Is Property in Pakistan Easy to Buy or Sell?
For buy or sell property in Pakistan, it is said that selling property is more accessible than buying, and the same goes for Pakistan. This is likely because, in most situations, while dealing with property sales, the sellers are exempt from paying erratic taxes and development fees, among other things. Not to mention that selling property in Pakistan isn’t always a stroll in the park. In the real estate market, you must outperform the competitors.
The reason for this is that the property market is saturated with sellers. However, by implementing the tactics outlined here, you can learn how to sell or buy property in Pakistan sensibly, swiftly, and profitably. If you have a home to sell or are looking to buy a property and are reading this, now is the moment to fill your cash-flow bucket.
Why Is It Not Easy to Sell Property In Pakistan?
Buying Property in Pakistan is accessible only for the upper class but is ridiculous for the lower class. For example, if a person who has no information about this sector goes to buy any plot or home, he is more likely to face fraud because of the no-tracking system in Pakistan.
The rate for an area is 10 lac, but the dealer can say it is worth 15 lac, as the government has no input in this cause. So, the first main point is that Rates are not Uniformed. The other issue is, that fraud occurs when a single piece of land is sold to more than one person, until or unless you are clever enough to investigate through ownership details etc.
Then the registrars or in Urdu ( Patwari). He is the person who is responsible for making the exact location of the plot. For example, on the area of 100 acres, you have a plot of 10 Marla. It is not sure in its initials to make the exact measurement of your plot, where the phase is going. The agent can take you to any random area of the upcoming society and tell you that this land is yours. But after the completion of the social project, many buyers of the plot are left bare-handed after finding that there is no area left, and the area has already been sold to someone else.
What Role Is the Government Playing To Make This Sector Safe & Sound
In the real estate sector, anyone without any prior knowledge is entering this sector because they have the perception that this sector is creating a lot of wealth. They create their own rules, just like an Idiom that states, “Whatever sails your boat.” The government has taken a particular interest in the growth of the real estate industry. As a result of this interest, additional pro-real-estate policies have been enacted, attracting more potential & reliable investors.
The government of Pakistan has taken various actions to improve the real estate sector. Persons who own an immovable property with a land area larger than or equal to 500 square yards and a flat with a covered space of 2,000 square feet or more are required to file returns under the Finance Act of 2009. The decision was made to broaden the tax base.
In 2010, the Federal Reserve Board issued a circular authorizing provinces to collect Capital Value Tax (CVT) on immovable property. It is a tax on the capital value of the purchased asset that the buyer pays at the time of purchase. Capital gains tax (CGT) on sales of immovable properties with a holding duration of fewer than two years was introduced in 2012 by the Finance Act 2012. This meant that persons who had previously been exempt from paying taxes in the home construction industry were now able to do so.
This significantly impacted the real estate market, slowing the sale and acquisition of newly constructed properties. However, the plan paid off in the long term, as the government’s tax collection grew due to the move. In 2014, the law was changed to impose a 10% CGT on the sale of properties withholding periods of up to one year and a 5% CGT on that withholding duration of up to two years, with no CGT imposed on properties withholding periods of more than two years.
Non-filers were forbidden from purchasing a property worth more than Rs 5 million after an amnesty scheme for the reporting of undeclared assets was launched in 2018. All of these real estate policies have had a negative influence on the sector in the long run. The government strives to improve tax revenue collection without realizing the ramifications of slowing down real estate growth because the industry is considered a tax haven for ill-gotten money.
The real estate business is as complicated as any other investment sector because estimating property prices and future earnings is extremely tough. For this purpose, the investor must have access to precise statistics about current real estate market prices, which is a challenging assignment in Pakistan because the property sector’s most significant difficulty is a lack of simple access to trustworthy information. On the other hand, instead of examining themselves, our investors succumb to the enticements presented by fraudsters. If people invest wisely in this industry, they will not have to deal with fraud situations.
Stay tuned to Feeta Blog to learn more about the property in Pakistan.
Guide for Obtaining a Domicile
Obtaining a Domicile, The domicile certificate was introduced in 1951 to register Pakistani citizens, according to the Daily Express, a Karachi-based daily (26 Apr. 2012). A domicile certification is issued for admission to state colleges (Academic 5 Dec. 2012; The Express Tribune 26 Apr. 2012), school systems universities (Academic 5 Dec. 2012), and government jobs, according to authorities (The Express Tribune 26 Apr. 2012). A residence certificate also is necessary for admittance to higher education institutions, according to other sources BBC 7 June 2012; University of Engineering and Technology 2012.
Federal Government could grant a certificate of domicile to every authority in connection with whom it is satisfied that he may have ordinarily resided in Pakistan for a period of just not less than one year leading up to the making of the application but has acquired a domicile within it onto an application being made to it in the specified format and containing the read the instructions. (Section 17 of Pakistan’s 1951 Constitution).
Obtaining a Certificate of Domicile (Certificate of Residence)
A certificate of residence can indeed be granted by the federal or provincial government, or any district magistrate authorized by the provincial government, as per the Pakistan Citizenship Rules, 1952. Pakistan 1952, Sec. 23. So according to Pakistan’s Citizenship Rules.
- An application for a certificate of domicile should be made in duplicate in Form P, and must be preceded by an affidavit affirming the truth of the statements made in it, and that the applicant still hadn’t migrated to India after March 1, 1947, or even that, having done as such, had brought back to Pakistan under a permit for relocation or permanent return issuance via an officer auth.
- Any authority with whom an application is viewed has the right to require whatever evidence it deems essential to fulfill itself that the facts presented in the application are accurate and also that the applicant has also been continuously citizen in Pakistan for at least yet another year and intends to live there permanently in Pakistan.
According to sources, when applying for a job
According to sources, an applicant needs to provide the following information when applying for a certificate of domicile, his or her name; parent’s name; place of residence in Pakistan; previous address from outside Pakistan; date of arrival at the place of domicile; marital status; the name of spouse; names of children and one’s ages; barter or occupation; and identifying marks. The above information is included in a certificate of domicile obtained from the police website in the town of Jhelum in Punjab Province, and also the individual’s portrait in the lower right-hand corner of the certificate.
What is a Domicile Certificate?
In general, a state government issues a domicile certificate or a residence certificate to verify that now the individual who possesses the certificate is a resident of the state or union territory stated on the document. A woman who was not born in a Union territory but is married to a man who is a legal citizen of that State or Union Territory or is qualified for a State’s or Union Territory’s Domicile Certificate also is able to qualify for one.
A domicile certificate is a certificate that allows people to obtain numerous benefits such as education, employment, as well as other benefits. Resident Quotas inside the Public Service and educational institutions, and also jobs where area residents are preferred.
How to apply for a domicile in Islamabad?
Per the official government website of the Islamabad Capital Territory, anybody who has lived in Islamabad for a year or longer is able to qualify for an Islamabad domicile. Unless they already hold a domicile from some other city, they must have the existing document annulled while applying for just a fresh one. The following is a list of documents needed to obtain a Certificate of Domicile in Islamabad.
Applicants above the age of 21 should submit the following information
- Proof of profession or trade
- two pictures (passport size)
- A photocopy of the applicant’s CNIC is required.
- A copy of a father’s or husband’s CNIC is necessary.
- one rental agreement from the beginning (electricity, gas, or telephone)
- A copy of proof of address in Islamabad, such as a lease agreement or an allotment letter
- If you do have children, a copy of Form-B is needed.
- In the case of government workers, a letter of permission from the department is required.
- a photocopy of your SSC or matriculation certificates
- A copy of a Marriage Registration Certificate in the case of married people.
- A NOC from the native district is required if you have a dual address on your CNIC.
Applicants under the age of 21 must complete the following steps
- 2 photos of passport size
- A photocopy of the applicant’s CNIC or Along card is required.
- A copy of the mother’s or father’s CNIC is necessary.
- 1 copy of a parent(s)’ Domicile Certificate, upon which the applicant’s name appears
- A photocopy of your SSC or Matric certificate, as well as evidence of your trade or occupation
The Application Process For Domicile In Islamabad
The following is a step-by-step guide to applying for Domicile in the capital city.
- Send a PKR 200 challan to the National Bank of Pakistan’s F-8 Markaz branch or the State Bank of Pakistan’s C-03806 District Magistrate Islamabad account.
- Bring your challan receipt, application form for domicile document, as well as other necessary documents to a Citizen Facilitation Centre in Islamabad.
- Wait for your round by taking a token from the counter.
- Pay the processing fee of PKR 500 at the desk whenever you come in for data entry.
- Your e-receipt will be emailed to you.
- Pick up your Domicile Certificate at the Citizen Facilitation Centre mostly on an e-receipt date.
It is important to mention that when applying for a Domicile in Islamabad, the applicant must appear in person with his or her authentic documentation.
The following are the contact details for the Citizen Facilitation Centre in Islamabad
- Address: G-11/4, Islamabad, ICT Administration Complex
- Phone: 051-9108194
- Submission Timings: 9:00 a.m. to 1:00 p.m. Monday through Thursday | 9:00 a.m. to 12:00 p.m. Friday
- Delivery Timings: 9:00 a.m. to 3:00 p.m. Monday through Thursday | 9:00 a.m. to 12:00 p.m. Friday
- Processing Time: 7 days
- Total Fee: (Challan + Processing Fee) PKR 700
How To Apply For Domicile In Lahore?
Those interested in obtaining a Domicile in Lahore should go to the provincial government’s e-Khidmat Markaz.
Documents Required In Lahore For A Domicile Certificate
Let’s have a look just at the documents required to achieve a Lahore Domicile.
- Forms P and P1, duly completed and signed by the applicant
- The affidavit submitted by the applicant and certified by Oath Commissioner on PKR 50 stamp paper (Optional)
- Two passport-size photos with such a white backdrop are needed.
- CNIC or B-form documentation of the applicant
- Bank receipt with such a copy of the father’s or husband’s CNIC AC Verification Form, that might or might not be certified.
- At least one of the Entitlement Documents listed below will be required.
- Documents proving ownership of property Fard, ownership paperwork, or a housing registry, for instance.
- Electricity, gas, and phone bills
- Certification of residency (rental agreement)
- Documents Academic Disciplines (Matriculation or above certificate)
- The applicant’s vote is registered on the voter list of the UC.
The Domicile Application Process In Lahore
- Have a challan form from the e-Khidmat Markaz or the nearest National Bank of Pakistan branch.
- Pay the PKR 200 challan
- Collect the required Domicile request form from e-Khidmat Markaz. You can also obtain it ahead of schedule from the e-Khidmat Markaz official government site.
- Fill out all the Domicile Application Forms and link them with your other documents.
- Once you’ve appropriately diagnosed your documents and applicant, you’ll send an automated.
- Enter your tracking ID on the e-Khidmat Markaz website to track your application. You could also use their SMS Gateway by sending your application ID to 9100, calling their toll-free line, or installing their mobile app.
- Get your Certificate of Domicile (Certificate of Residence).
To apply for just a Domicile in Lahore, the applicant has to go to the center in person.
The following is the list of the e-Khidmat Markaz in Lahore.
- Lower Mall, Anarkali, Lahore; Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (Town Hall), Jinnah Hall (T
- 042-99214572 is the phone number to call.
- 0800-09100 is a toll-free number.
- Monday through Saturday, 9:00 a.m. to 5:00 p.m. Monday through Friday, 9:00 a.m. to 5:00 p.m.
- Lunch Break: 1:00 p.m. to 2:00 p.m. on all days except Friday | 12:30 p.m. to 2:30 p.m. on Friday
- PKR 200 (total fee)
- 16-day processing time
In Karachi, the procedure for obtaining a domicile and a PRC is as follows:
But if you’re a Karachi resident who requires a domicile and PRC (Permanent Residential Certificate) for educational or employment purposes, deliver the following documents to the Deputy Director’s Office in your district.
Karachi’s Domicile and PRC Requirements
- Unattested five (5x) pictures (passport size)
- CNIC (original and copy) – Attested (for those under the age of 18 years, submit a copy of Form -B).
- Verified copies of all academic transcripts back to the modern year
- Applicants under the age of 21 must provide copies of their CNIC and their father’s address.
- In the case of the government employee, a copy of their employment certificate which has been attested is required.
- Attested proof of residence (electric or gas bill, if on rent copy of rent agreement)
- For married males or females, a copy of their spouse’s CNIC, copies of their children’s identity documents, or Form B – Attested
In Karachi, how to go with Domicile and PRC
- At National Bank, D.C. Office Branch, pay a charge challan of Rs. 200/-.
- Place just one stamp on every copy.
- Before submitting applications for domicile, have it attested by an Oath Commissioner?
- If necessary, the head of the department can demand anyone else document as proof.
- Domicile and PRC Instructions in Karachi
- You must bring your original documents and a set of photocopies with you.
- Domicile business hours are 9:00 a.m. to 12:00 p.m.
- In the case of applying for domicile and PRC, the applicant’s CNIC must have an address in the same Karachi district.
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How to Avoid Long Home Selling: 5 Tips to Sell Fast
As an investor, you may want to diversify your portfolio from real estate to stocks, bonds, crypto or many other things. If you already have an old rental property, vacation home or any property you want to sell quickly to get quick cash for your next investment, then you need to find ways to avoid a long sale.
In this article, you will learn some expert tips so that you can sell a house quickly.
1. Avoid Dealing With Consumers
Consumers are not everyday shoppers. They are private people who are looking for their dream home at the lowest price. They want a house in good condition without significant roofing, electrical, plumbing, drainage and foundation problems. Consumers are also the most demanding type you will ever meet.
According to the June 2020 statistics of the National Association of Real Estate Agents (NAR), the typical U.S. home remains on the market for about 24 days and 46 days to close a purchase loan agreement gives an average of 70 days from listing to closing. These statistics are based on traditional home sales. Why do you wait so long if you have other options?
The benefits of avoiding dealing with consumer shoppers include the following:
Deal with investors like you:
You can avoid dealing with consumer buyers, which can prolong home sales by dealing with a buying company, such as Buyers of Burlington Houses. Home buying companies are managed by investors like you, buying and selling homes to the commercial market. They aim to make money with modest profits by buying and selling real estate at a low price instead of selling expensive homes for significantly high profits.
Save time and money:
Avoiding consumer shoppers can save you money from inspection, listing, repair and other expenses. On the other hand, selling a home to a real estate investor is time-consuming and cost-effective because you will be spending money for nothing.
Sell Your Home Quickly:
Private individual buyers need nutrition, constant monitoring and monitoring. They are difficult to handle, unlike cash buyers who are simple in offering quotes. Either you accept the offer, make a counter-offer or reject the offer.
2. Promote Your List Online
If you are used to listing properties in newspaper advertisements, the time has come to list your home for sale through different internet channels. This will strengthen your list and increase potential buyers.
It’s a good idea to create a virtual tour so that potential buyers can simply click on the link to go through your house online. If you plan to invest in up-fixed real estate and become a pinball machine (buying houses at lower prices and then renovating them to sell at a higher price), promoting your home with a virtual tour is a good idea. You can hire a professional to take care of this job for you.
Avoid being inundated by many surveys listing your property right online, answering basic questions from potential buyers like the following:
- The address of the property for sale
- The sale price
- Number of bedrooms and bathrooms
- Amenities included
- Honest shortcomings
- Clear (high-resolution) photos
3. Hire an Experienced Seller-Real Estate Professional
You’re probably too busy managing your business and other investments and don’t have time to deal with long-term home sales. You can hire a real estate professional (real estate agent or real estate agent) who has experience in dealing with home sellers for your best interest.
Choose an experienced real estate professional from a good company by following these tips:
Real estate professionals are qualified to handle real estate buyers and sellers. Be sure to evaluate the testimonials from your prospects to avoid problems. Look for licenses, permits, certificates and membership to respected properties.
When you have limited your choices to at least two real estate professionals, interview everyone to get to know them. Find out who among them has the best gentle skills. Don’t hesitate to ask questions such as if they are experienced in helping investors in the past. You may prefer to hire someone you are comfortable talking to, someone you know real estate with a keen business instinct.
4. Make Necessary Repairs
Buyers always inspect for defects more than the comforts of a home for sale. So it makes sense to complete the necessary repairs to sell a house quickly. Hire a professional to inspect your home and make the recommended repairs or improvements. Don’t forget to get a certificate so you can present it to a buyer who may have doubts about the longevity of your roof system or other home appliances.
The necessary repairs you need to make to avoid a long home sale include the following:
- Roof Repairs: Repair cracks and holes or replace shingles and worn-out drains.
- Pipe Repairs: Repair leaks and clogged toilets, pipes and sinks.
- Electrical Repairs: Repair faulty wiring and replace old electrical outlets.
- HVAC repairs: Check for leaks, and damaged thermostats, and replace capacitors.
- Graduation and Drainage: Drain regularly as needed.
5. Know the Perfect Time to Sell a House
Investors should always know when to strike while the iron is hot. In general, the best time to sell a house to maximize return is from May 1st to 15th. Properties sold in the first half of May tend to sell six days faster for $ 1,600 more than the average listing. Homes listed on Saturday get 20% more views during the first week on the market compared to homes listed on Tuesday.
The right time to list and sell a house can make a big difference in the sale price. Market circumstances can affect the perfect time to list a home, such as mortgage rates, tax incentives, and job growth. List your house on the market as early as April 1, depending on your location, or until July 15.
As an investor, you want to avoid a long-term sale of homes by selling your property to a buying company. Use digital technology to your advantage by promoting your list online and creating a virtual tour.
If you are too busy with your other investments, hiring a real estate professional will save you from the hassle of selling a home. Make sure you are dealing with an experienced real estate broker or real estate agent, someone who will protect your interests.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.