The land is one of the few assets whose price appreciates over time, hence land investing is always in demand. People often ask ‘Is is buying a land good investment?’
The answer depends on your personal preferences. However, you should know that land investment comes with many attractive features. Due to these attractive features, the land is one of the most sought after and desirable investment opportunities in Pakistan.
However, buying land can be tricky and time-consuming as well.
To get an asset, that too, without any hassle or fraud, you need to follow some measurements and steps.
In this blog, we will walk you through the process of real estate in Pakistan.
So, let’s start and explore the science of real estate.
Do a background study
Before buying any asset, whether it is a plot, or a house or an apartment– make sure you do your research. Keep your eyes and mind open while doing your background study. You must know the ins and outs of real estate. Sometimes it is better to invest in a plot and sometimes it is far favorable to invest in a commercial property. All these decisions are highly dependent on the economic conditions and your capital as well.
Read about real estate, follow the real estate news, and ask around for the latest trends and news related to real estate, only then you will be ready to make an informed decision about your investment. You can follow real estate youtube channels or real estate books to get knowledge abt it.
Find the real value of the land
Land as an investment is always fruitful. But, before making any sort of transaction, make sure you are aware of the real value of the land. It is very common in Pakistan where sellers quote higher prices and rip off the hard-earned money from the buyers.
To keep yourself away from real estate frauds, you must ask around for the prices of the land that you are about to purchase. Contact real estate experts, development authorities, and real estate agents to get the accurate price of the land.
Find the right agent
Finding the right real estate agent is a blessing. They will not only introduce potential properties but they will ensure that everything stays on track. In short, if you want everything to be smooth and transparent, invest in a good real estate agent for sure.
Graana.com is known for its experienced real estate gurus, transparent and secure processes, and convenient transactions. To avail of the services, visit Graana.com, fill in your details on the website, and let the experts do the job for you.
Assess the land
Make sure you visit the piece of land before making any kind of decision. It is important to view the land in real-time. Many people scam others by showing them pictures of some other land and selling them a different piece of land. Do not let this happen to you. Stay vigilant and make sure everything is legit.
Also, hire a land surveyor and ask him to run soil testing. Sometimes some pieces of land have water which may affect the foundation of the house as well. Therefore, hire a surveyor and let him examine the land for you. This small expense will save your future real estate investment and hard-earned cash.
Meet the seller of the land and discuss the things with him in detail. Ask him about the area of the land, the location, amenities present near the plot, any legal issues, etc. Make sure the seller is clean and transparent in his dealings. If he has sold properties other than this as well, make sure you meet those buyers to know more about the seller.
Then, most importantly, negotiate on the prices and try your best to bring down the prices. Usually, sellers quote higher prices which can be brought down quite easily.
Negotiation is a game of words. So make sure you ace at it and save your hard-earned money.
The token is a small amount of money that has to be paid by the buyer as an indication of serious intent to purchase a property. Token money is paid on mutual agreement between the buyer and seller about the selling price.
Set token money with a mutual consensus. Sellers usually charge 5%+ of the total amount from the buyer.
Also, before giving any money to the buyer, make sure you put everything on paper and everything goes through the legal channel.
Verify allotment and transfer letter
Verification of property is crucial. Until purchasing a property please ensure that your purchased plot is transferred to you and that it is registered on the paper with your name on the transfer list.
Sometimes people promise you a plot but in reality, they sell plot files to the people. Plot files can be extremely risky because there are high chances of getting scammed. Make sure to get proper measurements of the plot.
So, make sure you know the basic difference between plots and plot files.
Pay using bank pay order
The pay order is a financial instrument issued by the bank on behalf of a customer stating an order to pay a specified amount to a specified person within the same city. A bank pay order will ensure transparency of the transaction and your money will not be subjected to any kind of risk. There are many banks that provide home loans.
So, these are some of the steps you need to take into account when purchasing land in Pakistan. Invest in the land to secure your money. We hope these steps will not only help you out but will also bring in organization, and clarity to the whole process.
Do not forget the Copy of the Sale Agreement
A sales agreement is a legally binding contract that clarifies the terms of a transaction. A sales agreement is also known as a sales contract or an agreement to sell. It is a binding agreement that you should demand while making a purchase. When you are about to transfer the property under your name, make sure you ask for a copy of the sale agreement. You might think that it is not necessary for you to ask for a copy but, rest assured, you will need these documents in the future. Plus, it is always good to have a copy of everything with you.
A sales agreement copy comes with important information such as the amount you have paid for the property, check number, pay order number or cash amount. It also has the property details listed along with the details above.
Pay partial token money
Never pay a lump sum amount during the banana. To finalize the deal and secure the investment, try to pay 5% to 10% byana/token money. This will help you to safeguard your money and save you from property fraud and financial losses.
Also, to ensure transparency and safe money transactions, you should pay byana in the form of a check or deliver an order. Try to avoid hard cash because it is tough to keep track of money, and in future, you will not be able to claim anything in return.
Get to know the Master Plan
Investing in land is considered to be one of the most common ways of securing your money. Indeed, raw land investing is truly rewarding. But before that, make sure you know the master plan.
According to the world bank, a master plan is a dynamic long-term planning document that provides a conceptual layout to guide future growth and development. A master plan includes analysis, recommendations, and proposals for a site’s population, economy, housing, transportation, community facilities, and land use.
After visiting the location, it is crucial for you to understand the master plan of the site. Take your time and try to know as much as you can about the master plan. A good master plan is realistic and fruitful.
Know the Developer
Buying land for investment can be tricky. The formula is – if the sponsor is good, the developer will automatically be good. For example, Graana is a well-known developer in the country. But, to be on the safer side, make sure you know the developer. Please read about the developer, gather as much information as you can about them, and then decide about your investment. If the developer is reputable and has a track record of success, you should check the development standards.
Give this blog a read and let us know if you have any questions regarding the whole process.