7 Things To Keep In Mind While Buying Property In Pakistan

Pakistan is a developing country with all the enormous resources and ever-progressing talent. The country is expected to make it to top 20 countries with highest growth in economies in the 21st century. With growing potential, the country is luring international investors to invest money right now by un-tapping many segregated markets. Among the numerous investment opportunities, real estate and property are considered as one of the best and widely practiced investment options available in Pakistan considering the high and increasing returns on it. Although there was a drastic recession in the industry but since the last decades, the industry is back on the path or even better with high yields in terms of resale price or various property and real estate options developed or under development.  

Many real estate developers have also invested their efforts and money for lower or middle income level to make the industry lucrative for all and to fill in the housing gaps. As attractive as it sounds, it also one of the most difficult and critical decision to make considering the Pakistani market. While these developments have made the real estate sector more robust and attractive overall, they have also made it difficult for investors to make the decision of buying a property that can provide safe and comfortable lifestyle or investing in a property that can yield high return. Moreover, there are multiple factors that need to be kept under consideration and well evaluated before making an actual investment. Here are some pointers to focus on before buying a property or investing in real estate;

1. Location:

In Pakistan, the prices and returns on properties mainly depend upon the area and then the size. One should always research with primary and secondary sources and understand the analytics of the market; potential and status of the area in the community. Another important factor of the location is the neighborhood, it should provide you with the liberating sense of peace and security so you and your family can process their lives smoothly.

Lahore, Karachi and Islamabad are considered as the most profitable cities of Pakistan as majority of the people from different parts of the country settle there to enjoy standard living. Among these, Islamabad is most expensive in terms of property and real estate due to the pace, calmness and modern infrastructure within it. If you want to invest in the property make sure you invest on the basis of location; property which has maximum importance and the ability of increment in its current value.

2. Budget:

The decision of choosing the location or size of your property highly depends on the budget but one should be aware of the appropriate worth of the property of a particular area by doing some ground research to make a rational decision. One should analyze their needs before making a decision. For instance, if one has a good number of family members and require sufficient space in a limited budget, they need to shortlist their options based on price and look for property options on moderate areas.

3. Accessibility:

This factor is relatively important in case you are buying a home or investing in a plot. In either case, the place where you buy your home or plot should be accessible to basic facilities. You also need to consider the zone out areas before making an investment. For example, you cannot build a commercial building on a plot zoned for residential use and vice versa. Moreover, educational and health facility, day to day grocery markets and religious spots must be in close proximity for a plot to have appreciating value or for your own convenience.

However, if you are buying a commercial plot, it should be located in a crowded area that receives a lot of foot traffic. In a nutshell, the location should be closer to market or any commercial area not just for your own ease but anyone who visits your place in the future.

4. Utilities:

This is another important factor that should be considered before buying a plot or home in Pakistan. Especially in Karachi, the provision of gas, water and electricity is a major issue in majority of the areas. One should evaluate the decision based on the provision of these utilities or the alternatives used in case of hindrances. Moreover, the availability of fiber optic or seamless internet and cable connection is also a necessity and need of every residential area. Whether price, location or neighborhood, one should not compromise on either of these facilities as they only make things more difficult for the residents.

5. Facilities:

This is one factor which is ignored by many people before buying a house or a property. However, it has a huge and distinguished impact on the lives of the buyers. For instance, if you are buying a property for an investment then buying a home near shopping malls, markets, or any commercial spot because the value of plots and property near these places is always on the rise.

However, if you are buying a plot for your own residence then this factor would have a different impact. For instance, people normally avoid homes beside or opposite these places because the streets are always crowded and the traffic is always heavily running. Same goes for educational institutes, hospitals and dispensaries. Having said that, people except these places to be in near proximity for the easy commute to these places in case of emergency or need. While having a good hospital in the vicinity may increase the worth of your property, building a house on the same road as a health care center won’t leave any room for peace and privacy.

6. Security:

Home is the place where we get more comforts and security. So when one considers adding resources into the house, there may come various parameters as the top priority list and most vital part of is security.  However, searching for your dream home comes with various considerations. One of the most important consideration is security since you’ll likely be aiming to stay in the property with proper security features, which will keep you and your family happy for the long term.

Many of the housing projects, flats, apartments being built recently have safety measures adopted, where they mainly focus on safety as precedence. They offer CCTV surveillance to the entire premises of projects along with firm security guards. Feeling safe in your own home is essential to any resident, which is why you need to take the right steps to pick a safe apartment. As for investment, security still plays a pivotal role. Locations with shady or poor security tend to have low value or returns due to lower demands.

7. Authenticity:

Most of the time while investing in real estate we feel our hearts in our boots, but why? The basic reason for this fear can be found in the scams that shroud our society most of the time. Real estate is an industry that lacks transparency and authenticity. Investing money in real estate means to protect yourself from future financial fluctuations and upheavals. So it needs a deep thought and planning on the investor’s side. There are certain things that one can keep in mind before buying property in order to avoid any frauds, scams or litigations;

  • Find the market value of the plot to be aware of the price your realtor is negotiating with you and avoid being robbed by them.
  • Find the work background or know-how of the realtor in the market to verify his authenticity.
  • Check with the neighborhood about all the claims your realtor or owner has made to you.
  • Meet the owner face to face and make all negotiations and decide on the terms and conditions to avoid miscommunication later.
  • Do not pay the entire money at once, pay the token money first. In case everything goes fine, pay the down payment and make gradual payments.
  • Check for the verified documents and verify documents on your behalf as well.  Documents such as Power of attorney, allotment letters, sales deed and transfer letters need to be verified.
  • It is better to make the payments via bank orders to keep a track of the transactions on paper.
  • Look for tax statements as each society has different rules for Taxation. This is a huge subject that needs an article of its own to fully explain it.
  • As for what you need to pay your agent, his commission is 1% of a total price.

As discussed above, real estate is one of the most beneficial investment options in Pakistan but also one of the most critical decision. The accurate decision can lead to various benefits and similarly, one glitch can lead to financial, monetary and emotional trauma in the long run.
If you have any other pointers that should be considered, write us in comments and follow LandTrack for more extensive news and info.

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