Sorry State Of Real Estate Sector
Real estate is one of the most profitable industries, The investor waits and watches after some time your investments doubled. There was a surge in housing schemes. Unfortunately, most of these societies were illegal and very few were legal who followed the government’s rules and instructions. Even the government has given lists of housing societies that don’t fulfill city development authorities’ criteria.
Due to uncertainty, most people invest their savings to buy plots and files instead of investing in other businesses. The file system is like a Ponzi scheme. Most people buy files of plots which were plots on paper but in reality, these societies don’t have lands to adjust all the files so they started to buy their files which they sell to the common man. Due to panic in the general public, they sell their files at cheap rates and that’s how this business model runs. If the file holder is ready to wait for possession to be delivered to him in the next few years societies ask him to pay different charges in the name of escalation charges, possession charges E.T.C.This is just business. The developer has a topical business mindset, he doesn’t care how his business model will damage the mental health of his client. He only cares about the money that he gets.
Another big dilemma for people who want to invest is the challenge of land mafias. Land mafias are spread everywhere in the center of the city where they give threats to buyers and purchasers and force them to make people follow their instructions. They are very strong. The common man cannot fight with these white elephants. These land grabbers have hidden support of officials too. Here in Pakistan real estate has passed its peak. When authorities noticed that people who had black money were into this business the government decided to tax the real state to discourage people. At the moment government has imposed different taxes including advance tax, capital gain tax, and deemed income tax. You have to justify that from where you earn this much amount to buy the property and you have to pay tax on the amount you earn and which you used to buy the property.
Due to a lack of Job opportunities, most youngsters are in this business. The worst part is these youngsters are only interested in making money. They are not concerned with clients, I observe they sell worth less plots at high rates. Most of the time they sell disputed properties when people start to construct they get court notices. Every corner of the city there is a property dealer you see. The easiest way to make a few bucks but the chances of fraud are high. Government needs to make this system more transparent and create job opportunities. I hope in the near future we will see improvement in the real estate sector.