It is really difficult to buy a property especially when you have never made an investment in the real estate of Pakistan. When you have money in your pocket and enters the real estate market, everything seems good and appealing. Numbers of property dealers will make you believe that you can easily earn millions by investing in their recommended property. This may be true in some cases but there are always more chances that you will get your investment stuck in a shady or dead project.
Property Market in Pakistan is one of the best options to park your money and to earn handsome profit with secure and profitable investment but a problem is that Real estate has never been regulated by the government. Unavailability of right information of some projects and weaknesses of the regulatory system is the reason for malpractices in Pakistan real estate market.
Most of these frauds include selling of duplicate files, selling illegal project or society or fake registration forms. It has been also noticed the sale of plot files without actual land etc.
It is true that making real estate investment in Pakistan is profitable but it can be a good many times but sometimes bad as well.The success of your deals and investment depends on your homework and proper research before making finalizing any deal.
If a person of your family or your close friend is involved in the property business, you can seek advice from them, if not; you have to learn on your own.
In this latest blog, we are going to share some important tips and key points that a buyer needs to consider before investing in any property. So let’s start discussing these tips and information together.
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Know the Sponsor of The Project
The basic and very important thing is to know the sponsor of the project. Many private projects and societies are owned by individuals. Housing societies that are owned by Government or the armed forces like DHA is safe for investment whereas the projects that are owned by cooperative societies or private individuals can be good as MPCHS and Bahria Town, but can also be bad like Jeddah Town and Muhafiz Garden Cooperative Society.
Do research on the sponsor of the society. If the sponsor is already maintaining a good reputation in the real estate market, then invest in his project, if not, just add him in your blacklist and search for another option.
Collect Information About The Project
After acquiring knowledge about the sponsor of the project, now move to check some other important points like:
- The total land area of society
- NOC from the relevant development authority
- LOP from the relevant development authority
Whatever information you have collected, make sure to cross-check it from the relevant development authority like RDA, CDA, KDA, LDA, etc. If the project is approved and has NOC then consider making an investment in it. If approval is under process, then wait for its approval and if it is illegal just forget to make the investment in such a blacklisted project.
Check The Location By Visiting On Your Own
The location of any project plays an important role in its success and failure. Same like that, your investment will be profitable when you will check the location of the society on your own. Plan a visit to the project and check the access of road to that society. Check the exact location of the society and the other features and attractions located in the surrounding of it. Do check that which are the upcoming mega projects or any major developments near the project. If the location and the surrounding attractions are good, do consider it to make the investment but after checking further details as well.
Check The Master plan
After visiting the location of society, now check the master plan of the project as well. Check the town planning and the features and facilities of the project. If the town planning and design are made as per modern principles, add the society in your white list otherwise consider another option.
Know About the Developers
If the sponsors of the society are reputable and have a good history of successful projects, then there are high chances that the developers will also be good for the project. Get information about the developers and if the developers are already maintaining a good reputation, consider the society otherwise add it in your blacklist.
If all the discussed points are clear and you are satisfied, then this is the best opportunity for investment. If you are satisfied with the first three points but have some issues on approval, then you can also check the application documents from the developer and can also go to check these from development authorities.
If you are not able to visit the location personally as you are out of the city or living abroad, you can also get the information from the official websites of the relevant development authorities. Do check the location on Google maps; check the pictures that are available to get the best idea of development and town planning.
After getting all the necessary information about the project, now it is time to make a deal. It is always recommended to make property deal on your own. If you are not available you can authorize your close relative. Here we are going to share the details and information that you need to consider before making any property deal.
Find an Experienced Dealer
Finding the right property dealer in real estate market of Pakistan is one of the most important steps before entering into any property buying transaction. It is not easy to trust everybody as there are hundreds of property dealers are available in the market. Make research to find out the known and the authorized dealers that are working in the property market from the last many years.
Once you start finding a property agent, you will find many but don’t get impressed by big offices or with the sweet words of the dealers. Look for the professional dealers especially who will sound you honest and reasonable. Once you have found your professional and reasonable dealer, now proceed with your property requirements.
Check the Plot/House Location
Do not rely on the society map and go to check the location of the plot on your own. If the plot is not developed yet, use Google map to get the precise idea for the plot location. Try to consider the plots that are leveled. If you are going to buy property on the hills area, choose the plots at the top location for aesthetic view.
Check Prices Of Plot In Market
If you have found your desirable plot, then try to check the prices of that plot in the market. No doubt, your dealer will give you some price demand but contact two to three more dealers to know the exact price of the plot.
Check The Plots Documents
Now if you have selected your plot and also agreed on a price, first do check the copy of plots documents. Before paying any Bayana/Token Money, make sure to check and verify these documents. You can go and visit the society office for confirmation.
Meet the Owner Of The Property
Before finalizing any property deal, ask your real estate agent to arrange your meeting with the seller. If you find that the dealer is trying to avoid the meeting, just stay away from that deal.
Book Property With Byana Not Full Payment
It is very important to finalize the deal with 5% to 10% byana/token money. Do not pay the full amount of the plot at the time of byana. It is recommended to pay that bayana in the form of pay order or check.
Read & Sign an Agreement
It is better to read and sign an agreement at the time of Bayana. Make the agreement with all the terms and conditions mentioned in it. And also discuss the important points with your agent, like his commission, transfer fees of the plot and also the tax expenses.
Pay Through Banking Channels
Whenever finalizing a property deal, it is important to make a transaction in the form of crossed checks and pay orders. Actually, cash payments have no official records so paying through banking channels is considered the safe and good option for both buyers and also for the seller. Before paying and hand over the pay order, make sure that all the transfer process is completed. Make a photocopy of the payment order and ask the plot owner to sign it to confirm receipt.
Demand a Copy of Sale Agreement At The Time Of Transfer
It is also important to demand a copy of the sale agreement at the time of transfer. Maybe it is not useful for you, but it is always good to keep the record of every document. This copy of the sale agreement will show the details of the amount you have paid for buying the plot. Check the cash amount as well as the plot details mentioned on it. So here we have tried our best to cover all the important tips and details that you must check and follow before making any property transaction in Pakistan. If you will work and get proper information before investment, you will be able to save your hard-earned income from investing in fake or illegal real estate projects.