Guidance for Investment in Pre-launch Project
Usually, you used to search property by reading advertisements in newspapers and real estate websites. Several weeks pass by before you identify a property. It’s a difficult task for home buyers to search the best suitable property in the period of time. When you are going to approach to builder it’s so common to find that its increases its prices.
However there are some options for buying home in your budget. Pre-launch is one of the options for the good investment. But investing at the Pre-launch project is more risky. Let’s check, Pre-launch is really beneficial for the good Investment or not?
What is Pre- Launching of the Project?
Developers need initial capital to launch their project, lay the foundation and start the construction. Hence the only way to generate interest free capital is from pre-launch of project. A pre-launch property can be bought if one is ready for two to three years to get possession as it takes that much time to shape up.
A pre-launch (or ‘soft’ launch) is a situation where a developer apprises an inner circle of brokers and investors of the availability of properties for sale in a project that has not been officially put on the market yet. It can be marketed by word of mouth and via email, but does not figure on the developer’s website or in other marketing media.
The kind of buyers who show interest for pre-launch projects are usually resourceful investors and end-users who seek to benefit from the price advantage and can wait for a couple of years before getting possession of their flats.
Major Advantages of Investing in Pre-launch Project:
The fluctuation in the property prices is quite common in real estate sector. Therefore if you feel that are chances of appreciation in property rates then it is advisable to invest in pre-launch property. Investing in pre launched projects in cheap and the price advantage can go up to 20%. Some builders also offer attractive discounts on pre-launch projects to draw the buyers.
Investing in a pre-launched residential property in prime locations is an intelligent choice. As the house comes with discount and promises high appreciation and return values, Pre-launch is the best option. You can choose the best location as possible for the future returns.
Pre-launch of the project is gives you the benefits in prices and will comes in profit in future returns. It gives you the best return on investments as you can buy in lower rate of property compared to other options.
Important things you should take in mind while investing in Pre-launch Project:
Reputation of Builder:
One of the most important factors you should consider is the ‘track record and reputation’ of the Builder/developer. Home buyer must check the credentials, track record and reputation of the builder. The chance of risk is less if the builder is prominent and well established.
Clearance of Documents:
There are some important documents or paper work you need to check. An agreement between builder and the original owner of the land is not sufficient. You need to establish whether the builder has free and clear ownership of the land on which the project is being built. The project also needs to have an Intimation of Disapproval (IoD). The project also needs to have a commencement certificate in place.
Before investing into the Pre-launch project you should check the possession time of the project. Sometimes it happens that the builder gives the possession date but does give the possession on given promise date. So it is advisable to you that go through the builders previous projects and study the promises given have been mate or not.
It comes only if you want to buy a property with home loan. Often home buyers invest in multiple properties and raise a loan to seek tax benefits. In such cases, you should ensure that the project is in the process of being approved by leading banks or housing finance companies.
Category : Flatons Advisors Blog