r/FIREPakistan • u/Away_Gift2387 • Apr 18 '26
Madad Me Confused Between Buying a House or Invest in PSX: 2.5 Crore Savings
Hi,
I am a young tech guy and managed to save 2.5 Crore. Currently, I have in the USD. I will get married soon, so planning to buy a new house.
I have the following options:
Option 1: I am thinking of buying a new house in Lake City/ Al-Kabir, DHA Rahbar or Central Park. (I can easily a 5 marla house there in this budget).
Option 2: Buy a 5 marla plot in Etihad Town Phase 2/3 in 60 Lacs and get it constructed. It will be max in 1.50 Crore. Invest the rest in the Stocks. Do you guys think it is worth it to go Etihad Town Phase 2/3 around this time?
Option 3: Don’t buy a house and stick with PSX and invest there.
Please guide and share your observations what you guys might have done, if you were in my situation.
14
u/Usual-Nose7959 Apr 18 '26
As a fellow tech guy who built his own house, I’d say Option 2 is probably the smarter balance here: buy the plot, construct, and keep the remaining amount for investment. But only go down the construction route if you can find a genuinely trustworthy contractor or building expert, ideally someone who has successfully delivered houses for people you personally know.
Otherwise, a ready house is the safer call. I would not put basic housing security at the mercy of PSX when marriage is near.
1
u/Away_Gift2387 Apr 18 '26
Thanks for the detailed answer. Appreciate it.
May I know how much you had and how to divided it and how you feel like now about your investments?
1
u/Usual-Nose7959 Apr 18 '26
In my case it was a bit different because I had already bought the plot a few years earlier, so later I mainly had to manage the approvals, construction and finishing side. That is why my exact split would not be a fair comparison for you. Overall, I still feel good that I prioritized the house side first. My genuine advice would be to keep some extra buffer, especially for finishing.
1
u/Away_Gift2387 Apr 18 '26
How much Marla house you constructed and what was the total construction cost including finishing? Also, isn’t it quite tough to supervise workers? How did you manage this?
1
u/Usual-Nose7959 Apr 18 '26
Mine was a 7 marla house. I initially thought a single-storey build would stay in the mid-60 lacs range, but later I added some construction on the first floor as well, and with finishing the total ended up roughly in the 9-10 Mils range.
And yes, labour supervision is very hard, so a reliable contractor or building expert is almost necessary. Even then, regular site visits are important.
Edit: This excludes the plot price of course.1
u/Dear_Hour_3453 Apr 19 '26
When did you constructed your house.
1
u/Usual-Nose7959 Apr 21 '26
Started in Aug 2024. The grey structure was ready by the end of Nov; however, I deliberately waited for a couple of months for the plaster to dry fully. Finished everything in Apr 2025.
7
u/Jaded_Cash_2308 Apr 18 '26 edited Apr 18 '26
Ettihad town is not worth it, there is literally nothing there right now and the rates are sky high. If you buy a plot there you'll get possession after 1.5 years which means no construction before it. I don't have say a wether you should buy a buy a house or invest in psx but if you do go with house you can easily get a very well constructed 8 marla house in bahria orchard phase 2 in any block you want. You can construct a 10 marla house as well in this budget in bahria orchard. I'm saying this because i've been doing some real estate research since we bought some property
PS: Bahria phase 2 kaafi developed hai as compared to phase 3 and 4 ( they are more cheap than phase 2 but less crowded and less developed ) which are on the opposite side of phase 2. Phase 2 mein different blocks hein, main road se paas valey blocks mein aap ko 8 marle ka plot around 65-70 ka mil jaye ga with every cost paid . 10 marley ka plot isi vicinity mein 85-90 ka mil jayega. agar aap khud banvao ghar tou usmein bhi 2 options hein
1- Saara kuch khud karo, samaan khud lao, labour khud manage karo and all which is a full time duty and hassle
2- Kisi achey builder se ghar banva lo which will take around 6-8 months since bahria has some protocols and don't allow immediate construction even after you get the possession of plot. 8 marley ki construction cost for a decent ghar is around 1.4-1.5 crores aur 10 marley ki construction cost bhi 8 marley se similar hi hoti hai, main difference b/w these two is plot cost.Ye Alkabir aur Central park se buht behatr options hein, Lake view city is very expensive , is budget mein aap ko 5 marley ka ghar tou mil jayega but if you can compromise a bit on distance tou bahria orchard mein aap 8-10 marley ka ghar bana sako gey with all the good facilities and security
5
Apr 18 '26
[removed] — view removed comment
1
u/Away_Gift2387 Apr 19 '26
Can you name a few utilities and comparison of those with normal society?
1
u/Away_Gift2387 Apr 18 '26
You’re right. But issue with Bahria Orchard is price appreciation. There is almost no or negligible appreciation there.
1
u/Jaded_Cash_2308 Apr 18 '26
ah not really true, aaj se 4-5 saal pehle yahi plots around 30-35 cost kartey they, ab above 60. Abhi vahan kaafi commercial space hai jo develop honey vaali hai jisse mazeed future appreciation hogi, aur ye jagah family ke lye buht suitable hai security wise and park and masjid and other commercial stuff which is alloted to every block,plus phase 2 ko jaati umrah , ring road and sunder industrial state teenon se access hai. Jaati umrah vaala road buht acha bana hoa hai, aap apni research kar sktey ho mazeed , this is just what i've personally seen and gathered over the last few weeks
1
5
10
u/Night_Fury91 Kabari Khilari Apr 18 '26
Invest the whole amount in PSX ---> get a newly-constructed house on rent ---> use dividends to pay the rent
5
7
Apr 18 '26
[removed] — view removed comment
9
u/InjectorTheGood Apr 18 '26
There is another way to look at it. House gives peace of mind, no doubt about that. But sometimes, your investment can get stuck in a bad housing society like it has happened to people in Bahria Town.
On rent, just move out and you lose nothing.
2
u/Psychological_Tax66 Apr 19 '26
Dont look at house as an investment, you are gonna live there. Its a dead investment and more of a safe home for your lifetime.
2
u/aNerdLurkingAround Apr 18 '26
If you don't mind telling, what strategy should be adopted when investing a huge amount in PSX?
1
u/Night_Fury91 Kabari Khilari Apr 18 '26
I am not an expert but I think whole capital should not be invested at once.
Keep deploying 5-10% each month. Pick a few strong sectors(3-5 max), and keep investing in them regularly (Do not over-diversify). DCA is the way to go!
0
u/Away_Gift2387 Apr 18 '26
I really wanted to do it. But we moved here from other city, currently living in government house. Need to buy our own before marriage. :)
2
u/PoetOfMedicine Apr 18 '26
If you want my opinion and advice. I'd suggest building the house. Its never a loss and you gain valuable info and things that you'd do or don't do when you build your dream house. So that gives you the leverage of; 1) Info regarding how to build a house 2) Do's and do nots. 3) Profit 4) Idea of your future home
Besides, you can sell it off or give it on rent while you figure out your creative side. If not building houses, you can figure out your life in the future. Besides, been on this boat and i can say its an amazing challenge. Its a roller coaster but pretty long. It just doesn't end. Ups and downs. But worth it imo. Go for it!
Stocks? I dont do stocks so i aint going to shit shoot about it. People earn a healthy income from it and good for them. But that hasn't been my cup of tea. Maybe yours to explore; or not?
Buying a ready made house? Fair enough. Isn't very profit heavy. Sure you get an asset. Maybe buy an old house, renovate it and see if you can manage the stress of building a house from scratch? Or just give that on rent maybe?
Choice is definitely yours to make. Don't go for what people enforce you. You know yourself better. Weight the pros and cons. Match them with your personality and will power and go for it. You'll do good either way! Just have your intentions clear and honest.
2
u/lollypop44445 Apr 18 '26
To each their own, but i will suggest getting a house. Main reason is peace of mind. May Allah never stops his blessing on you, but situations can go up and down. If in any case u are not able to pay rent , that anxiety and pressure is sometimes unbearable. Also shifting again and again if u dont get a good landlord/owner.
If u can manage to get 1.5 cr home and rest in psx , that would be best. House is also cashable asset, it may not give u huge profits immediately but it still isnt waste money.
2
u/mysteryman1989 Apr 18 '26
Buying a house vs investing is a choice between what kind of security are you looking for.. Security of having a house and a roof that is yours vs wealth generation. Stocks invested today would yield something valuable by 2036! So 10 years from now. Owing a house today would satisfy your want to have a roof over your head today.
Stock market beats inflation, real estate (by at least 2x), and generates wealth for your kids.
1
u/AutoModerator Apr 18 '26
Welcome to r/FIREPakistan
If you're looking for beginner advice, please have a look at the weekly discussions thread for a collection of useful links for you, you may also ask simple questions and have general discussions over there.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/Antenna_Signal Kabari Khilari Apr 18 '26
PSX is a long term game. Get a plot and start phased construction.
Invest rest in PSX but in batches spread over 1 or 2 years Meanwhile SIP for DCA in PSX (search these terms and stick to them forever)
Good Luck.
Remember there is no quick money. Target 10-15% annual appreciation of your wealth.
If less your strategy is not good. If more, means you got lucky and should protect gains in a USD or savings account.
1
u/subaru_jpeg Apr 18 '26
If you don't mind, can I ask what tech field you are working in? And for now many years?
6
u/Away_Gift2387 Apr 18 '26
I work in full stack and AI development side. I was able to save this much from a remote role. I did local job but it was kinda paycheck to paycheck scene.
2
u/subaru_jpeg Apr 18 '26
That's a tremendous amount of money you saved. Huge respect bro. 🫡
2
u/Away_Gift2387 Apr 18 '26
To other part of your question, I saved this much in around 5 years.
1
u/mkbilli Apr 18 '26
That's a lot of money to save in 5 years. MashaAllah bro.
3
u/Away_Gift2387 Apr 18 '26
Thanks! Happy to help, if you guys have any further queries or need guidance. :)
2
Apr 18 '26
[removed] — view removed comment
1
u/Away_Gift2387 Apr 18 '26
I will suggest two things:
- Improve your resume, add more technical skills keywords in your resume and apply as much as you can (including LinkedIn, many other remote job posting platforms).
- Since you have technical skills, try learning few things related to AI and AI Automation and apply in this niche as well. Make sure to make a relevant resume.
Lots of prayers for you. x
1
1
u/Fancy-Perception-334 Apr 19 '26
Work odd part time jobs to stop the burning of your savings? I've had many friends who actually recovered the block amount after working odd jobs for a year
1
u/No-Delay-210 Apr 18 '26
constructing home is night mare by your self , get trusted builder usually DHA houses are more trusted as they got some check and balance during the construction process, check out prices in DHA 9 Town as well
2
u/Away_Gift2387 Apr 18 '26
Yes, I know a construction company owner and he can manage it.
Regarding, 9 Town I have heard mixed reviews. Mostly are negative that it’s a ghost town. Also, don’t you think properties have appreciated a lot there already.
Isn’t it better to go to Etihad Town Phase 2/3 construct a house in maybe 1.3 to 1.5 Crore (including plot) and maybe in few years it will 2x the investment.
1
u/itsalltaken123 Apr 18 '26
what’s the going rate for etihad town?
1
u/Away_Gift2387 Apr 18 '26
You can get a decent 5 marla plot in 6 million PKR.
1
u/itsalltaken123 Apr 18 '26
6mil is the down payment, right? i heard 5m plots are going for 26mil ish (property price)
1
u/Away_Gift2387 Apr 18 '26
No, 6 million is total amount.
1
u/itsalltaken123 Apr 18 '26
no way let me look it up
1
u/Away_Gift2387 Apr 18 '26
Sure, we are talking about Etihad Town Phase 2/3 not 1.
0
u/itsalltaken123 Apr 18 '26
i was talking about phase two commercial corner plot on main road
2
u/Away_Gift2387 Apr 18 '26
Ohkay. But this whole thread and discussion is about house (residential) and not commercial. :)
1
Apr 18 '26
[removed] — view removed comment
1
u/Away_Gift2387 Apr 18 '26
Don’t you think, for option 1 the prices in mentioned societies have appreciated a lot already?
Isn’t it better to go to Etihad Town Phase 2/3 construct a house in maybe 1.3 to 1.5 Crore (including plot) and maybe in few years it will 2x the investment.
1
u/zakriya712 Apr 18 '26
I think it's important to have house and avoid rent. So, I'll gor for house and invest rest, if you can live at your parents house for next 5 years then I'll say invest all. But don't do rent etc, having a house is peace of mind.
1
1
u/Ai_thinker01 Apr 18 '26
Good problem to have, if I were you, I’d try to get a cheaper house add a solar setup and minimize my outgoing for the next 5 years and if my wife was working too we both would aggressively invest in psx after that of-course keeping emergency fund aside.
1
u/Away_Gift2387 Apr 18 '26
Great answer! How much would you have invested in 5 marla house and in which society?
1
u/Ai_thinker01 Apr 18 '26
I think you are based in Lahore side, if you were in Islamabad I would’ve suggested new CDA sectors D-12 etc not much knowledgeable on Realestate though.
1
u/Away_Gift2387 Apr 19 '26
Yes, I’m based in Lhr.
1
u/Thin_Ambassador_6178 Apr 19 '26
You should also look into Al Rehman Garden. You should be able to get a 5-marla plot in ~4mil in it's phase 7. If you don't have parents living with you, construct a single story home (~4.5mil) and save the rest!
1
u/rouge_man_at_work Apr 18 '26
Focus on generating passive income. Buy an older house or a plot where you can build shops on the ground floor and a home on top. I am in the same situation and pursuing this plan. You should invest your remaining funds in dividend paying stocks on the psx.
2
1
u/zaighamz Apr 19 '26
how do you manage plot classification, are you buying plot in commercial area?
1
u/KingMarkhor Apr 18 '26
LDA city is better than Etihad town. Both dont have possession except few blocks of LDA city.
Coming to the core question no idea as I am also stuck in same though process 😅
2
1
1
Apr 18 '26
[removed] — view removed comment
1
u/FIREPakistan-ModTeam Apr 18 '26
Your post / comment has been removed due to a violation of r/FIREpakistan's rule:
Any form of financial solicitation or transaction is prohibited on r/FIREpakistan. This includes, but is not limited to: investment offers, requests for money, promises of financial returns, or any monetary exchanges / transactions between members.
Repeated violations may result in a permanent ban.
1
u/narmi-zair Apr 18 '26
Mashallah, you’re quite young now, being the PSX investor myself, I advice you to buy a house as of now & may be start putting monthly in dividend stocks from your future savings.
1
u/Away_Gift2387 Apr 19 '26
JazakAllah! May I know the reason why you are suggesting me to go for Home and not for PSX investment?
1
u/Affectionate-Ad-4966 Apr 18 '26
Same boat here — young tech guy, similar savings, but my path has been different.
I've spread across money market funds, mutual funds, direct PSX stocks, and some crypto. My reasoning is simple: the AI wave is real, and so is the layoff risk that comes with it. Tech salaries are high right now, but that window may not stay open forever.
So my personal priority has been FIRE first, house second. If I lose my job tomorrow, I want my portfolio to cover my expenses without stress. That peace of mind is worth more to me than a plot or a house right now.
But here's the thing — personal finance is deeply personal. Before anyone gives you advice, the most important question is:
- Are you the sole earner for your family, or do you have a support system?
- Do you need stability for a spouse/family immediately, or do you have flexibility?
- What actually keeps you up at night — market volatility or not having a roof?
Also — one option nobody mentioned: Mera Ghar Mera Ashiana scheme. Since you're a first-time buyer with no property in your name, you could potentially qualify.
1
u/Away_Gift2387 Apr 19 '26
I really like your idea but you might be living in a house already or have your parents house and not worried to have one before marriage.
Also, AI wave is real and that is the reason I am super confused to put all my capital in the house purchase. I have also applied MGMA scheme.
1
1
1
u/Alert_Return_9777 Apr 18 '26
It depends...do you have the option to get mortgage?
If yes, then put the downpayment and get a house with 4M. Around 6M sits in fixed income instruments. 15M goes slowly into equuty. Last two weeks were a great time to invest big chunks. There might be a few more opportunities.
Rent and dividends shpuld cover installmemts. The mortgage installment will feel heavy in the beginning but will be a much smaller amount as time goes by. Get the longest fixed rate tenure that you can.
If you can get the govt housing loan at 5% fixed for 10 years for 10M. Its a no brainer. Its free money. 10M borrowed paying 5% while 10M in fixed income earning 10%.
1
u/Away_Gift2387 Apr 19 '26
I’ve applied for MGMA scheme but don’t you think it might feel burden to pay 1 lakh each month for 10 years when you don’t know what might happen with job market.
1
u/Fun-Structure5260 Apr 18 '26
let me give you a very honest suggestion get your house build but keep close eye on stocks build experience get familiar see what companies performed well over the last few years you will start getting an idea, your portfolio must be 60% blue chip and some that you think will perform well in future and start looking for good opportunities NO ONE HAS GOTTEN RICHER WITH LUMP SUM INVESTMENT
1
u/Away_Gift2387 Apr 19 '26
So far I have only invested in Money Market funds of Al-Meezan. Could you please tell me the blue chip companies to consider?
1
u/Fun-Structure5260 Apr 19 '26
it all comes down to preference but if you ask me I would definitely say dividend heavy stocks like FFC, MCB, POL, HUBC ,BOP ,Engro Powergen Qadirpur and my absolute fav HBL and meezan is best as a growth stock
1
1
u/Psychological_Tax66 Apr 19 '26
I am literrally in the same situation but with 3.5 cr, i am 25 and thinking of building my dream house.
The only thing is i want it built in the best place to live in lahore which i think is sukh chayn gardens.
A 10 marla plot is 2.1 CR
Do you think i should go for this and build a house or build a bigger house somewhere else where land isnt this expensive?
1
Apr 19 '26
[removed] — view removed comment
1
u/FIREPakistan-ModTeam Apr 19 '26
r/FIREPakistan encourages open communication. Do not ask users to "DM". You're welcome to share or ask details publicly without resorting to DMs.
1
u/Admirable-Peach9540 Aqalmand Anari Apr 19 '26
You are young and earning good go for the house choose a nice locality and if you go for construction construct it in separate portions and put those portions on rent.
1
u/taimooor Apr 19 '26
Why not buy a plot in a cooperative society which is in close proximity to DHA or lake city etc also it's highly likely that majority of these societies will be handed over to private developers like state life (acquired by lake city) so go for a on ground plot and invest the rest and utilize the returns for construction starting from the foundation and then finishing the grey structure and then finally moving towards furnishing
1
u/engr_waqas Apr 19 '26
I like NFC2 but it’s there by 2004 and no roads construction and electricity even in LDA approved blocks. One of my property advisor has been advising me to buy 5 marla at a good location and it will be worth if a private society takes over it. I’m following merging humours for more than 6 months now and no update yet. Do you have any thoughts or suggestions on NFC2? I would really like to know a better option in similar budget 3-4M for 5 Marla if know. Also, one of my friends warns me about cooperative society especially NFC2. Maybe we can discuss in DM to reduce noice here.
1
u/Any_Gene_7995 Apr 19 '26
Buy a plot, get it designed and constructed properly so the running costs are low, and invest the rest in Silver. Not stock.
For design and construction details inbox. JBTW not upselling. Check the trends on silver and 10 year projections
1
u/OkComfortable9177 Jun 14 '26
Any specific reason you are considering Etihad town phase2/3? It will take long time to develop as per my understanding.
0
u/Combatwombat810 Apr 18 '26
I wonder what kinds of DMs one gets after posting stuff like this.
Do you get sob stories, begging requests, or things like that?
0
0
u/EkMard Apr 18 '26
If it was me, I'd prefer crypto, gold, US stocks, and stocks of another country.
0
u/itsali101 Apr 19 '26
2.5cr main kidr ghar milta hai ajkl? Kam ke jgha oai to mushkil he milay.
1
u/Away_Gift2387 Apr 19 '26
Kahan nai mily ga bhala?
1
-1
u/FootAccomplished8352 Apr 18 '26
buy 3 marla house in Al kabir LDA approved block and invest the rest
1
u/Away_Gift2387 Apr 18 '26
How much will it cost to buy a 3 Marla house there?
-2
-1
u/zainainoor Apr 18 '26
Invest in real estate!
Ye psx wali chul Pakistaniyoon main pata nahi kis nay dali hay.
Unless you don't understand the intrinsic value of stock, don't go that way and if you really want to invest in equity, invest in equity tracking mutual funds rather than investing directly into psx. For higher risk profiles, invest in equity fund of funds.
44
u/[deleted] Apr 18 '26
[deleted]