The property or real estate sector has been growing constantly in Pakistan. It has become one of the safest investment options with maximum profit. People working abroad usually look forward to the investment opportunities that provide them with a good ROI. That’s why the property investment has attracted them.
People from abroad are looking for opportunities to buy property in Pakistan. Now, it is simple to avail this opportunity. There are many projects available in Pakistan with smart investment options. It includes both residential and commercial space or a plot for future development.
The question is, are these projects safe? Well, it depends on a lot of factors. And in this blog, we are going to tell you about all the steps you should take for a safe investment. There are projects like Bahria Sky and Bahria Sky 2 by OZ Developers that offer a secure future. Grab your cup of coffee and keep on reading.
Understand the Legal Framework for Overseas Buyers
Many overseas Pakistanis say the biggest fear is buying a property they’ve never physically seen. The main problem that overseas Pakistanis face is that they are not present in Pakistan. That’s why they don’t know the current legal framework that governs property transactions. As a non-resident of Pakistan, there are certain conditions that you have to meet to buy a property from abroad.
If you are an NRP (Non-Resident Pakistani), then you can buy property without any restrictions. NRP can buy any residential and commercial property.
Foreigners are allowed to buy property only with government approval. The approval is case-by-case and depends on security clearance. Many housing societies do NOT sell to foreigners without clearance. The rules differ across provinces. They may need approval from the Interior Ministry, the Board of Investment (BOI), or specific development authorities, depending on the nature and location of the property.
If you are a foreigner or if you don’t have anyone in Pakistan, then it’s a wise step to hire a relevant professional lawyer. This will help you to keep things on paper, align, and save you from any legal issues.
Set a Budget and Know the Costs Involved
The most important part while purchasing a property in Pakistan from abroad is the budget. Yes, you read it right. The price of property in Pakistan varies from city to city, from area to area. The property price will be higher in Defence Lahore as compared to Valencia Town Lahore. It also determines what size of property you will get in your budget.
The budget doesn’t ever mean the price of property only. There are additional costs too, which depend on the price of the property you are going to buy. Let’s discuss them:
- There is a stamp duty, a government tax that applies to the transaction of property. It depends on the price and mainly ranges from 2-3% (may differ from area to area).
- There are registration fees which differ from city to city and may also include the fees for title deed registration.
- If you are buying a property through a real estate agent or broker, they will also charge their fees in terms of commission. It may vary from 1% to 2% of the total property value.
- If you have a plan to rent out the property, then you have to set a proper maintenance budget for that and the annual property tax.
Choose the Right Location
The most important factor that has a direct influence on the real estate industry, especially in Pakistan, is location. But why? Location has a direct impact on a property’s value, investment potential, and lifestyle.
Major cities of Pakistan, like Lahore and Islamabad, have higher property rates as compared to Gujranwala or Faisalabad. You must be thinking of intra-city values, which also change with the location. The property rate in some towns with premium locations like Defence in Lahore is higher than that in Al Kabir Town.
Do you want to learn about some main pointers that you consider while buying a property in Pakistan from abroad? Some of the main ones are listed below:
- Proximity to Major Roads and Transport Links
- Future Development Plans
There are many notable projects, especially in Lahore, which offer a great ROI and a luxurious lifestyle with affordable rates. For example, Bahria Sky and Bahria Sky 2 are the two projects by Pakistan’s leading builders and real estate developers, OZ Developers. They have the prime location with world-class amenities and the best proximity to daily life needs.
Research and Choose a Trusted Developer
The reputation of developers plays an important role in the quality and security of your investment. You are not physically in Pakistan, that’s the thing of which some realtors took advantage of on their own. They only care about their commissions and will always guide you to the projects on which they make the most money.
Think about this for a moment. How will you feel that your hard-earned money has not been invested in the right thing? That’s why opting for a trusted and reputable developer like OZ Developers reduces all types of risks linked with purchasing property.
Use Trusted Real Estate Agents or Online Platforms
Many people like you living abroad use online platforms to find trustworthy developers. There are many websites and online platforms that are the most engaging ones. But the question is, can you find a trustworthy one on these platforms? The answer is 50-50, and sadly, more on the negative side if we do some research.
So, what should you do?
- Look for past projects
- Check for good reviews
- Verify their credentials
- Consult with local agencies
And many more. Wouldn’t it be great if there were an option to overcome all of these complexities? That’s why OZ Developers has taken the initiative to provide the best and affordable property projects to customers living abroad and in Pakistan. They are on track to complete commitments ahead of time. They have not only offered residential apartments but also commercial properties for future investment. Invest in your lifestyle with Oz Developers.
Financing and Payment Options
Once you have found your dream property, it’s time to pay for it. There are a lot of options available, which might provide you with a little soft advantage. Some of the Pakistani banks and financial institutions offer financing options for overseas buyers. You can contact your relevant bank to have the updated information on this if you are willing to use this option.
You can obviously pay the upfront fees or full price as a lump sum. There are many projects that offer installment plans. Like Bahria Sky 2 has opened its booking with a 3-year installment plan. The rest you can pay in easy installments. A great opportunity for a secure future.
- 25% Booking
- 3 Years
- 1% Monthly
- 5% Bi-annual
- 10% at Possession)
Verify Property Documents
Once you’ve found a property you like, always make sure to verify its legal documents. You’ll want to ensure that the property has a clear title, is free from any disputes, and is registered with the relevant authorities. You can ask your lawyer or your real estate agent to verify everything. You can also do a 3rd party verification.
Documents you should check include:
- Title Deed: Confirms that the seller is the rightful owner.
- Land Record: Confirms the legitimacy of the land or property.
- No Objection Certificate (NOC): Confirms that the property has no legal disputes.
Complete the Transaction and Transfer of Ownership
Once all the necessary checks and processes are completed, you can proceed with signing the Sale Agreement and transferring the ownership of the property. These types of transactions go through a notary public or a lawyer. The Stamp paper processing, Registrar office verification, and Society/authority transfer processing should have been taken care of.
When the transfer is complete, you will receive a title deed which officially makes you the owner of the property.
Manage Your Property from Abroad
An important step that every owner, especially from abroad, must consider is property management. You can ask close family members or trusted contacts, or hire a property management company to take care of your property on your behalf. You can get everything managed from tenancy to property maintenance from abroad.
Conclusion
Buying a property in Pakistan from abroad can be a rewarding investment if the above-mentioned steps are followed. Remember, the rules, fees and everything may change from area to area, city to city. This guide has everything you must know before investing in your future. It doesn’t matter if you are willing to move back to live or looking for an investment. The projects like Bahria Sky and Bahria Sky 2 have options for all.
You have to make sure each step and process has been taken care of. All the documents are your passport to home ownership. Happy investing for your safe future. If you are looking to invest with OZ Developers, contact them now.