If you are planning to buy a property or want to invest in the Real Estate Industry of Pakistan, you have come to right place.
Since 2010, the real estate sector of Pakistan has experienced a tremendous development and growth. The Federation of Pakistan Chambers of Commerce and Industry stated that real estate is contributing positively in overall growth of country’s economy.
Analysis of few years market trend reflects the price hike. Urban sprawl & state of the art projects are one of the main reason behind this escalation. Individuals including overseas and across the country are focusing to buy their own piece of land now. But the major problem is they don’t know where to start and what to consider.
Here, you will get basic guidelines that are worth remembering before jumping in to the bandwagon of real estate.
Do your own research work
It is one of the integral part when comes to any sort of investment. Digital advancement has revolutionized the real estate sector of Pakistan. You can find several online property portals. Gather your basic yet key piece of information from these portals. During your research, try to figure out:
- Type of property
Avail Property Consultation Services
No matter whether you are naive or a veteran, consultation firms are made for you. You should visit property consultation firms and have their expert opinions. They will definitely guide you about strengths and weaknesses of various projects and ventures. However, be wary some people might try to up sell you what they are offering so you need to do your homework and go to the right people to guide you.
Find Right Agent
Agent will guide you about the details, price, strength, weakness and other necessary information in buying a property. If you are overseas, then it will play an integral role. So it’s important to choose the right one.
Try to have face-to-face meeting with all of them. Choose the one who quotes the price nearest to your research. Understanding market trends, government policies & keeping track of how the economy is shifting will help you in making a more realistic & researched investment.
Don’t Fall Prey to Gimmicks
Do not go for lavish offices and flattering speech. They will try to attract and manipulate you especially if you are from abroad. You need to have your own calculations and observations. Never rely on their experiences alone & visit the site yourself, even if its someone you know for decades. Act naive but be well informed.
Ascertain Property Value
Finding the market value of your concerned property is a crucial part. For this purpose, try to communicate with as many agents & resources as possible. While interacting with agents, mention yourself as buyer and seller. Afterwards, do some quick Math calculation to get the average price of your property.
For Instance, if someone is quoting you a plot no 1 which is 5 Marla property for 30 lacks, try calling another agent and telling him that you are looking to sell plot no 2 which is 5 marla the offer he and the others give you, will help you create a median to make an informed investment decision.
Purpose of Your Investment
Keep in mind the purpose of your investment. You will have a wide set of priorities depending upon your investment intention. Always consider the availability of basic necessities (Electricity, Water supply, Sui gas, etc.), distance from commercial areas, Current development status, Return on Investment, etc. Also keep in mind that all legalities are met such as NOC (No Objection Certificates) which are easily accessible on the CDA, RDA website in detail.
Also Read : Complete Guide About Capital Gain
You need to verify the documents first hand. Following is the list of documents you must consider, before having any final words:
- Allotment letter/Title Deed: if you are buying from third party individual verify title deed firstly. It is a document that confirms individual’s right to sell property.
- Power of Attorney: if an individual is selling any property on other’s behalf, make sure to get copy of Authorized Power of Attorney.
- NOC: No Objection Certificates (NOC) issued from legal authorities and departments is integral according to Pakistan laws and regulations.
- Never go for Cash: It is usually advised to go for cheques, pay orders (Demand Draft) or online transfer. It will give you an opportunity to present tangible proofs, if any issues arise later.
Token Money & Token Receipt
After the settlements of financial matters. You have to give Token Money (BIANA) that will ensure the commitment to the deal. Do not forget to take the Token receipt from owner or the developer company. Other things to consider includes:
- Receipt of Token Money mentioning complete address, file number/plot number
- Copy of allotment letter
- No due payments or lawsuits against your property
- Read the terms and conditions of the agreement carefully, you might have to pay double or your Token will be forfeited if payment is delayed or not paid in provided time. Read thoroughly and if you are new get it checked from a lawyer you can never be too careful.
Keep in mind that Token money will be deducted from your actual property price.
Last but not the least go for well-known & well-reputed brands when investing in real estate sectors. May be they are a little expensive than others but are worth trusting. Moreover, try to invest in famous locations as it will not only secure your investment but also double your profits.