Buying a Plot

Buying a Plot: Things to consider before real estate investment

Investment in Real Estate is much lucrative if it is done wisely. Investment can either be Small Term, Mid Term & Long-term. This includes buying a plot, flat or any retails shop or building itself. There are several aspects that you must consider before investing. Usually investors fail to get the main point that it is not all about merely selling or buying a plot. Making the right move at the right time is also very important.

Investment in plots is often a substantially profitable opportunity. However, keep in mind that Capital Gain cannot be attained immediately. It can be made double or even triple if you take in to account following factors before buying a plot.

Legality

Considering the legality, specifically No Objection Certificate from the development authority also known as NOC, which is the most important aspect. Usually investors ignore the NOC & our later seen complaining about the scam & ultimately losing their hard-earned money. Thus, in order to avoid such frauds & scams, make sure to verify the NOC and other legal documentations of the society.

Capital Development Authority & Rawalpindi Development Authority are the key institutes that deals with NOC in Islamabad & Rawalpindi respectively. Meanwhile, societies like Capital Smart City, DHA, Bahria Town & similar other projects considered ideal in terms of legality and investment.

Be Aware of Zoning Restrictions

Certain areas have their own limitations regarding the purpose of plot. For instance, you can’t buy a ploy in residential area for commercial purpose in certain areas of Islamabad. Thus, zoning restriction is foremost important.

In addition, these restrictions also include to follow particular building design, floor area ration, and skyscrapers policy & many more.

Location

“Location, Location and Location”, it is the golden rule for investment in Real Estate industry. It is the location that makes your plot investment a heap of lucrative or a loss. Location of plot must be

  • Easily accessible by public transport
  • Near to commercial space
  • Connected to well-paved roads

The purpose of buying a plot is also a major factor. Like if you are buying a plot for commercial purpose, it should be present near the crowded place or on a main road. On the other hand, for residential purpose, it must be on rather isolated & a tranquil place.

Availability of Utilities

Make sure plot you are invested in facilitated with daily utilities. It must include the transmission of

  • Water
  • Sui gas
  • Electricity
  • Telephone
  • Cable TV
  • Internet

Availability of grid station in vicinity is also crucial. If the area is being developed, make sure to get information on estimated time frame of development till the entire availability of these utilities.

Availability of Facilities

Make sure certain facilities are easily accessible from your invested plot. It may includes

  • School, Colleges, Universities & Tuition Centers
  • Markets & Retail shops
  • Shopping complexes/ Shopping Malls
  • Hospitals & Clinics
  • Parks
  • Cinemas
  • Petrol Stations

It plays a very central role in defining the value of your home. However, as said earlier in location section, it also varies depending upon the purpose of property.

Furthermore, check with tax receipts & other insurance statements, if any. It is also recommended to discuss your desired piece of land with locals. As it will help you to get the insights about the conflicts or lawsuits. Yes, it will require a lot of time to do this sort of research. But this checklist ensures your investment is safe & your asset is secure.

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