Confused between 2 options of investment

[Massive_One]

major problem for most of people....is that amount of 5 millions are shown in tax returns ..if yes...its best option

if not you cannot invest as you won't be able to open your investment account anymore with them as you don't have income tax return for such amount or source of income...

if a person is expat and wants to invest like such, then what's the procedure ?

[pwuser157518398767]

Hello everyone.i am stuck in the same dilemma.where to invest 40 lcs so a parallel stream of income

[Luke_mani]

The best option is commercial property, in a safe location which can be rented out. Commercial property has higher rental yields, low maintenance cost and higher appreciation. You should check out Bahria Karachi for commercial options.

[anon36782927]

This post was flagged by the community and is temporarily hidden.

[abid110]

5 million in mutual funds - one gets 40-50k/month which will mostly be consumed on a regular basis - means after a year, the 5million will be 56lacs assuming 50k/month return which remains un-consumed. the increase is good - however, if such amount is invested in property, this principal will actually multiply - talking w.r.t property boom in Karachi. a plot bought for 20lacs 5-years ago can easily be sold for over 12-13millions today. so, lets talk about multiplying the investment and not just increases. talking based on some personal experiences in karachi scene. btw i myself invest in MCBAH and have good experience with them.their 'Pakistan Income Enhancement Fund' is good!

[Massive_One]

5 million in mutual funds - one gets 40-50k/month which will mostly be consumed on a regular basis - means after a year, the 5million will be 56lacs assuming 50k/month return which remains un-consumed. the increase is good - however, if such amount is invested in property, this principal will actually multiply - talking w.r.t property boom in Karachi. a plot bought for 20lacs 5-years ago can easily be sold for over 12-13millions today. so, lets talk about multiplying the investment and not just increases. talking based on some personal experiences in karachi scene. btw i myself invest in MCBAH and have good experience with them.their 'Pakistan Income Enhancement Fund' is good!

actually there are a lot of fraud cases in property especially for newbies, hence their hesitance in investing in property .. whilst investing with a bank seems relatively safer (yet less yielding) option : (
especially for someone who is not in Pak to look after the property, etc...

[SER_GTR]

he shld become filer and might 1st declare all that saving in income tax return ...

if earn outside OPK.....shld def proper money trail and then he can do ahead...!

CGT(capital gain tax) deducts on such income if you withdraw or convert anytime within 4 year ...so being filer and proper money trail back to pakistan is best approach for such investments

[abid110]

yes, there is fraud even in 1-liter of milk we buy from open seller. but let me assure you there are big estate agents working with full confidence and satisfaction very fairly. one should invest in original registered/recognized societies. there are many societies now which belong to specific communities and chances of 2-numberi is almost NIL here.

[Massive_One]

since we are on the topic... has anybody any experience regarding Bahria Orchard Lahore.. They have these Bahria Homes and 5-marla plots installments schemes going on .. is it a safe bet? anybody have experience regarding Bahria Orchard ?

[Sarkaar]

Property investment is always a long term investment and its value depends on economic cycle/activity. It usually follows after stock market surge. In past 5-7 years property market went crazy and reached its peak, now if someone bought a property for 10 million it isnt selling easily or chances are less that it will appreciate to 15 million even in 2 years with current economic conditions.

Your best option is to invest 4 million in risk free mutual fund and 1 million in stock mutual fund. Take out money after 2 years and invest in real estate, i think that will be the better time to invest in real estate.

[Fayaz02]

Your best option is to invest 4 million in risk free mutual fund and 1 million in stock mutual fund. Take out money after 2 years and invest in real estate, i think that will be the better time to invest in real estate.

Why do you think it is not a best time to invest in real estate ?

I purchased a house 80 yards, ground plus one, old construction in 75 lakh about one year ago. Now market value of only the plot is 110 . Too much increase.

[Sarkaar]

As a whole property values are not increasing check rates of scheme 33, bahria town, dha city, scheme 45 (Karachi) and you will know. Particular area value can surge due to local development and facilities etc.

The other issue is control of black money coming into the market is now limited due to benami accounts monitoring and FATF has specifically ordered to control black money in real estate. I dont see in short term 2-3 years property rates will increase as a whole.

[saqibsnk88]

میرا خیال ہے آپکو گاڑیوں کے کاروبار میں دلچسپی لینی چاہئیے اتنی انویسٹمنٹ سے پارٹ ٹائم کام کرکے باآسانی ڈیڑھ سے دو لاکھ کم از کم کمائے جا سکتے ہیں

[musalmankhan88]

Regarding Mutual funds' it is a good option' but you have to keep in mind that profit would be slow and steady. Islamic funds are good and meezan and ubl,s alameen are leaders. Nafa is also good but i dont have experience with nafa. With money market funds your return is almost fixed which nearly matches inflation. With equity funds return may increase or decrease depending on market status. Stock market is also similar to equity funds but needs more effort and insight from you.
Mutual funds are good passive income source when deposited sum is handful

[musalmankhan88]

Return on money market funds was good last year' but not so good with equity/stock funds. However this year results will probably be different for people.who already are in equity as it is rising these days.

[Fayaz02]

میرا خیال ہے آپکو گاڑیوں کے کاروبار میں دلچسپی لینی چاہئیے اتنی انویسٹمنٹ سے پارٹ ٹائم کام کرکے باآسانی ڈیڑھ سے دو لاکھ کم از کم کمائے جا سکتے ہیں

Kaisy ?

[fatima.abbasi388]

Its a good question & I am sure many people are stuck in this dilemma therefore I will try to elaborate as much as I can.
Lets start by looking at your circumstances? i.e. what do you need the most capital appreciation or monthly cash flow.
In my opinion its the cash flow which will make you get free from this rat race of 9-5.

Lets say we invested this 5 million in cash generating business, we earned 50k per month therefore its 600k per annum i.e. 600,000/5,000,000 = 12% per annum therefore 60% for 5 years.

At the end of year 5 we will have 3million in cash earned and 5m original investment. Therefore we earned 3million without even releasing the original capital.

Hope it makes sense and helps

[ahmed.shaikh1133]

It has been very constructive discussion, I have couple of options now to choose from. Since my objective is monthly cash flow, I'll probably opt for mutual funds or purchasing a flat and rent it out.

[abid110]

@Sarkaar i still insist that right property at right place in Karachi is a diamond even in this economic scene - a 200 yard plot can still be bought within 5million in a far area of Scheme-33 and waiting time of 2-3 years - and expect a 3-times increase after that. no other investment gives such returns here in Karachi. bahria, maymar, dha, taiser town, hawksbay schemes etc are dead schemes w.r.t Karachi scene. i am talking about right investment based on multiple personal experiences

[ahmed.shaikh1133]

@abid110 Could you please name such societies in Scheme 33 where a 120 to 240 Sq yard plot can be bought in 5 million?