houses/lands but like all European nations population is on decline.

Pakistan population is overgrown.Urbanization & return of overseas families is real booming factor. Builders make their tricky plans to grab money from wealthy overseas investor. But in the end location matters and will always matter. In speculative projects Gulberg and BE seem to have location advantages while BT phase 8, Bahria Golf, commoners valley and DHA Valley etc are very distant. B-17 importance only dependent on MA.

P.S. My personal analysis.

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