The real estate industry of Pakistan could be a little tricky if you’re new in the scene of land purchasing and selling. One wrong decision and your investment could be in trouble for years and you’ll have to bear the loss. So it is very important that you have the right knowledge when purchasing a Plot For Sale for any future purposes by minimizing the risks attached to plot purchasing process. We, at Konstruct Marketing, offer our real estate knowledge for investment property or when you plan to purchase a plot for constructional purposes. Read on and discover what are the risks attached to a plot for sale when you consider agriculture land and convert it for a commercial or residential premise.
When purchasing a plot for sale in an agricultural area, be sure to check if the person who is selling you the land is the real owner or not. In real estate business, the biggest concern is to verify the ownership of the seller as there could be consequences that can jeopardize your purchasing decision. There could be a seller posing as a fake owner or there could be a third party claim on that piece of land. Just make sure that you’re dealing with the real owner and there are no third-party claims on that plot for sale.
You might want to construct a commercial building on that plot for sale or your plans include a residential community that meets the new architectural demand. But before you clear the payment and start constructing on that land, it is advised to ensure that there are no zoning risks involved. By that, I mean you should check with local authorities to ensure that your plans are not against the master plan of the area and you’ll have no legal difficulties later on.
The term CLU stands for “change of land use” which is basically a license issued by the land development authorities of that city or state. When you’re engaged in the purchase of a plot for sale in an agricultural area, you need to obtain this license. Usually, the seller will have this license before selling the plot for sale and if you don’t find any such license, this is a red flag for you to stop the deal right away.
It is a good practice to visit the site yourself before making any final call. What usually happens is that the area measured on the papers is less in measurement when you visit the site. This means if you continue the deal, you’ll be paying more according to measurements on paper but will have a smaller area of that plot for sale in actual. And I don’t think that you’d want to make such mistake to pay extra for a small area of plot, right?
The real estate is not for anyone looking to make quick profits as it requires patience to generate revenue out of your real estate property investment. When you plan to purchase a plot for sale, you should keep in mind that it cannot be liquidated on short notice. A wise approach is to purchase a plot for sale only when you can wait for at least 5 years or more till the prices are increased and the market is strong.
When purchasing a plot for sale, you should keep in mind certain factors that may jeopardize your property investment. For instance, you might select a location that is away from the city and will require time to attract an industry around it. Now the problem starts when the land price doesn’t increase due to economic factors or no business opportunities in that area. This may put your land price value on a hold for an uncertain period and you might want to bear the losses. So always select a location that promises these essential factors for land value appreciation in the future.
One very irritating situation that land buyers face is the encroachment risk that is attached to real estate investments. This means the plot for sale that you purchased has attracted stall owners and peddlers that have formed an unauthorized market around your plot. This tendency can put your property at risk if they occupy some of your plot’s area and reduce the measurements of your plot.
NO RENTAL INCOME
One of the very prominent risks attached to a plot for sale is that you cannot generate an income through monthly rents. As the plot has no construction and is of new use for anybody so you cannot generate any rental income from that piece of land. So if your intentions are to generate rental incomes out of your purchased property then a plot for sale might not be a suitable option for you when we talk about investment property.
We offer insights and price updates of major housing schemes in Lahore and you can contact us for further risks attached with plot for sale on the details given below. Simply dial +92 42 37188542-3 or write us on firstname.lastname@example.org now for more updates.