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Real Estate & Housing scams in Pakistan

pak-marine

ELITE MEMBER
May 3, 2009
11,402
-22
9,703
Country
Pakistan
Location
Pakistan
Housing scams
EDITORIAL
THE story of illegal housing schemes in Pakistan is one of untrammeled greed facilitated by a hollowed-out system of governance. All over the country, political bigwigs and members of the establishment in cahoots with a rotten-to-the-core land bureaucracy are making fortunes on the backs of ordinary citizens looking for a return on their hard-earned savings, or simply, a home to call their own. The police, as well as unsavoury operatives on the ground, provide the muscle for this ruthless land-grabbing industry that is a known catalyst for urban violence. While it is too early to speculate on the merits of the case, it has come to light that NAB’s Karachi chapter has requested its chairman to launch a fresh inquiry into the Fazaia Housing Scheme in the city for allegedly defrauding 6,000 people who have invested in the project. The amount involved, says NAB, is Rs13bn. This is not the first time that the housing scheme has popped up on its radar. Back in March 2018, an inquiry had been initiated into allegations that land had been illegally provided to its management for developing the project. Not surprisingly, that investigation went nowhere.

In October 2018, the scale of the problem of shady housing schemes was highlighted by a Supreme Court-ordered forensic audit that found an astonishing 5,492 such projects in Pakistan to be illegal, unregistered, or existing only on paper. The number of registered or licensed housing schemes stood at 3,432. In such a system, only unscrupulous individuals prosper. When revenue officials collude with the power elite, their services are rewarded with ‘files’ for plots, but the land development authorities themselves are deprived of revenue they are entitled to through development charges, fees, etc. In February this year, an audit report presented in the National Assembly noted that the Capital Development Authority in Islamabad had suffered a loss of Rs5,217.39bn on account of 109 illegal housing schemes in the ICT. Similarly, while Malir Development Authority officials conspired with Bahria Town Ltd to illegally exchange and consolidate land for its project in Karachi, MDA’s own finances were running so low that it could not afford to pay salaries to its employees.

Indeed, so entrenched is the corruption that often when it appears that action is being taken against land scams, it is actually retaliation against perceived reluctance to fall in line with the land mafia’s designs. An investigation by this paper a few months ago uncovered that a prominent feudal, unwilling to allow the ingress of multiple private housing schemes inside Jamshoro district — part of his ‘fiefdom’ — was chastened when illegal housing societies in which he himself is believed to have a stake were bulldozed by the provincial building control authority. Even among those with clout, real estate interests trump traditional centres of power. These Augean stables must be cleaned.
 

Manidabest

SENIOR MEMBER
Nov 9, 2015
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1,651
Country
Pakistan
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United Arab Emirates
Pakistani government should help out overseas Pakistanis in this area .... like they should provide genuine information regarding these societies in embassies
 

Abaadee

FULL MEMBER

New Recruit

May 30, 2020
1
0
Country
Pakistan
Location
Pakistan
Pakistani government should help out overseas Pakistanis in this area .... like they should provide genuine information regarding these societies in embassies
Housing scams
EDITORIAL
THE story of illegal housing schemes in Pakistan is one of untrammeled greed facilitated by a hollowed-out system of governance. All over the country, political bigwigs and members of the establishment in cahoots with a rotten-to-the-core land bureaucracy are making fortunes on the backs of ordinary citizens looking for a return on their hard-earned savings, or simply, a home to call their own. The police, as well as unsavoury operatives on the ground, provide the muscle for this ruthless land-grabbing industry that is a known catalyst for urban violence. While it is too early to speculate on the merits of the case, it has come to light that NAB’s Karachi chapter has requested its chairman to launch a fresh inquiry into the Fazaia Housing Scheme in the city for allegedly defrauding 6,000 people who have invested in the project. The amount involved, says NAB, is Rs13bn. This is not the first time that the housing scheme has popped up on its radar. Back in March 2018, an inquiry had been initiated into allegations that land had been illegally provided to its management for developing the project. Not surprisingly, that investigation went nowhere.

In October 2018, the scale of the problem of shady housing schemes was highlighted by a Supreme Court-ordered forensic audit that found an astonishing 5,492 such projects in Pakistan to be illegal, unregistered, or existing only on paper. The number of registered or licensed housing schemes stood at 3,432. In such a system, only unscrupulous individuals prosper. When revenue officials collude with the power elite, their services are rewarded with ‘files’ for plots, but the land development authorities themselves are deprived of revenue they are entitled to through development charges, fees, etc. In February this year, an audit report presented in the National Assembly noted that the Capital Development Authority in Islamabad had suffered a loss of Rs5,217.39bn on account of 109 illegal housing schemes in the ICT. Similarly, while Malir Development Authority officials conspired with Bahria Town Ltd to illegally exchange and consolidate land for its project in Karachi, MDA’s own finances were running so low that it could not afford to pay salaries to its employees.

Indeed, so entrenched is the corruption that often when it appears that action is being taken against land scams, it is actually retaliation against perceived reluctance to fall in line with the land mafia’s designs. An investigation by this paper a few months ago uncovered that a prominent feudal, unwilling to allow the ingress of multiple private housing schemes inside Jamshoro district — part of his ‘fiefdom’ — was chastened when illegal housing societies in which he himself is believed to have a stake were bulldozed by the provincial building control authority. Even among those with clout, real estate interests trump traditional centres of power. These Augean stables must be cleaned.
A detailed guide to buying a property in Pakistan without Fraud


Investments in real estate Pakistan can either be good or bad. You can make a fortune from a good property, while one can get stuck for years without a profit, or you can lose it. Most of that depends on your research, strategies, and often external variables, such as adverse policy or court rulings or delays in mega construction schemes.


Research is the key

Before you set your mind to buy any particular house in Real Estate Pakistan make sure that you do the proper research. Double-check the price of house that your real estate agent quotes to you. Another efficient and reliable way is to look for properties in online property portals such as Abaadee.com. They generate accurate results and gives you multiple choices to make your quest effortless.


Assess the market value of Property


The fair market value of a property determines what you would hope to earn if you sold it in private that day. This is important not only for sales but also to decide the stock and strength of your house.

  • Start looking on real estate portal information about recent sales or other immovable data for your area. Bear in mind that this information is not necessarily completely accurate and you can gather information from different sources.
  • Carry out a comparative business study on the property. A CMA can compare your house to equivalent properties and establish a comparative analysis of what your home may be worth, in comparison and identical, equal or identical properties.

Work with the Right Real Estate Pakistan Agent


This is the most essential aspect before you begin a property purchasing transaction. You can't believe whoever sits on the Real Estate Pakistan market. Start to pinpoint the established and licensed Real Estate Agents who had work for several years in the market. Try not to get enthralled by their lavish workplaces or skilled way of speaking.


Don’t forget to negotiate

It is important to ask your agent to schedule an appointment with the seller. It is safer to step away from the deal if you suspect your partner is trying to postpone the meeting. If the owner is already out of the country, you can ask your agent to allow you to talk with him before finalizing the contract.


Token money is essential to seal the deal


To finalize a deal, you have to pay 5 per cent to 10 per cent token money. At the time of the deal, keep in mind that you are not paying the full amount. It is also better if you pay nominal money as a check or pay the order, and seek to stop cash as far as possible.


Ink an agreement with an allotment or transfer letter


At the time of giving token money, it is easier to forge an agreement, and both sides will write down and sign all the terms. It is necessary to discuss commission, transfer and tax expenses with your seller so that you can prepare the amount accordingly.


Use Pay Orders for Paying

It is advisable to make the payments in the form of pay orders as there is no authorised record on cash payments. Try to avoid using cash to pay. To pay with pay orders always safer and stable. Ensure that all transition procedures are done before you give the pay order to the owner of the property. Don’t forget to Produce the copy of pay order, and have it signed to validate receipt from the plot holders.

https://abaadee.com/
 

pak-marine

ELITE MEMBER
May 3, 2009
11,402
-22
9,703
Country
Pakistan
Location
Pakistan
A detailed guide to buying a property in Pakistan without Fraud


Investments in real estate Pakistan can either be good or bad. You can make a fortune from a good property, while one can get stuck for years without a profit, or you can lose it. Most of that depends on your research, strategies, and often external variables, such as adverse policy or court rulings or delays in mega construction schemes.


Research is the key

Before you set your mind to buy any particular house in Real Estate Pakistan make sure that you do the proper research. Double-check the price of house that your real estate agent quotes to you. Another efficient and reliable way is to look for properties in online property portals such as Abaadee.com. They generate accurate results and gives you multiple choices to make your quest effortless.


Assess the market value of Property


The fair market value of a property determines what you would hope to earn if you sold it in private that day. This is important not only for sales but also to decide the stock and strength of your house.

  • Start looking on real estate portal information about recent sales or other immovable data for your area. Bear in mind that this information is not necessarily completely accurate and you can gather information from different sources.
  • Carry out a comparative business study on the property. A CMA can compare your house to equivalent properties and establish a comparative analysis of what your home may be worth, in comparison and identical, equal or identical properties.

Work with the Right Real Estate Pakistan Agent


This is the most essential aspect before you begin a property purchasing transaction. You can't believe whoever sits on the Real Estate Pakistan market. Start to pinpoint the established and licensed Real Estate Agents who had work for several years in the market. Try not to get enthralled by their lavish workplaces or skilled way of speaking.


Don’t forget to negotiate

It is important to ask your agent to schedule an appointment with the seller. It is safer to step away from the deal if you suspect your partner is trying to postpone the meeting. If the owner is already out of the country, you can ask your agent to allow you to talk with him before finalizing the contract.


Token money is essential to seal the deal


To finalize a deal, you have to pay 5 per cent to 10 per cent token money. At the time of the deal, keep in mind that you are not paying the full amount. It is also better if you pay nominal money as a check or pay the order, and seek to stop cash as far as possible.


Ink an agreement with an allotment or transfer letter


At the time of giving token money, it is easier to forge an agreement, and both sides will write down and sign all the terms. It is necessary to discuss commission, transfer and tax expenses with your seller so that you can prepare the amount accordingly.


Use Pay Orders for Paying

It is advisable to make the payments in the form of pay orders as there is no authorised record on cash payments. Try to avoid using cash to pay. To pay with pay orders always safer and stable. Ensure that all transition procedures are done before you give the pay order to the owner of the property. Don’t forget to Produce the copy of pay order, and have it signed to validate receipt from the plot holders.

https://abaadee.com/

all checks and due diligence stand no chance when state institutions above the law are involved in mega housing corruption scams , just recent example is what PAF did they are involved in 6 arab scam its called fazaia housing scheme Karachi just google you will find hundreds of news articles .. Bahria is another scam + many many others this country needs to sort itself out .
 

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