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Tips for developers to gain confidence of investors

Tips for developers to gain confidence of investors

Real estate is one of the most profitable businesses. Due to the rising population, demand for new commercial and residential units is always high. But not every real estate developer earns lot of money. This is due to bad reputation of developer among the buyers and investors. Here are the tips for developers to gain confidence of investors.

Get NOC for the project

The most important thing to get the confidence of investors is to only launch new real estate projects if you have valid NOC. People have invested in many new projects, but lost their money as the projects had no NOC. Due to these frauds, buyers and investors are very cautious about new projects and only invest in ones which have NOC.

Complete the project on time

It’s easy to launch a new project but hard to complete it on the time. Many people who have invested in real estate projects have paid their dues, but the developers have not completed the projects. In the end due to these frauds, people have lost money. So in order to get the confidence of investors, it’s important to complete the projects on time.

There should be no hidden charges

Sometime investors trick the buyers with easy payment plans. The project looks affordable and very attractive for investment. But after some time, buyers find that there are hidden charges too and realize that they cannot pay the installments and sell it at loss. This is very bad practice and developers should declare all charges on the launch time.

Provide the facilities as promised

To make a project attractive, investors do claim extra facilities like zoo, hospital, school or solar power system. But in reality these facilities are not provided in the project which has very negative impression. Therefore, it’s important to only mention those facilities at the launch time which you will provide.

Provide the management as promised

Large housing developments always have the management teams to look after the societies. Good developers always make it clear that with the minimum charges, society will be properly maintained. But some developers lose confidence as after the completion of society, no effective management is provided.

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(2) Comments

  1. Nazish Fatima

    on   said 

    Dear ,
    i would like draw your attention recently in karachi the supreme court have order to demolish the ill-legal constrruction of homes like china cutting.Court have order to director KDA to clean up the playing ground and government land.

    similarly we have seen that their is a plenty homes have been constructed and sale as a PORTION. now their is many rumers that their is no legal value of portions. however it has been seen that people are still buying and selling portions. it has also been seen that portions are still being constructed and sub lease document are being making by old dated for giving under table payment as per demand.

    kindly give your technical analysis and advise to your readers about it.

    Reply
    • Nazish Fatima
      Many thanks for sharing the latest updates and reporting from street level. Ironically as per SC Pakistan is facing the issue of bad governance. I have pointed out many times that Supreme Court is taking actions against black money and illegal developments. For example NAB has started to investigate 100’s of illegal housing schemes and property frauds.
      Many housing/residential/commercial developments in PAKISTAN have no NOC’s. Many developments are built on illegal lands. Just strong mafia has secured lot of properties & land. They have artificially increased the scarcity of properties. When properties are less and buyers are more, property prices will rise.
      But as FBR is collecting the details of all investments in reality sector from 2014-17. The aim is to know the source of income of these investments which will discourage the inflow of illegal money into reality sector.
      HIGH PROPERTY PRICES IN PAKISTAN were just due to illegal money. Without illegal money property prices are crashing nationwide. In future only honest tax payers will be rewarded whereas people with illegal money will be punished.
      ISSUE OF SELLING OUT PORTIONS WITHOUT PROPER DOCUMENTS
      SC, NAB, FBR are already investigation the issues. So don’t worry. We will see new laws in near future that will serve the honest tax payers. Always stay away from properties without proper documents.

      Reply

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