05-14-2007, 05:14 PM
Dear,
Property has always been a good option in Pakistan. In earlier days, agricultural properties were more emphsized but now commercial and residential properties are the best option to invest.
There are so many reasons to invest in real estate like the fact that there are huge black money resources with investors of Pakistan. You will amaze to see that mill owners' and big politicians' tax returns show very meager income levels and tax to be deposited. The people who are the owners of billions/millions are behind the professionals in personal income tax payments. Since their income tax and income are very nominal figures they have to maintain their wealth statements by way of foreign remittances received through proper banking channel in Pakistan being exempt from every taxation inquiry and levy. They create their sources through these foreign T.Ts and then invest it in real estate having least tax consequences for them. Income from real estate dealing is subject to provincial levies and there was no big income tax levy since years. For this reason, every big fish was inclined to invest in real estate, to manage its wealth statement without having any impact on taxable income.
Again they show lesser prices of real estate to save stamp duties etc (for buyers). This as a consequence again reduces their wealth than the original figures and black money is created. Again this black money is routed through foreign T.Ts and source is created in wealth statement. This viscious circle always remain in operation.
Since all the big investments are being made in real estate. The players of this field will never let this business down becoz there is billions of stake of big players.
Thats why I prefer the real estate on all other options.
Moreover, this is the investment which always have an intrinsic value and is not merely a promise to get some thing on a future date. Rather, it is an asset which is always with u and is always in your control.
Last but not least, real estate investments have shown biggest profits during last ten years and the SBP policies are not so effective to reduce real estate investments.
Best regards,
Kamran.
Property has always been a good option in Pakistan. In earlier days, agricultural properties were more emphsized but now commercial and residential properties are the best option to invest.
There are so many reasons to invest in real estate like the fact that there are huge black money resources with investors of Pakistan. You will amaze to see that mill owners' and big politicians' tax returns show very meager income levels and tax to be deposited. The people who are the owners of billions/millions are behind the professionals in personal income tax payments. Since their income tax and income are very nominal figures they have to maintain their wealth statements by way of foreign remittances received through proper banking channel in Pakistan being exempt from every taxation inquiry and levy. They create their sources through these foreign T.Ts and then invest it in real estate having least tax consequences for them. Income from real estate dealing is subject to provincial levies and there was no big income tax levy since years. For this reason, every big fish was inclined to invest in real estate, to manage its wealth statement without having any impact on taxable income.
Again they show lesser prices of real estate to save stamp duties etc (for buyers). This as a consequence again reduces their wealth than the original figures and black money is created. Again this black money is routed through foreign T.Ts and source is created in wealth statement. This viscious circle always remain in operation.
Since all the big investments are being made in real estate. The players of this field will never let this business down becoz there is billions of stake of big players.
Thats why I prefer the real estate on all other options.
Moreover, this is the investment which always have an intrinsic value and is not merely a promise to get some thing on a future date. Rather, it is an asset which is always with u and is always in your control.
Last but not least, real estate investments have shown biggest profits during last ten years and the SBP policies are not so effective to reduce real estate investments.
Best regards,
Kamran.
