Are you planning to buy property in Pakistan?
But have no idea from where to start?
Don’t worry!!! We’re here to guide you on how to initiate real estate investment in Pakistan.
Property management and real estate construction is in the boom during the past few years. The reasons for the rapid progress of this market are population increase and government incentives at the same time. The rise in population has taken a toll on the land and housing investment.
Similarly, on the other hand, the high demand led to higher rates in the property and construction sector. However, the realty sector fascinates several investors due to the continuous spike in property value in Pakistan. The zero depreciation of the importance of realty appeals to many stakeholders to put their money in reality.
How To Buy Property In Pakistan?
The government is incredibly encouraging investment in the real estate business, significantly reducing the negative impact on the economy by providing substantial tax reliefs and lowering the interest rates on investment. So, this is the right time to buy property in Pakistan with the most favorable investment incentives.
However, with the increase in property value, fraudulent and failed projects are also part of this sector. Not every investment ensures 100% success. Some projects miss legal documents; others fail to deliver the promise of higher returns. But before you decide on which project you should invest in, you must follow the following steps to get the desired investment without bearing any loss in the process.
EVALUATE YOUR OPTIONS
Before you decide on your investment, explore the best options for real estate in Pakistan and property investment. The investment trends prevalent at the time of your research will help you find the most secure investment project that will benefit you in the long run.
Research the present market condition if it’s favorable to invest now, or you need to hold on if the market is lackluster and performing very slowly.
On the other hand, you must decide where you want to invest? For example, are you interested in buying property in Islamabad or property in Karachi? Naturally, you want the residential or commercial property to make the best decision.
To make an informed decision, the investors must evaluate each of the options. Ask yourselves four of the following questions to get a clear idea to draw a road map for your investments.
- Where do you want to invest? What will be the location?
- What is the purpose of your investment? For example, is it a residential or commercial investment? Moreover, are you interested in active or passive investment?
- What is your budget?
- What is a market trend in terms of prices? What is the market prediction about the real estate business?
Once you’ve gone through these questions and evaluated each of them clearly, you’ve made more than half of the effort. It will help you pick the right residential or commercial project. List down all of your findings and move towards the second step.
HIRE A CREDIBLE REALTOR
After going through proper research, you can find credible and reliable property agents in Pakistan. You can discuss your requirements and options with them, and they will help you find the most suitable property project tailored to your needs. Unfortunately, not all real estate agencies deliver what they promise. Ask your peers or search online for all credentials before hiring a property agent. To find the best property agent in Pakistan:
- Ask your friends, colleagues, and relatives.
- Examine the experience and customer service of any three realtors in the local market
- Check their track record.
- Interview the realtors and talk with some of their customers
However, investing to buy property is not as straightforward as it seems to be. Instead, it’s pretty artful, and you can fall for the wrong ventures and projects by conniving sponsors and fraudulent realtors.
It follows that a credible realty agent comes with many reasonable projects. So next, you can see several investment options on your table. But how you can single out the best one, we’ll explain to you in the next step.
CHECK ALL LEGAL DOCUMENTATIONS PROPERLY
Afterward, the trek towards making an informed investment has begun. It can bring you handsome returns, or it can bring you huge losses. It depends mainly on how much time and effort you have invested in evaluating the legal documentation of the selected projects. Don’t go for a single project at a time. Consider more than one investment option and assess each of them so that you can invest in the right project.
Check all the legal documentation as
- if the relevant development authorities have approved its Layout Plan (LOP)
- if the project covers all the legal requirements like the NOC of the project.
- Assess the land in Pakistan by visiting personally multiple times
- The credibility of the sponsors and developers like DHA, Bahria Town, and AAA Associates
- Arrange a meeting with the project owner at least three times to discuss the details
REACH A DEAL TO BUY PROPERTY IN PAKISTAN
Don’t settle on anything until you’re sure that a legal channel is being followed by proper paperwork. As you already have analyzed the prices in the market, you must reach a deal at the market prices. To get a fair price, negotiate with the seller based on market trends. Then, get to the token money with a mutual agreement, and it must not be more than 5% of the total price of the property. However, don’t make the mistake of paying all the payments in cash. Instead, pay all the dues by bank draft or bank pay order.
- Check the market price.
- Give token money to confirm your purchase
- Don’t pay without negotiating a final price
- Pay via bank pay order
RECEIVE ALLOTMENT AND TRANSFER LETTER
Lastly, ensure that you’ve paid the real estate agent their commission and received the transfer letter and plot allotment legally from the seller. Check the following legal documentation.
- No Demand Certificate (NDC) for transfer fee and other charges
- Obtain a Property Purchase Agreement
- Transfer Letter
So, this is the process you must go through to buy a property in Pakistan. If you’re planning to buy property in Faisalabad, in Lahore, or anywhere in Pakistan and some questions are worrying you; you can contact our team or leave a comment below.