As billions of rupees real estate industry is in shambles, small investors have desired from the government to introduce consumers oriented policies for their one-time bailout to save their hard earned money.
Thousands of small investors had invested in real estate with hopes to earn some profit for their families, but in spite of earning any profit now even their principle amount is in danger due to prolonged recession in the industry.
Already suffering from price hike and increasing cost of living, these investors are badly wedged in this downturn especially those who thought this small term investment, a panacea to their sufferings never knowing, these plots files could also haunt them.
Now they are in complete dejection seeing no immediate hopes of relief with housing societies’ owners pushing them for paying installments and other charges.
“Situation is too worrisome for us. We had purchased files to earn some profit but recession in industry has pushed us to wall,” said a small investor Rashid Mahmood, who had booked a flat in Bahria Town, Rawalpindi. “I was swayed by boom in real estate and thought I could add to my little saving by investing in real estate. But, soon I got truck up like thousands others, due to abrupt recession.”
He revealed that after paying down payment and couple of installments, he dried up of finances and fear cancellation of his booking. “This may result in loss of my hard earned money. I had never expected such a recession where there would be no way out to dispose of my property.” It is now almost two years or so that people are in serious trouble due to property prices going down by 50% to 70%. On the other hand the societies’ owners are pushing people for payments threatening them to cancel their files.
These poor investors are now between the devil and the deep sea with no immediate ray of hope with some compelled to sell their ornaments or other valuables to pay societies installments.
“I was not a billionaire. My aim was not to pile up wealth. I had just invested to earn some money for education and marriages of my children,” remarked Abdul Rauf, another small investor. “But situation has completely changed and a small desire for profit has turned into a big loss. Neither, I have more money to pay nor my property has proper market value to sell out.”
He appealed to the government to introduce one time bail out policy for poor and small investors as well as a long term strategy to save investors of this sector in future. “If these investors are not rescued, they will lose their money at the hands of property tycoons who have already piled up billions of rupees but still push investors to pay more if they want security of their already paid money.”
When contacted, an owner of a housing society said, what they were demanding from buyers was according to the terms and conditions signed by them at the time of purchasing plots. “We facilitate them through different incentives. We do not desire their money to go waste, but also cannot bear their losses. These are the market dynamics that have put the investors in jeopardy.”
It is general tendency that most of investors do not carefully read terms and conditions of agreement and are trapped due to industry’s glamour. Many among them had also not gauged their financial capacity prior to investment as they had short term investment in their minds. But, when they had to pay full installments, they fell in trouble.
Real estate agents are also in a fix due to prevailing situation as they had got invested billions of rupees of their clients with hopes of short term return and profit for them.
“We had never expected such a recession when we advised our clients to invest. At that time there was a boom. But, now they are trapped and we also do not find any way out for them,” said Aamir Chaudhry, a real estate agent. “Now, we have nothing to offer them instead of sheer hope of good days ahead.”
He said in such a situation, we can only desire from the government to introduce some policy, particularly for rescuing small investors. “Here the state needs to play a motherly role. Although, the state is not directly an author of this injury even then it should come forward to rescue these people.”
Aamir said the situation is more worrisome for those who had purchased files. “Those having solid property can hold it for some time. But, those invested in files are facing the dilemma of paying installments and other charges even when the value of property is continuously downing.”
Therefore, he said, if in this situation the small investors are left on mercy of big developers and property tycoons, it is feared that they will lose their money in terms of files cancellation due to non-payment of installments.
As the real estate industry is facing turmoil like many other sectors of economy, an overall strategy was direly needed to save our middle class and small investors whose lives are getting miserable with every passing day.