Plot or Plot File – Where Should You Invest?

The real estate sector of Pakistan has witnessed many new and modern developments in recent years. By making a little yet the smart research you will come to know the best and attractive properties for sale across the country. Every new and well-planned real estate project brings the best investment opportunities for both investors and end-users. So, if you are also planning to invest in the real estate of Pakistan, then you should be aware of the difference between different properties, especially between plot or plot file. To make all these things easy to understand, we are going to share the complete details and the key facts to clear the difference between these two.

Difference between Plot or Plot File

Let’s start to differentiate between a plot and a plot file here below:

What is a Plot?

The term plot means a piece of land both can be residential or commercial that a person or any legal entity can own. It is a property with the number, physically marked and also mapped out in a particular society or any real estate scheme that is recognized by the government authorities.

In simple words, it is a developed property that you can visit and see physically. While investing you will be aware of its actual location. And also, a plot comes with plot numbers.

What is a Plot File?

A plot file is a documented promise of a piece of land that has a certain area size in the planned or existing housing society. It has no physical existence and it is not certified by any development authorities. However, plot files are later converted into actual existing plots after they have gone through the phase of balloting.

In simple words, plot files are actually the initial stage of any property that a society or any housing project offers at the lowest prices. An investor can invest in a plot file of society and once the balloting is done, he will be then allotted with plot location and numbers shown on the map.

Where Should You Invest?

Buying property in Pakistan can be a huge investment. Maybe it will be your first real estate investment in your life. So, whenever you are choosing between a plot file and a plot, you should need to property judge both of these options. Mostly, the developed plots are not available in newer real estate projects but available in older societies. Anyone buying a plot can easily visit the site he intends to invest in.

However, this is not in the case of a plot file. Plot files are less expensive in comparison to the plots. Besides, plot files have less legality involved in the process of its ownership. Taking example of a New Lahore City, the plot file of a 5 Marla plot will cost you around 15 lacs. However, the same category of a residential plot will cost you around 27 lacs to 40 lacs.

This investment factor is also a key difference between a plot file and a plot. This factor might also impact your investment decision. However, it is important to mention here that there are two types of plot files: Affidavit and Balloted.

Affidavit Plot Files

When a property-owner surrenders his land/property file in favor of the project developers overseeing that particular neighborhood, then, in such circumstances, an affidavit file is issued. This file serves as an open letter for a property. Affidavit files can be easily transferred in the name of any particular person or entity buying it.

Balloting

It is a process of assigning plots in a particular project to the possible buyers. It is a draw carried between the applicants of plot files and plots in proposed property development. There are two types of balloting booking ballot and a plot ballot.

Booking ballot is such a type of balloting in which the applicants of booking properties on installment basis take part.  However, plot balloting is carried out between buyers who are willing to pay the full amount to own a property. After this balloting, a society issues a map and also the allotment letter to an owner.

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