Buying , Building or Renting a house after relocating to Pakistan? (October 2022)
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- In this video I share my views on Buying, Building or Renting a house when you relocate to Pakistan. I discuss pros and cons of each method.
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Assalaam Alaikum brother i've recently moved a few months ago from UK to PK and currently living in intellectual village in Baria and can say MaShaAllah its very clean and friendly place
Walakumasalam, yes it is a very well constructed area. 👍
@@hassanrafique will be nice to catch up with you brother at some point InShaAllah
Is there an issue with rising utility bills? What are your bills like?
I would love a house plain and simple with all the right fitting minimalist decor no crazy tiles and lights, Izrl would be. Times eerth house with concealed mod cons….. a garden with fruit and veg .
My vote is with you on this 👍
Greate breakdown of options. I have noticed alot of British Pakistanis have houses in Pakistan/Azad Kashmir. It would be easier for them to live in their family home for 12 months and then make a decision of where they want to live.
That is ideal if the space and circumstances allow 👍👍
Price wise, Number 1 Dha, 2 Askari, 3 Bahria but security wise Askari is number one...
When relocating generally it is more recommended to live in big cities or smaller cities like chakwal and Sargodha are also good.especially when one has a business set up in those cities.and other family members living there.
That is correct...if there is a support system around where you live then it is a good option too.
Thanks for the videos..
It really helps to know things in current circumstances.
Thanks a lot for your appreciation 👍
Salaam bhai in shaa Allah I'll be relocating in PK in two weeks and Allhumdullilah I am going to live with my Aunty. Just wanted to say that your videos are very helpful and give an understanding of expenses of living in PK. I was wondering if you could just give a general view of living in PK.
Walaikumasalam Sister
Thanks for your appreciation 👍. I am not sure if you managed to see the 1 year update video series? If you did and still prefer a video then please let me know. Thanks
Thank you very informative video as always. Intitially I was also thinking of buying a piece of land and then building but then I had the same realisation as you that for the 1st year or so it would be better to rent which will allow you to see things with your own eyes and make an informed decision on the next steps.
Thanks for your appreciation 👍. Good decision. I hope you are all settled now
Hi Hassan,
The key question to consider of course is what are your net annual rental costs are as a percentage of the cost of the house ? In Pakistan it was traditionally about 3% pa (vs 4.6% in the UK). The massive inflation and devaluation rate of the PKR are obviously major considerations, and if you are getting a near 16% return (at the current base rate) by simply placing your cash in the bank, buying property makes no sense - unless you are seeking to hide black money which professionals like you are not. The other thing to consider is what your most major future expenses are likely to be? Even if you yourselves stay put in Pakistan forever, your children's education in the west will cost a fortune. Therefore staying invested in foreign currency is likely to be far safer, to guard against the rapid ongoing PKR depreciation. Lastly, even though inflation is currently also very high in the UK (10.4%) this hugely helps mortgage borrowers - because while rental receipts can be easily adjusted to it, your fixed mortgage amount borrowed becomes easier and easier to repay, as its amount becomes worth much less in real, inflation adjusted terms (despite transiently high interest rates.) So the 10% inflation is actually automatically reducing your mortgage loan by 10% year on year, whereas your rental receipts and property value should keep going up by, or at least close to that figure.
@SassySam Please read the full sentence (and of course also the context of investing in Pakistan vs the UK.)
" The massive inflation and devaluation rate of the PKR are obviously major considerations, and if you are getting a near 16% return (at the current base rate) by simply placing your cash in the bank, buying property makes no sense "
The PKR base rate and the return on PKR savings accounts was near 16% at the time of writing. It is now about 21% per annum.
@SassySam Yes! With core inflation at 37% and sensitive price inflation running at 44% it has to be that high!
@SassySam Only worthwhile if you definitely want to lose money, i.e. get fewer pounds back than you invest, upon reconversion! PKR devaluation is much higher than it's interest rate of 21% per year - it devalued by 9.6% in a single day on 26th Jan 2023. If you are looking for high yields here are a few emerging markets high dividend yield index tickers you can consider, yielding about 8.5% to 9.5% pa in hard currency. SEDY, DEM, HDEM, XGSD, HFEL.
Good luck!
Real estate prices are one of the reasons I've had to delay relocating to Pakistan. That's on top of a teetering economic and political situation. Makes it least ideal at this time to move. Of course these concerns are invalidated if as you said someone has a crapload of money and connections.
Indeed brother...cost of living has gone up by almost 40% it seems... you get a feeling when buying groceries etc...
thank you so much your video are very helpful alot of people want to move back to our country
Thanks for the great videos. Very informative and motivating. How has your experience been living as a tenant renting an accommodation in Pakistan? Have you had any bad experiences with the Landlords? What things one should look for when renting a property in Pakistan when moving from UK or Canada? Thanks.
Thanks a lot for appreciating 👍. I have a plan to do a video on both being a landlord and a tenant...I will cover the details in there 👍👍
@@hassanrafique Thanks.
Development standards of Bahria are better than Dha.
Yes , one does find them regularly repairing roads etc. Plus speed of developing new areas is also higher I agree
hi Assalam u Allaikum, hope you are doing well. First of all, I’d like to thank you for making this informative video. I'm also planning to leave Europe for Pakistan. The topic in this video was interesting but unfortunately i didn't found my answer, what do you think about "brand new houses" on sell ? Is the material quality good enough ? i've seen many videos of 1/2 kanal houses and everything seems to be perfect but i really don't know if we can trust those "builders societies" ?
thank you.
Walaikumasalam
Actually I do not have first hand experience or any relatives who have bought a similar house so can't really say for sure. I hope someone from the audience with relevant experience might be able to shed more light. If I get some update information, I will share that via a comment or video 👍👍
@@hassanrafique no prob, thank you again brother.
@@zbfay1349 you are most welcome Brother
Great information 👍🏻
Please make more such videos.
👍
What do you think about investing in a property in Pakistan with a view of selling it for profit in a few years? Is it worth it or do you think it is very risky considering you are transferring money from UK to Pakistan and want to take the money back to UK after the sale.
I think it would be the latter... investment here for long term asset building and consumption locally would be the main route.. otherwise RDA is an option too...one can on paper send back money worth $1000 a day but in practice it is a hassle based on the experience of a friend who had to sell off their plot...
Great advice.
Thanks for your appreciation. Your's and other viewer's feedback on various topics are the key 👍
You have done expenses videos and just for ball park since you left UK, 18 months expenses Do you think some where around 50-60k USD for 18 months including all initial and on going monthly expenses is good number.
Then 20k USD per year for on going expenses is good number.
@@Caddy804 I would say around 40k is more representative
@@hassanrafique Dear as you mention 40k USD .its only happened when you don;t have any living place in pak. in my suggustion if you got joint family house try to live there then your monthly expense would be at least 250K PKR and if you plan to live alone then buy house and install solar system on your house top it would bring your exp under control . its my oponion regards
Is it worth living in uk to get ilr on tier 2 ( out of own z comfort zone) as compared to comfortable life already in pakistan
moon rose you can take that decision if you are british or other european national do not close your doors so first get your naturalization then take this kind of decision its look simple but take lot of other factors