Where to invest PKR 30 million in DHA?

Where to invest PKR 30 million in DHA?

This is the third chapter in where to invest in DHA. This article would help you in making decisions regarding properties quickly in terms of investment which you might have. This would focus on short, medium and long term goals and a mix in some cases. This would focus on primarily a single good trade coupled with a small trade in some cases. Given are a few options with the analysis in the end.

1. A 9 town commercial 4 marla file

• Phase 9 town commercial file is going to be a very good investment in the near future as CCA 2 Phase 6 prices have gone up and continue to go upwards. With the budget allotted for expansion of Bedian road these commercials will only be marginally below CCA 2 prices once balloted and given possession. The gap of prices which exceeds 15 million will eventually come down to just around 5-7 million. This trade is bound to give a good profit but the holding has to be until ballot which is expected in a maximum time frame of 1.5-2 years. To invest in the file would be a very good addition to one’s existing portfolio or a good start for first timers.

2. A park view commercial file with a 9 town plot

• Park view commercial file is another underpriced commodity in terms of relevancy to the existing commercial plots. This file near ballot will increase in price and once the plots are available in the market it would add a price increment of roughly 15 million. 9 Town on the other hand boasts possession and is quite underpriced at the moment. It is expected to get better soon which means that a short term trade is in position. These both would give you a return of around 16 million altogether if trades would take place in a timely manner. The commercial file is to be liquidated once the ballot takes place. Don’t wait for the first turnover as the prices would be high, although it would increase after the first trade takes place but the return on investment ROI wouldn’t be as great as expected.

3. Rahbar commercial file with a Phase 8 Y block plot

• DHA Rahbar file would be a medium trade investment in itself couple it with Phase 8 Y block 8 or 10 marla you got yourself a solid investment mix. Phase 8 Y block smaller plots would be given possession soon enough. The Rahbar file rumors are that it’d be balloted in the next 6-12 months. DHA Rahbar when the southern loop would be completed it’d be a great investment as the commercials will be launched on the main Defence road not only catering to DHA Rahbar residents but also to the surrounding societies and areas. It could be beneficial in both terms for long term holding as well as liquidating it once balloted.

4. Phase 8 plot with 9 Town plot

• Phase 8 prices have toppled in today’s market which means it’d be easier to get a bargain as of today. 9 town plot as previously mentioned would definitely go up in times to come although the ROI wouldn’t be as great compared to other options but on a small investment this is a very safe bet. You can always liquidate it when you require the money to invest elsewhere.

5. Phase 7 file along with Phase 8 Y block plot/Rahbar residential

• Phase 7 file could turn up to be a short, medium or a long term holding connotation as you never know when the plot number will be allotted with the Phase 7 file. A comparatively safer bet with good return on investment would be to couple it with Phase 8 Y block 8 or 10 marla as explained before. Rahbar residential file would be also a good investment once balloted as the plot is of around 40-49 lacs. Phase 7 file once balloted into a plot the price would be 270-290 lacs.

6. Phase 8 Air Avenue Commercial plot

• Although slow growing Phase 8 Air Avenue is a very good investment in terms of a rental commodity, the only good commercial option available within this bracket. It had been on a low for quite some time, now the prices have increased and we are looking at more requirement for commercial activity as the populous grows. Without much risk this would be a relatively stable investment on which whenever you have the cash you could build your own building and start a rental income.

Conclusion:

In the options discussed above we could see that the foremost priority form an investment point of view is the 9 Town file, to invest in Phase 8 Park View file is a second option, third best option is the Rahbar file which I believe would be a good investment in the longer run as well because of adjoining areas, fourth option is the Phase 8 Air Avenue plot which is safe, secure and can start generating a rental income almost immediately, Phase 8 option is the fifth priority as a steep jump is expected in the price but it’ll stop at a point for natural growth to take place after the quick jump in price, last option is the Phase 7 file because of it’s volatility.

All these options except two are coupled with a solid investment which would minimize the risk of the other major investment known as an investment cushion. For more discussion feel free to contact the author.

Written by:

Umer Shehzad

(+92)3208484630-03004679010

Managing Director at Imlaak

MBA Finance (Cardiff University, UK)