FAQ

NOTE: Frequently asked questions are listed questions and answers, all supposed to be commonly asked in some context, and pertaining to a particular topic. Kindly ignore any question or answer if it do not fit in any context. It is really hard to answer all questions for all contexts.

Question: Do I invest in Property or Not

Answer: Property investment is always fruit full and cannot return into loss if you have holding power. People are investing in Real Estate from centuries. In General property investment called as dead investment. Minimum investment for a residential or commercial property should not be less than 5 years. 10 years is more than enough time to get a hand some return in property investment.

Tips: Dealers / Agents / Builders / Authority (*Business) may highlight an investment for short time period for their interest or benefit.

*A business (also known as enterprise or firm) is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning.

Question: Where to invest in Lahore (or their relevant city), which society is best for investment or living?

Answer: Most common question asked by local as well as Overseas Pakistanis and very difficult to answer without knowing some basic information. In General every area of Lahore is best for living and investment for some one preferences. People are living in every corner or Lahore.

Dealers or Agents will only highlight the area / society which they are dealing with or where they can have more benefit or interest.

Tips: Only individual (buyer) can decide the best suitable area for living in Lahore for him / her self keeping in mind his / her budget, location priority, children education, earning / business location, other family members location or any specific priority (only can be define by an individual him / her self).

Question: What is the price for a plot or home (any specified area like: 5 Marla or 10 Marla) in Lahore?

Answer: Lahore is too big, it is really hard to answer this question in some words or some line. E.g. 5 Marla plot available in Lahore from 2 lacs to 70 to 80 lacs in Lahore for residential purpose.

Dealers or Agents will only highlight the area / society which they are dealing with or where they can have more benefit or interest.

Tips: Before going in market for research first decide your preferable area or society then do market research for rates.

Question: Which investment is better Residential or Commercial?

Answer: Definite commercial investment has more return in terms or value as well as rental income as compare to residential investment. Residential investments are for personal living or individual and commercial investments are for Business or Earnings.

Tips: Before making investment decision for Residential or Commercial first decide following things:

• Are you going to use this investment for both purpose (residential cum commercial)
• Population size of the area specifically for commercial investment
• Amenities / facilities available in the society for residential purpose

Question: Do I contact more then one agent / dealer for selling / buying decision (s)

Answer: Yes, you should not rely on single source of information. At least you should consult more then 5 agents or dealers before making any final decision for selling or buying properties.

Tips: You can use our Pakistan Property Directory to find out agents or dealers in Lahore in different areas or societies. Its better to contact the agents or dealers having offices in the relevant area or society. Dealers or agents sitting out side your desired area or society may have less information or non competitive rates as compare to dealers or agents sitting in the same area.

Question: Which investment is better Cash Payment or Instalment Package?

Answer: Again I do not have a one line answer for this question. No one else can give answer for this question, only individual can answer him / her self about this question keeping in view the following factors:

• Is your decision is for pure investment purpose to get some return
• Are you going to use this property for your own residence or business purpose
• When you need to construct home or building (after how many years)
• Can you easily pay instalments in time when due
• Are you ready to wait until project get mature and possession granted

Tips: Do not book plot or home if you are not able to mature it or cannot wait till possession granted. Investment may be risky and return into loss for pre mature selling (builder or agents / dealers are in “win win” position in this case, only looser can be the investor).

Question: What is a Society?

Answer: A Society can be defined an area having Urban planning with following amenities / facilities for residential cum commercial purpose:

Basic Amenities / Facilities:

• Electricity
• Water
• Gas
• Sewerage
• Road Network
• Commercial Area

Advanced Amenities / Facilities:

• Parks
• Play Area
• Hospital
• School
• Any other features like Golf Course, Club, Gated Area, In House Security etc.

There are Three Types of Society Developments in Lahore:

1. Developed / Operated by Authority (Lahore Development Authority (LDA) Faisal Town Lahore, Garden Town Lahore, LDA Avenue 1 Lahore, Johar Town Lahore, Allama Iqbal Town Lahore etc.) or Defence Housing Authority (DHA)
2. Developed / Operated by Cooperative Body (Wapda Town Lahore, NFC Lahore, Model Town Lahore etc.)
3. Developed / Operated by Private Company (Bahria Town Projects, Unban Developers Projects, Eden Builders Projects etc.)

Tips: Lahore Development Authority (LDA) is prime developer and true Master Planner of Lahore. The Lahore Development Authority was created under the LDA Act 1975 duly approved by Punjab Legislative Assembly. Previously it was Lahore Improvement Trust (LIT).

Defence Housing Authority (DHA) is a parallel authority in Lahore in cantonment area and delivered A class housing and commercial projects with state of the art developments and facilities.

Cooperative Bodies like Wapda Town, NFC Lahore, UET and many other also contributed best living standard for Ordinary Man at low cost.

Private Builders / Urban Planners like Bahria Town, Urban Developers Eden Builders and many other also delivered state of the art developments and facilities in Lahore.

Question: What is file?

Answer: Area which is not balloted yet or has been balloted and on ground or not on ground, and possession (where construction can be started immediately) is not granted by the builder / developer / Authority

Question: What is plot?

Answer: Area where physical possession (where construction can be started immediately) is granted by the builder / developer / Authority

Tips: In common after ballot dealers / agents sell or buy file with plot number and treat it as “PLOT”. But practically we have experienced that developer / builder / authority can change any full and final given plan due to any technical reasons / immoral practice or to oblige some one (specifically Govt. Officials / Army Officials, Authority Officials), in such case plot number change. I think that plot should be only consider where possession is granted and construction can be started immediately. Any investment before possession should be treated as “FILE”

Question: What are commission charges of agents / dealers for a sell, buy or rent deal?

Answer: In common it was 2% from both side (seller and buyer) but due to intensive competition in market agents / dealers accept 1% or as per mutual understanding / agreement between agents / dealers and seller / buyers. In Rent case it is half amount of the one month rent as per agreement or mutual understanding / agreement between agents / dealers and Tenant / Landlord.

Question: When Development will be started / completed?

Answer: Most common question after booking of plot / home / commercial by investors in any relevant society by Agents / Dealers. Usually to satisfy clients Agents / Dealers answer this question as per best of their knowledge (knowledge is always limited up to any extent). Agents / Dealers communicate with relevant society Front End Management Officials or Customer Relationship Officers (CRO) which usually are not aware of development schedule, development status and development completion timings. In result investors get dissatisfied due to mismatch of information or bogus information.

Tips: Always contact Builder / Developer / Authority directly to get right answer for such queries like Development Status, Completion of Development etc. Only Builder / Developer / Authority can have best answer for this question, only they can give exact or estimated date for development started and completion.