Owning a piece of untainted natural habitat.
Are you tired of the rush filled streets, din of wild traffic and smoke filled air that you breathe in every day? Do you want to escape the congested and overcrowded cities? A problem that plagues majority of city dwellers today and what do they do, they dream of escape to scenic, lush green fields and hills where fresh air is available in abundance. Most of these people head to hill stations, Murree in particular. What could be better than that? Well owning a verdant farmhouse and being surrounded by grassy lawns, a refreshing pool, fresh clean air and idyllic peace. So, buy a piece of tranquility, buy a farmhouse.
Why buy a farmhouse in Pakistan?
Like all other countries in the world Pakistan is faced by ever expanding cities and mass migrations from rural to urban areas. Despite fast paced infrastructural development cities are still overcrowded and polluted. Take the example of Lahore, one of Pakistan’s major metropolitans, as of 2014 Lahore’s population has increased to a whopping 20 million and it is one of the most polluted cities of the world. So the best escape from these stress inducing surroundings is a farmhouse on the outskirts of the city.
Why people buy farmhouses? To get away from their tedious routine to a relaxing atmosphere and secure a viable source of future income. In common perception farmhouses are now a symbol of ‘elite living’ in Pakistan.
Farmhouses provide wide open yet planned spaces with all the basic necessities, and privacy to boot. They provide ample opportunities for indulging in a variety of outdoor activities. So, for a decent sum, you have the chance to spend mentally and physically relaxing time with family and friends.
Are farmhouses good investment opportunities?
You must be aware of how people use farmhouses for occasional picnics, seasonal vacations and wedding events. But in recent years, farmhouses have emerged as a popular, feasible investment option in Pakistan.
Are farmhouses good investment option in Pakistan? Farmhouses are located outside cities, therefore they cost around 50 to 70% less than other urban properties. Hence people with lower budgets can also purchase farmhouses. Plus, they bring a steady income if they are rented out and a sizeable profit if resold.
If farmhouses are cheaper than urban properties than how are they good investment? Farmhouses require less capital allocation for development than city housing properties do. Plus, their popularity guarantees that they are not only rented out easily but bring in huge sums of rent per deal. Farmhouses in Pakistan are especially popular during winter months when many acquire them for wedding festivities. In spring they are used for picnics and quality vacation time. From a statistical viewpoint, farmhouses see an average increase of 10 to 15% in value and they bring in around 15 to 20% return within a year.
Things to consider
If you want to purchase a farmhouse, you should keep in mind that it is a big decision and requires major lifestyle changes. So think it through carefully and ask yourself are you ready to live a life of labor. Farmhouses require constant maintenance, so even if you hire help, you still have to do a lot on your own, for instance you might want to tend to the gardens and would certainly have to supervise general upkeep of the farmhouse. So take the leap only when you are ready to put in your time and money.
However, purchasing a farmhouse in Pakistan also entails investigation into the facilities available at the farmhouse. You must look into, for instance: the availability of clean uncontaminated water, proper sewage facilities, sui gas and electricity.
Lastly, you must check if telecommunication services are available in the area or not.
How to buy a farmhouse in Pakistan?
Now coming to the million-dollar question: How does one buy a farmhouse in Pakistan? According to research some of the most worthwhile and popular farmhouse lands are located in Lahore and Karachi. However, one no longer needs to buy land and then develop it, instead one can buy a fully equipped, developed farmhouse in Pakistan.
Buying farmhouse property can be tricky
In the current economic climate land is the most lucrative investment option available to Pakistanis. However, frauds and scams are a major threat in the sector. So you have to exercise complete caution when purchasing farmhouses in Pakistan. One important precautionary measure in this regard, is to run a thorough background check.
Back ground research
Before acquiring land or a farmhouse you must do complete research, learn the trends of the market, follow the latest updates and news in the farmhouse market. For this purpose, you must research the laws governing farmhouse purchase in Pakistan.
Next you should know the most worthwhile and popular farmhouse locations in Pakistan. Since farmhouses are the most sought after real estate in Pakistan, more popular the location, the easier it will be to make a profit on.
Once you have the site in mind, check out the realtors dealing in that area. Which real estate company should you buy farmhouses from is the key question. In-depth research into the companies functional in your desired area is necessary. You should investigate each company’s worth, their past dealings, reputation and most significantly profitability of the farmhouse land on sale. Also research the future prospects of the locality specially the possibilities of growth and future monetary value.
You must also pay special attention to the services accessible in these farmhouses. It is advisable that you evaluate the above mentioned information in light of the country’s economic conditions, to reach an informed decision.
Keeping tabs on the prevalent prices of farmhouses in Pakistan, especially the desired area, in essential. Sellers in Pakistan are known to charge prices higher than market rates. To protect yourself against these frauds a survey of the market would tell you the correct value of farm houses in Pakistan. For this purpose, contact real estate experts and estate agents, specifically the ones specializing in farmhouses sales.
A good real estate agent is a blessing.
Your closest ally in all of this, is your estate agent. Make sure that he/she is dependable, honest and reliable. So, when buying farmhouses in Pakistan, you should run a background check on the estate agent. Study their past records, repute and reliability. An agent’s track record will certify whether they are reliable or not.
In Pakistan several companies are renting and selling developed farmhouses. Examining their past records can help ensure that you are not falling into a trap. An experienced agent and agency can provide security against fraudulent dealings and help complete your transaction in a secure, transparent manner.
Physical viewing in real-time is imperative
You should never trust a transaction that is restricted solely to paper. Instead make a point of visiting the farmhouse in real-time, so you can see the accommodations and available services with your own eyes.
But exercise caution when visiting the farmhouse. Have a surveyor accompany you to the site? Allow them to inspect the property closely, so he can warn you about any defects and make sure that the property you buy is free of pitfalls and flaws.
Upon completion of the initial background research and the surveyors green signal, you are ready to purchase a farmhouse in Pakistan. Now comes the time for negotiating the price. It is one of the most significant parts of the entire process.
But before you start negotiations, meet the owner in person and have a detailed talk about the property. Do not hesitate to ask why the owner wants to sell the farmhouse, the amenities attached to it, any legal issues pertaining to the farmhouse. The seller would normally quote a higher price, use your knowledge of the pricing trends to bring the price down.
Your payment of a small percentage of the total secures you the farmhouse, as it assures the seller of your intention to buy the farmhouse. This amount is decided by mutual consent. Some sellers demand 5% of the cost, but it is negotiable.
However, make sure that all your dealings are properly documented and signed.
Secure transfer letter
When purchasing farmhouses in Pakistan be sure to check that the property has actually been transferred to your name. Pakistani realtors are known to sell property files in the name of actual property, so get a secure letter of transfer before making any payment.
As you would know a pay order is like a promissory note issued by the bank on behalf of the buyer. When purchasing farmhouses in Pakistan secure your investment by using a bank pay order. This minimizes the risk and ensures transparency of the transaction.
Last but, not the least, do not forget to get your copy of the sale deed.
All said and done. You now own a profitable farmhouse in Pakistan. Enjoy!!