Investment Analysis DHA Lahore phase 9 Prism Vs Goldcrest Mall and Residency Lahore
Investment Analysis DHA Lahore phase 9 Prism Vs Goldcrest Mall and Residency Lahore
I have done a comparative analysis of DHA Lahore phase 9 Prism Investment Vs Goldcrest Mall and Residency Lahore.
These investments were made by investors at a similar time and with the same holding period (2018-2021).
The above comparison of DHA Lahore phase 9 proved again the long-standing opinion of Imlaak consultancy that in the long run, rental income properties and construction projects on instalments provided better real value returns than plots.
The concept of the time value of money is a crucial element which you should always consider while making investment decisions, since the decisions you take today decides your and to some extent, the future of your next generation!
In Pakistan, this important aspect is mostly ignored by Investors, and since we don’t have a culture of engaging an investment consultant, we rather ask advice from a person (property dealer) whose interest is primarily vested in the fact that a transaction takes place, whether it’s in the benefit of an investor or not.
Consequently, most property brokers discourage the idea of an independent consultant involved in a transaction with the investor and create a sentiment where decisions are made on impulse rather than with reason.
The Luxury apartment at DHA Goldcrest Mall & Residency not only provided the flexibility of paying on instalments, it specially provided an effective hedge against the PKR devaluation for our valued overseas Pakistanis.
In US dollar terms, the Goldcrest luxury apartment provided almost 80% more returns than a 1 Kanal plot in DHA Lahore phase 9 Prism DHA Lahore.
Plots can be a good hedge against inflation, but not a source of further wealth creation!
Just consider that how many brand new cars of the same model you can buy today? If you have the money equivalent of your plot’s current sale value if you compare it to the value at that time, when you have purchased the same plot. I am sure it will be the same number of cars. e.g. no wealth creation, just value retention!
The Future of both Investments
The Above forecast indicates that a rental income property will always perform better than any non-cash flow generating property.
I have not considered the fact that having regular rental income gives you the opportunity to further invest those amounts into new investment opportunities, which promote your net worth in future.
In the scenario of the above investment Goldcrest Mall and Residency Lahore, if the above 8 million cash which is received in the form of rental income is reinvested, it will double in the next 4 years if not more.
The conclusion I presume from the above investment analysis is that the best policy in real estate is to purchase assets on instalments and those assets should have the potential to generate higher rental returns once the property is ready for use in the time span of 3 to 4 years.
The above approach will assist you to reap the benefits of high capital gains during the maturity/project completion phase and also generate better cash flow with respect to the amount invested.
Follow the footsteps of the most successful!
The business tycoons of our country are investing in huge malls which are constructed using bank financing arrangements payable over many years and not a single shop or kiosk is sold at such malls whether is the packages mall, the Emporium Mall and other such projects.
Ever wondered why they don’t sell such shops when there is always a long queue of buyers for such properties? Because they know the value of regular cashflow income in the form of rental returns.
How Imlaak assist you in providing necessary consultancy advice for property Investments?
Join our unique Asset Management Consultancy Program. The 1Crore Challenge!
We provide the below services along with many more to our valued investors who decide to join this consultancy program.
- Investment Consultancy.
- Property Management.
- All assets under your name at all times.
- No Extra Fees.
- Resale Assistance.
- Free Legal Assistance.
- Free Document Management Services.
The below video further explains the details of the program.
Contact, meet or have a video link meeting with us to discuss your investment-related queries.
Rehan Ahmed
Director
Imlaak.com
M | +92 300 3365522
E| rehan@imlaak.com
