Empty properties. turning loss to profit

Empty properties –  turning loss into profit.

 

Empty properties are those properties which are not rented and no one is living in them. Those empty vacant buildings which are incomplete and are not used since long time. These properties can be identified very easily. The typical signs of empty buildings are trash in front of the building, dried up and overgrown lawns, dying trees, windows with boards nailed on them to secure the building and worn out paint. There are a lot of problems related to empty houses. There are thousands of houses empty in our city. In Japan there are 8 million empty houses. In UK there are 200000 empty houses.  In Paris there are 100000 vacant properties.

On one side there is a high demand for affordable housing on the other hand there are a lot of empty properties. Some of them are those incomplete buildings which require more construction. These buildings are everywhere. Ask any one and he will tell you about some of these properties which are vacant since his child hood. For example there is an uncompleted plaza right in front of the “provincial assembly house” Quetta. It is in incomplete condition for a long time and still vacant. We don’t know why it is incomplete, but it is a diamond in the rough which requires some attention. Another example can be Baldia plaza. Baldia plaza has an ideal location but most of the shops and offices on the upper floors are empty. serious measures need to be taken to convert this loss into profit.

 

Why is property empty or not in use?

One of the basic reason is lack of proper systematic communication. Or the lack of an experienced real estate dealer. Some property owners think that they can do every think on their own and they don’t involve property dealers. When the empty house remains vacant for a long time than the landlord go to property dealer and ask him to find a suitable tenant.

Sometimes these properties are empty for no reason. It’s only because of the negligence of owner.

Some people say that they are rich enough that they don’t need to rent out their properties.

Sometimes the owners cannot afford to fix their property because of lack of funds. No maintenance.

The owners lives in another city or another country.

The property may be owned. The owner took a loan from bank and could not repay his loan. This kind of property is one of the most problematic one. It is hard to locate the owner and even harder to help him.

Inheritance is also one reason these houses are empty.

Sometimes the owners hold that property as investment and wait for its price to raise.

One of the reason the property is vacant for long time is because the house owner is looking for a good tenant.

There are various reasons why house, apartments and plazas are empty.

 

Disadvantages of empty properties

Empty properties can be a burden on the society.

It can attract vandals or criminals causing serious issues for the society and the vacant property.

Vacant houses deny living space to those people who are in real need.

It creates problems for the clean atmosphere

Too many empty houses decreases the price of other houses in the same area.

Empty properties create problems for the neighboring properties like seepage dampness etc.

An empty house can be a burden for the owner.

Financial loss. Because the owner is not getting any rent.

The owner spent more money on the house in the form of utility bills, watchman’s salary, property tax and maintenance charges.

 

 

Benefits for land lords and owners for renting their houses.

They get monthly rent.

The value (price) of the house increases.

Capital value of the house increases.

Chance of getting a better offer for the property as it is generating good rent.

No more in security in the empty house. No watchman salary to be paid by the owner.

 

What to do?  (Solutions)

The government must make councils that carry out an extensive research and find empty homes.

Local officials can come to know about these vacant properties through neighborhood research, registration, property tax and other means. Electricity and sui gas bills record also show that which properties are empty.

These councils (committee) must than come up with a proper plan how to get these houses occupied.

The government must impose tax on all those houses or properties. if a property is vacant for more than 2 years it must have extra fine. Quetta development authority (QDA) once came up with the idea that all empty plots in QDA area will be fined, because the owners are not constructing the plots into houses, and they are becoming a spot where people throw garbage.  In 2015 20 percent tax was imposed on the fair market value of rent of a vacant house in Paris. This year that tax on empty house was tripled to 60 percent. This generated some extra revenue for the city of Paris which they used to make affordable houses.

Maintenance companies should be involved by the owner of the property.

Dealers must be contacted to find proper tenant for the house. Who stay in the house for a long period?

Watchman is very important for vacant properties.

Tax free loans should be provided by the government to bring back these empty houses in shape. This kind of loan is called house to home scheme in UK.

In England the government charges 3 percent extra on the purchase of a house if the purchaser already has 3 houses.

Another easier solution is to Contact makanpoint.com for advice.  We are here to find the right tenant for your property.

We can tell you about different ways you can raise some funds for your empty property.

 

Councils that work for the betterment of empty homes.

Wigan council in UK helps empty homes to get on the right track. They repair old empty houses and rent it out to people. For example When Mr. John inherited 3 buildings from his father. He didn’t know what to do with that because the buildings were incomplete. So Mr. John applied for an interest free loan. Wigan council provides loans funded by the homes and communities agencies. Mr. John used that loan to complete his buildings and made apartments in the building. The apartments were than leased to wigan council. The loan was paid back by the rent of the apartments.

This loan scheme is used to reduce the number of empty houses. Which is becoming very useful for the people.  Wigan council in UK is also using other methods for the betterment of society.  They also charge 150 per cent tax on houses that has been empty for more than 2 years. They also sell empty houses in auction.

Wigan council helped 22000 homes to remain rented and occupied.

The councils also send questionnaire to the house owners to know about their problems.

Councils help you know what kind of repairs are needed for your empty house.

Councils make estimates of the costs.

Councils provide information about workers and contractors to the owners of the house.

Councils let you know how you can get a loan for your property.

Councils provide you contact numbers of real estate dealers who can find tenants for your house.

These councils in the UK are so powerful that have access to certain kind of legislation by which they can force owner of the property to take certain action.

In Quetta. Municipal Corporation and Quetta development authority can carry out these duties.

 

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Further reading

Also read our article about affordable housing click here. 

Commercial property – how to rent your bungalow to a multinational company

 

 

Prepare your house for the cold winter season

The weather is getting cold.  The winter is coming.  Preparing your house for the cold weather may help a lot. It will reduce your utility bills and keep you warm and healthy. Winter may cause a lot of problems to you and your house. It may vary like frozen pipes, blown up water heater, leakage in the roof during rain and so on. It is not just the cold winter season. sometimes winter comes with heavy rain, snow and storm. These heavy rains can even knock off a tree that can fell directly on a house causing a lot of damage. preparing for the cold weather in advance cab be very beneficial. It is very hard to work on the outside of your house when it is very cold so plan ahead. With a little effort we can prepare our house for the cold winter as much as we can. Prepare ahead for the cold weather so you can just sit back, relax and enjoy the cold weather.

 

Check your heating system ahead of time. Check the heaters and air conditioner unit if they are working properly. Change or clean the air filter inside the air conditioner unit.

Check fire alarms and smoke detectors. Check fire extinguisher if it is in working order.

Warm weather bed sheets to be replaced by Woolen bed sheets and cloths.

Do a massive laundry all the summer cloths, curtains and other summer items to be washed and stored.

Use thick curtains that can prevent the cold from coming in to the room

Working on the pipes. If a pipe freeze and creaks it can cause a lot of problem. All the pipes that are in the open must be insulated with thick electrical tape and foam. It also saves the heat inside the pipes so the water doesn’t get cold too often. Disconnect some pipes if it is not needed like the ones that runs through garden to the sprinkles. Insulate your water heater to save heat. Drain all the water from the water heater to clean it.

Gutter and sewerage must be clean as they can freeze and clog. All those fallen leaves of autumn season must be removed.

Prepare doors and window. Cold air coming from small cracks around doors and windows can increase you bills more than anything. Find out all those small holes. Seal all those small holes from where cold air comes in. it can be sealed with many things like cement, plastic pares or tape. You can also use plastic sheet to cover windows.

Roof. Check the roof. There are different types of roofs. Make sure there is no crack. Specially check the sides and the places where the chimneys and pipes are.

Clean your fire place. If you have a fireplace in your house clean it and store some wood.

Get some anti-freeze liquid for your car.

Load shedding and low pressure of Sui gas. Have some backup. Kerosene heater, wood, gas cylinder, batteries for converter as ups and solar panels. All these things can provide very good backup in the time of no power or no Sui gas.

Garage and store setup. Clean your car parking. Remove all the things that are needed in summer but not in winter. Remove the tools and spray them with oil to prevent it from rusting.

Wardrobe. Bring the warm cloths and sweaters in front. Warm shoes and socks could be very useful.

 

With these tips you can easily prepare your house for the cold winter season.

House services

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03337854590 – 03448136155
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ubaidullah 03013725006
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Contact us for porperty dealing. click here to view our address.

Affordable low cost cheap housing

Affordable housing means low priced housing or inexpensive housing. Houses which are affordable by the average wage maker. Rent houses where a part of monthly rent is paid by authorities. Housing affordability is the main subject of discussion around large cities. In the 19th century, when cities grew larger, prices of housing become more and more expensive.  The population in Pakistan is growing faster than the construction of new houses. These are institutions in Pakistan which are making low cost housing facilities. But more efforts are needed to stabilize the housing market.

 

The problems related to housing.

There is a huge shortage of houses in Pakistan and especially in the city of Quetta. This shortage is growing with time. According to one survey, 90 lakh houses must be built in Pakistan to overcome the shortage.

As being related to real estate, I have been to such tiny apartments that most people reading this article cannot even imagine. I have seen all those dark dens which people call home because they don’t have any other choice. Have you ever heard of coffin houses? This is a term used for small living spaces usually shared by tenants. It’s like when people rent a room and make small partitions in it for themselves. Which are not safe to live in as there is hardly a safe exit in case of fire or earthquake. When beds are stacked on top of each other it’s called caged beds. Apartments the size of a prison cell with no windows.  When there is no proper sewerage and children are getting sick only because of bed bugs than the government needs to intervene big time.

Only one percent of property stock is owned by 70 percent of population of Pakistan.

Rents are growing on tremendous scale. People spend a large part of their earning on monthly rent.  Monthly rent for a shop at Shahbaz town Quetta can go up to 1 lakh rupees per month or even higher. locals will have to leave these shops soon and international companies will rent these shops. which will make it even more un affordable.

Supply and demand decides prices.

Developers are making luxury houses while market needs affordable houses. This is very common at the peak of real estate cycle. In January 2016 when the market was in fast mode people were making luxury houses. After the announcement of property taxes developers started to make low cost houses. Because in a real market it is hard to sell luxury houses. The same thing was noticed all around the world after the 2008 financial crisis. In 2009 people were making only low cost houses. Which is the right thing to do.

 

 

The good guys, people who are making affordable houses.

  1. Ansar management company AMC

Jawad aslam is the founder of AMC. Amc builds low cost housing in Pakistan.  They make their developments around congested areas. Amc is making houses in Lahore.Their goal is to sell the last 25% of remaining property at premium to stay profitable.

  1. PHA foundation is also providing low cost housing since 1999.
  2. Ashiana housing scheme.

Ashiana housing is the project of government of Punjab. A good initiative towards providing low cost living. They claim that this is the largest affordable housing scheme in Pakistan to date. It mainly consists of flats. One and two bedroom flats. Allotment is based on the basis of a draw.

Terms and conditions of Ashiana housing scheme.

The applicant must have CNIC of Punjab.

Applicant’s total family monthly income must be lower than 50000 rupees per month.

The applicant must have no other plot.

The applicant’s age must not be over 55 years.

The prices starts at 12 lac rupees with 8000 rupees monthly installment plan.

 

  1. Gold tree private limited.
  2. Saiban an ngo in Karachi is planning low cost housing by the name of Khuda ki Basti. Its an installment based project. Khuda ki basti is in the region of Hyderabad.
  3. Eden housing is providing low cost well maintained well managed housing.

 

Quetta

Kirani, Darakhshan, Sraghuragai housing schemes, Labour department low cost housing. Low cost houses for Qda employees. Low cost housing Sirki road. Shalkot housing scheme and Zarghoon housing scheme was an attempt to provide low cost housing to the people of Quetta. Most of these housing schemes are still under developed.

 

 

Low cost housing around the world

Hong kong has a population issue which means not enough space to house all the people. Micro flats tackle Hong Kong’s high housing prices.  Square meter of living space in Hong Kong can cost up to 25000 dollars. So a new trend has emerged which is micro flats. You can find flats as small as 20 square meters in Hong Kong. The average size of the micro flats is about 15 meters which is the size to park two vehicles. So this was one way to own a home for young people in Hong Kong.

UK has some good infrastructure in place to maintain the number of affordable properties. Every housing project must ensure in advance they will also built 25% extra accommodation which must be affordable. Rental properties are also built by organizations which gains funds through philanthropic works. Council houses is also a form of low cost homes in UK which has good governing structure.

China provides free land to its private sector builders to build cheap housing. These houses are priced below market rate.

 

What needs to be done? The possible solution.

Proper town planning.

The government must come forward and announce low cost housing schemes.

Foreign investors must be given permission.

The government must create such environment where the builders is motivated to invest in low cost housing,

Cheap loans should be easily accessible. Make it easy for the banks to deal in property loans. Allowing micro finance such as SME bank to release small loans.

Tax relaxation for low cost housing societies.

Land should not be for speculation it must be for living.

Bring reforms in HBFC.  (House building finance commission)

Make consortiums

Make government private sector partnerships

Housing sukuk

Computerize all property records to make it easier for the banks to understand it for the loan process.

The “kachi abadis” which are becoming more and more crowded are mostly close to the luxury and expensive neighbor hoods. The best thing is to buy those areas as a whole and convert it into properly planned housing schemes. After developing the area plots can be given to the original owners and the rest of the land can be sold for profit by government.  That’s what DHA does in some areas. The best example is the Miami south beach in America. When developer Isaac Kramer first went in there parts of that area was a slum. Now it is one of the best location to live.

 

 

How to stop property prices from increasing

So how do we make the land affordable? How do we stop the prices from going higher and higher? The easy answer is tax. Tax the hell out of property. Put more and more taxes on the property that it become a burden for the rich investors who has hundreds of plots and houses. Tax the property and give subsidy on more basic things like food, flour, sugar and oil. Countries around the world has proper tax system for real estate which stabilizes the market in a good way. Singapore’s property tax model can be a better alternative.

We are so thankful to government for increasing taxes on property. it really stabilized the market. It stopped the prices from going higher. This was the only option the government had in 2016. Because the country was on the brink of financial crisis. In 2014 I predicted that the government will come up with some kind of solution to keep the investors out of property business. Otherwise everyone will invest their money in property and other businesses will collapse.  My predictions were true as we saw in 2016. It’s like when a machine is running too fast and there is a chance it will blow up and you turn it off for a while to cool it down. That’s what they did in 2016.

In Pakistan there are people who has thousands of acres of land which is never used. They don’t cultivate it. they don’t develop it. They don’t do anything with it. Why don’t they don’t do anything with it? is because they don’t need to. It’s been in there family for years. So where ever there will be uncultivated land there will be unemployment. The government must come up with a proper plan for this uncultivated and undeveloped land.

With proper planning housing can become affordable.

 

 

 

Click here to read our article about empty properties 

 

New rent houses

This page contains information about rental properties.

Click here to see list of properties for rent

1
House available for rent at Jinnah town Quetta.
It has
12 bedrooms with dressing cabinet and attach bathrooms
2 halls at each floor
Parking space with a lawn
Double story

Close to developed locations
It is located a short distance from Samungli road area.
Size 600 square yards
Rent 200000/ rupees monthly
Call for more details of the property.

2
Beautiful house available for rent at Samungli road ahead kidney center hospital Quetta.

It has
8 bedrooms with attach bathrooms.
2 halls at each floor
Kitchen
1 store
Parking space
Double story
Water and all other facilities are available.
It is located a short distance from Samungli road area.

Rent monthly, 45000

3
Ground portion available for rent.

It has
5 bedrooms with attach bathrooms
2 cars parking space with lawn
Kitchen

Close to developed locations. Located in shahbaz town Quetta
It is located a short distance from Samungli road area.
400 square yards.
Monthly rent 50000 rupees negotiable.

4
Two houses available for rent.

It has
5 bedrooms with dressing cabinet and attach bathrooms
2 halls at each floor
Kitchen
Parking space
Double story
It is located a short distance from Samungli road area. near Surpul samungli road Quetta.

1500 feet
Rent 32000 to 40000 rupees depending on the size of the house.

5
House for rent at shahbaz town.
5 bedrooms with dressing cabinet and attach bathrooms
2 halls at each floor
Kitchen
Parking space
Double story

200 square yards.
Monthly rent 60000 rupees.

It is located at main road with exposure to traffic. It is suitable for office.

6
Pair houses available for rent.
Each house has
8 bedrooms with attach bathrooms
3 halls at each floor
3 kitchens 1 at each floor
1 car parking space
3 floors
It is located a short distance from Samungli road near kidney center hospital.

Size 1500 feet each house.
Monthly rent 40000 rupees.

Call for more information of the house for rent and other houses.

7
Large house for rent.

This bungalow has
8 bedrooms with dressing cabinet and attach bathrooms
3 halls at each floor
Kitchen
Parking space
3 floors
It is located a short distance from city school near samungli road Quetta.

Monthly rent 60000 rupess.

Call for more information.


 

Commercial rentals- how to rent your house to a large business.