How to Make Money by Investing in DHA Valley Islamabad
DHA Valley Islamabad is a very uncertain real estate commodity which attracts a host of investors due to a number of appealing factors including brand name, location and prices. There are also some factor which cause buyers to stay away from this investment due to a number of negative factors including DHA-Bahria joint venture, delays in development work and land issues.
If you happen to survey allottees of DHA Valley, you will certainly get negative response since they have been waiting for years hoping that development work will be completed and they will get possession of their plots. Alternatively, if you happen to survey investors of DHA Valley, you will get quite positive response, as they make good money by making short term investments in this project.
These two contradictory reactions from different classes of buyers cause one to think which version stands true as it helps you determine the worth of investment in DHA Valley. The difference in statements is due to the difference in perspectives since investors are normally making short term investments, and involved in buying & selling frequently which helps them reap profits whereas the buyers looking to invest for long term expecting the prices will double or quadruple get dejected when they see development status & price history.
We are not saying DHA Valley is the only place which is good for short term investment, there can be many other places i.e. Bahria Town Phase 8 where you can get more profits but the outstanding factors in DHA Valley are its low prices and number of investors/buyers.
If you say there are 1000 people with purchasing power of 30 lacs and above, there will be more than 10,000 people with purchasing power of 10 to 15 lacs. So the number of potential buyers is much higher than any other housing scheme. Second important thing is that most of the dealers sitting in Bahria Town and DHA are working in DHA Valley, so the market is quite active which is fundamental requirement for a better investment.
In order to work as an investor, you should know the location of blocks of DHA Valley. You have to keep the following map in your mind which shows the location of all sectors.
Location is all that determines the difference in prices across different blocks, so you have to assimilate the locations and have clear understanding of what lies where. DHA Valley is going to have main access through DHA Expressway which is currently under construction and it is going to lead up to Sunflower & then into Tulip, Rose & Bluebell. Second entrance is through Kallar Syedan Road, which is again a dirt road leading up to DHA Homes after passing through the Oleander Block.
All you need is a little budget i.e. from 7 to 10 lacs, complete information of the society and procedures and a little courage to take risks. You have to keep in mind the following important points before you head for purchasing something in dha valley:
- You should know the status of file if it is fresh open, old open or transferable; purchasing decision depends mainly on prices which vary according to status.
- Never transfer file to your name; it is recommended to keep files open as it doesn’t lose value and sells easily.
- You should know how many installments are paid; files with 11 installments paid are a bit more expensive than those with 12 installments paid.
- You should know if it is verified or not; you have to get it verified before you purchase.
- You should know how to check and tally payment receipts’ numbers with the ones listed on the file statement with dates.
- You should know how to check if payment receipts are original or copies; value decreases if original receipts are not available.
- You should always go for an open file except when you are getting a transferable file very cheap.
- You should know which blocks are in demand; normally central blocks of DHA Valley surrounding DHA Homes are considered better for investment.
- Avoid overseas blocks except when you find something very cheap.
- Category plots (Main Road, Corner) are a bit expensive but demand for such plots is also higher.
- Files are sold on profit or loss, so you must know paid amounts beforehand in order to judge how much can be paid as profit or how much can be reduced from actual paid amount.
- You should not be driven by greed for high profit; your average profit margin can be between 20 thousand up to 50 thousand rupees per file.
- Keep in touch with other investors like you and different property agents in order to keep the wheel rolling.
Once you understand the above listed points, you can proceed to purchasing something from the market or from any friend/relative or from anybody else selling his file. It will require some time to search for options in and outside the market but it will help you get something at better price. Normally those investors who have little time to spare for property buying and selling hire property agents to do purchasing for them and share profits. You need to have good understanding of market price of each block, as your offer for something will determine how much you are going to earn out of that file.
After you purchase a file, you can put it up for sale immediately by adding your profit. Since files are open, you do not incur any additional cost for purchasing anything. It is important not to wait for months hoping that prices will double as that will be a wild goose chase. You will get buyers from the market or from outside who will be ready to buy your file. If you are getting some reasonable profit, you should sell out. If you continue this practice, you can expect a reasonable monthly income from this business.
If you want to become an investor with as little amount as mentioned above and you want to discuss in detail about the venues of short and long term investments, you can leave your comments below or contact us using the information given on the contact us page.
I have some 4 million to invest. I want to invest it in two parts. After my research, I have found the following two investments plans attractive:
1. DHA valley 8 marlas (any of oleader, lily, daffodils, magnolia, sunflower and bluebell blocks) (costs around 13-15 lacs)
2. DHA phase 2 extension 1 kanal plot (costs around 24-26 lacs with 1465000 balance).
The advice regarding the investment in mentioned schemes or any other better plans are appreciated.