Are you looking for your next real property investment in Pakistan?

You can save your money by investing in real estate projects. These projects have multiple benefits.

You can use real-estate projects in many different ways. It can be rented out, it can be used to run business, it can be leased out, it can even be rented out. You can also list your spare rooms on websites like https://www.parkone.com.pk/. Real estate properties are an excellent opportunity in Pakistan, and for all the right reasons.

Now, the real question is:

Do you prefer to invest in an existing or under-construction project?

Each of these real-estate projects has its own pros and cons.

This blog will help you understand the strengths and weaknesses of each project so you can make an informed decision.

Continue reading to learn more about the different types of projects and their workings.

Projects under construction:

Real estate projects in Pakistan are growing in popularity under construction. These are great options for those looking to invest in Pakistan's long-term.

Pros and cons of projects under construction:

Here are the top benefits of investing in an unfinished project.

Accessibility:
Projects under construction expensive comparable to houses that are already in place. Many new houses are being built. Housing societies Constructions are underway in Pakistan. New housing societies in Pakistan need to improve the infrastructure and facilities of the areas where they are located. These factors reduce the overall cost of the project.

Returns
Projects under construction are more popular than those that have been completed. Because they are often of older designs and have fewer amenities, old housing societies fall out of favor.

However, there is high demand for under-construction projects. Because of this increased demand, their returns are high. Construction projects have a longer window period. It takes a while for delivery to occur. You will get better returns if you buy a house closer to its possession time.

Use:
People looking to invest their hard-earned cash for the long-term often purchases under-construction projects. It is, therefore, safe to say that sub-construction projects are a great way to invest in long-term investment opportunities for Pakistan.

Cons

While the under-construction projects offer many benefits, they also have their drawbacks.

Higher risk
Under-construction projects have a higher risk ratio than those in existing projects. Many cases have been reported in Pakistan where builders did not deliver the promised product. There are many factors that can delay the delivery of projects. These include frauds, scams, and lack of raw materials, labor strikes, legal complications, funding crunch, frauds, and other issues. These factors can delay the delivery of projects, which in the end will cause the client great suffering.

It is better to avoid such situations by investing in properties that have been approved by the local development authority. Not only will you be able to protect your hard-earned cash, but you'll also get good returns on your investment.

Discrepancy
A discrepancy in the finished product and the planned product is one of the biggest drawbacks to an under-construction project. Most builders in Pakistan don't deliver on their promises to clients. Only a few companies can guarantee timely completion and possession for their clients.

Tax questions:
A tax incidence of five percent will apply to the purchase of an under-construction property. Stamp duty and registration fees will also have to be paid separately. This can lead to significant tax expenditures. Affordable homes under Rs 45 lakh are eligible for 1% GST.

These costs and duties add up and can increase the financial burden for a person.

Current projects
Existing projects are just like under-construction projects. They have their pros and cons.

Pros

These are the top benefits of real estate projects in Pakistan.

Available:
Existing projects can be moved in immediately, unlike under construction. Existing projects have minimal or no waiting time and can be moved in quickly. The window period for developed projects is shorter.

You don't have to wait months or years for developed projects in Pakistan. All of it is done for you. You will then need to pay the price, comply with all legal requirements, and move in.

It's less risky:
You don't have to take risks with existing projects. You get what you pay for when you invest in these projects. It is possible to visualize the final product and make an informed decision.

Take, for example. You have the option of visiting a mall to see its layout, facilities, and amenities before you make an investment in it. You can make better decisions when the product is directly in front of you.

Infrastructure
Most projects have a well-established infrastructure. The existing projects are often located in well-known housing communities in Pakistan. They have all the amenities and facilities that are required to lead a peaceful and happy life. These factors increase property value.

Use:
People who live in existing projects often use them to build their own homes or start businesses. It is clear that the intention behind purchasing an existing house is personal.

Cons

There are also limitations and drawbacks to existing projects.

It's expensive:
When compared to projects that are under construction, ready-to-sell real property projects in Pakistan tend to be more expensive. Because of the high demand for these projects, sellers charge a premium. Existing real estate projects can be expensive for those who are on a tight budget.

Return on investment
Existing real estate projects offer moderate to low returns. The reason is that commercial and well-established buildings age over time, and they lose their value. People prefer to invest their money in high-sales projects, rather than old projects that have aged over time.

This reduces the return of investment and investors receive a lower return.

Additional charges:
Existing projects can incur additional costs. You will need to cover the costs of renovating an older property if you decide to invest. You will also need legal services to transfer an existing property to your name. These costs can add up quickly and cause financial hardship.

These are the pros and cons of both existing and under-construction projects. This comparative blog should provide valuable insight and help you make informed decisions that will benefit you in the long term.

You can leave comments below if you have any questions. Our team will respond as quickly as possible.