Agency 21 Investment opportunity in ISB

[dice88]

Anyone aware or has invested in agency 21's G-11 hotel project? They're offering 50k rent on investment of 5mil. You get paid from day one and can pull out the cash anytime you want. Really seems too good if true. Any inputs will be highly appreciated.

[Luke_mani]

Life's lesson - 'If something is too good to be true, it usually is.'
Try to get hold of the purchase agreement and discuss it with a lawyer. Visit the project.
Several developers gave deals like these... I even visited the Emaar head office. They seem too slick and sure of themselves so I gave it a pass.

[dice88]

Yeah for sure. I have their agreement and will discuss with my lawyer. There's nothing on ground apart from one crane standing in their site as of this morning. It definitely is too good to be true.

[Luke_mani]

Do keep this forum alive, after discussing it with your lawyer.
*50,000 rent on an investment of 5 million. That's 12% roi per annum. A clean commercial property gives a maximum of 6-8% per annum.

[dice88]

Sure will do.

[anon35615524]

Well, I think, any / all such schemes may be sincerely avoided.

If there is nothing on ground, and a project (hotel, restaurant, apartment, flat, house, villa, etc.) is about to start, or not even started yet, then from where the rent can come? or is coming from?

You get paid from day one and can pull out the cash anytime you want.

Ever read / heard about "Ponzi schemes"? Please Google, and save your hard earned money, in investing in any such schemes.

I hope, it helps and guides. Thank you.

(YES, if the developer is quite big, and have huge funds and good repu, like DHA, Bahria, Emaar, etc., then such schemes can be given some thought, but for Project under consideration, a BIG NO IMO)

[anon35615524]

There's nothing on ground apart from one crane standing in their site as of this morning.

Then from where will they be giving rent since day 01?

Do they also have any other projects too? From where, they might be generating some revenue / income, and giving you as Rent ?

To me, many things seem fishy here.

[dice88]

I do have a suspicion that it's a Ponzi. The developer 'agency 21' just popped up 4 years ago and have their head office right at the start of blue area ISB. They say they have completed florence galleria in dha near gt road (haven't been there yet). The reason I gave it thought is that their supposed project is right at the center of G-11 markaz. And about the rent situation, for 5mil you buy a 50sqft space inside a commercial shop.

[anon35615524]

Dear exercise extreme caution before investing in any such schemes.

When profits seem unrealistic, extremely high, etc., then it may mean that many things could be wrong there.

Human beings have proved that they are greedy and selfish at times, and such companies, agencies, etc. play with it.

If one is investing in any such projects, like related to Real Estates, 1st ensure that the developer is authentic, strong (financially as well as morally, socially, ethically, etc.) and has good reputation. 2ndly, any / all of its projects are endorsed by the authorities, like RDA, CDA, etc., and valid NOC is there for execution of the said works.

If any / all is missing, then better to stay away from investing in any such schemes.

[anon35615524]

If you want to play safe, and have long term plans, then try to invest in schemes backed by SBP, SECP, National Savings, etc., i.e. the schemes / authorities endorsed by the Govt. of Pakistan.

The immediate profits may not be like the ones in Real Estate, but at least, your investment will be in safe hands and secure.

Play safe, stay safe, and take that much risk which you can easily bear.

I hope, all above helps and guides. Thank you.