An increasing number of people are booking apartments or houses in Pakistan. These properties are purchased before they are built and are established by independent developers and builders.
The responsibility of constructing the property within a specified period of time falls on the developer.
If you are thinking about booking a property, factor in the following:
The prices of properties are usually 20 to 30% lower than built-up property, and have a high return-on-investment which ranges between 30 and 40% per year.
In order to secure a property, you will have to make a down payment to the developer, which usually amounts to 20 to 30% of the projected value of property. The remaining amount is paid on a monthly basis, usually over a period of three to four years.
- If you are unable to pay the installments on time, the builder can exercise his right to confiscate the property.
- When the property is ready for possession, the resale value usually goes up by 20 to 25%.
- Property can only be sold or transferred in someone else’s name after it has been built.
It is advisable to book a property which is being established by a reputable developer or builder; in order to assess the quality of their work, as well as their track record, make the effort to go and view their previous projects.
To ensure the project’s authenticity, ask for a copy of the NOC that has been issued to the builder by relevant authorities such as DHA, KDA or LDA.
Before signing on the dittoed line, have all the legal documents vetted by a lawyer.
By Uzma Khateeb Nawaz