Construction is already started and labor has started the work, but no official ceremony yet.
I did start this thread out of frustration at very slow appreciation in B17 prices. Things have of course changed now and I hope this is a long term positive change. I didn’t sell in B17 only because I am too lazy and too busy to do so.
The downside of investing in plots is that this is a dead money for the investor. It’s not a rolling capital where they can skim some money out of the profit and let the rest of capital grow. Even if the plot price goes up , you can’t use any of this profit unless you sell the whole lot and of course as soon as you sell , the prices go through the roof and your next generation keeps regretting dads bad decision forever. Hence this is a bad investment overall , for small investors. Unless of course you have 5-10 crore liquid , surplus cash and you buy and sell quickly opportunistically. Small guys don’t enjoy profits on their one or two small plots in their life time. Always wondering to sell or hold a bit longer.
You are not alone in this. Most of use who have invested in property for over a decade feel the same. But then after getting stuck multiple times and selling little too early, or impulsive buying decisions, I have come to the following conclusions.
1. Property investment is the same as investing in stocks. Where, the only way to win is long-term. As per my spiritual guru Warren Buffett, minimum duration to hold value stocks is "forever".
2. One must not put all money in residential plots only. Spread on:
(a) capital gain property (plots)
(b) rentable property (shops/offices/flats)
(c) stocks & mutual funds
(d) gold/$
My hunch is that if you allocate 40% to (a), 30% to (b) and 30% to (c) & (d), then you have not blocked all your money in a fixed asset class that although grows in value but does not give any dividend (anday bachay nahin datey). And that makes you a "rich-poor" man. You may have plots worth crores but no money in pocket.
Items (c) and (d) are highly liquid, that is, you can buy and sell any time and in any denomination.
Many young and novice investors do not realize this, they invest blindly and get stuck. Yet others, fall in the trap of files or construction investments and loose their precious hard-earned money. So, if you are just starting as a property investor, then do think about liquidity and dividend.
@Wajahat bro, everyone has his/her own experience and information to share. We are all learning from each other. No one is guru. The titles of guru, authority and expert that zameen grants are misleading. It just counts the number of post and not quality of contents.
So everyone should contribute. It doesn't make sense that only few of us are making noise all the time.
Isloo bhai gold and stocks are also the same i.e you are not sure if to sell or to hold. I have no personal experience in it but I think investing in commodities could be an answer. You buy tons of wheat for example during the harvesting season , pay the farmers cash and then you sell few months down the road. You know you have to sell and not hold as if you do hold , you will lose money.
Zafar sb
You are saying a physical buy or buying in the commodity market?
Physical buy
Some people make millions buying and selling نِبو
at the right time. I am not talking about hoarding but to buy and sell at the right time.
Zafar ullah bro,
Trade is real business and source of great barakah برکت if done with a clean heart and mind. That is:
- no hoarding
- no exorbitant profit margins
- no lying or cheating
- no adulteration or harmful substance
- accepting sale return without question
There's an old saying that Allah has put 9 parts of rizq in business/trade and 1 part in services (jobs, etc).
Zafar sb
You are right. My nephew is in the " Ataa chakki" business. He has three units in Pindi and buy wheat from central Punjab and sells in Pindi market. One chakki unit is giving him min 50,000 net profit, apart from wheat trading in local market.
He resigned from a lucrative job in gulf and earning good in this business.
{Trade is real business and source of great barakah برکت if done with a clear heart and mind. That is:
- no hoarding
- no exorbitant profit margins
- no lying or cheating
- accepting sale return without question
There's an old saying that Allah has put 9 parts of rizq in business/trade and 1 part in services ( jobs, etc).}........ THIS IS THE ONLY SECRET OF A REAL SUCCESSFUL LIFE in all respects.........
The only point i can not convince myself mathematically is mutual funds or i have no experience of that in real sense and the rest all points mentioned by Isloo bubba are brainy and convincing in our country.....
General Trading(buying and selling wheat, rice etc) in Pakistan: It keeps you busy full time and a positive sign..... But Mathematically In five years of trading, two and half years of your profit will be adjusted in currency devaluation and the rest two and half years of profit will be your real profit....... what i mean to say is that currency devaluation is the big big hurdle in successful trading business....... As per my calculations a general trader gets full return of investment in seven and half years instead of five years in Pakistan....... except in cases when you have a unique Idea or invention in trading earning huge profit margins ........
@Ilyas
Sir currency devaluation is the issue with all sorts of investment not just trading. Even if you have a rental property or a plot that is on the rise , you will always be mindful of currency devaluation. The positive side of trading that I see is that you keep getting hold of liquid cash frequently and you can part utilise it to improve your life style or to run your household. This is unlike investing in a plot where the price maybe 10 crore but you don’t enjoy the gains , unless you sell it but if you decide to sell it , you won’t because it is still going up , so you hold. This is the dilemma
Zafar sahib, In trading in a specific field the growth is specific and uniform with minor changes depending the market spending trends so the currency devaluation is big factor, in real estate in Pakistan currency devaluation is smaller factor in most cases due to higher jump in property worth......
Trading much depends on experience, personal relationship and Market trust than the investment itself.... As per my experience trading is good enough to KEEP THE BALL ROLLING in Pakistan.... House holding will be easy but life style changing will require longer time in trading.....
I would suggest real estate cum trading to keep busy........
Poor Rich: you can avoid this situation if you have rental properties to have monthly income, i have rental properties to have enough monthly rent but isloo 1 i am still poor rich as i have engaged commercial properties on installments and the rent goes back to the installments..... i would suggest the balanced mathematics than the tougher one..... in balanced mathematics you have to let the banks enjoy your money & you can have liquid cash where in tougher mathematics your money never see the doors of a bank(as per Isloo 1, Cash is the king, so you will have to suffer in tougher maths)......
So guys back to the topic, Is this a good time to exit B-17 and FMC, now plots have gain almost 35%-40% in last 6 months, 5 marla plot in FMC is now around 50-60 lac. So should i exit it and move to I-15/3? or I should wait more?
Nasir sb
B-17 with MA is like RRR & solid plus B-17 much more in development than I-series.
B-17 going to be a gift for zone-2 after MA.
If you have multiple plots in B-17 then you can diversify otherwise B-17 likely to give more with MA ongoing progress, In Shaa Allah.
I-16, probabaly will rise better than 15 (personal view). If and whenever any ground breaking of Golra Mor happens, the momentum will shift towards tail end of I-series. Till then, B seems better.
E-12 to also look out for in coming days...
Correct I-series may prove better but MA is reality and golra more flyover is in air...
May be or may be not, though it's materialisation seems factual.
But one hand is better than 2 in the bush.
Imtiaz Bhai, E-12 5 marla cutting plot are now touching 15-16 million, without cutting and disputed area plots are around 12-13 million, work is stalled right now, so i think E-12 is bit risky at the moment.
Does some one have an idea of Ch. Majeed land dispute with local khans?
Every project has its own time and this is B-17's time, no question about it. Anyone who exits now, will live to tell stories to his kids, how he missed a great chance of multiplying his investment.
Patience is your only asset in RE investment. (Isloo)