Lately, there have been a lot of builders that have started selling units of their Project before it’s fully even constructed. Is that a good thing? Would it be profitable for a Buyer to invest in Pre-Launch Projects? Well, we here at OSS have summarised that and put it down in the simple plain words where people can understand if it would be profitable for them, considering all the factors from his or her view point. We shall discuss a few factors that will better help you understand why it would be a good or bad decision to invest in a Pre-Launch project.
But, what is a Pre-launch offer? Pre-launch is such a common term in real estate. You might have heard a lot about the various advantages of pre-launch from your friends, relatives, and realty experts. However, if you are wondering what exactly is a pre-launch, how it works, and how it benefits the builders as well as the buyers.! Pre-launch is ideally the time when a project’s approval processes are still in progress. At this phase, builders make an announcement about the project proposals and start the sale for the same. Buying a property in a pre-launch sale is beneficial to home buyers as it offers a good rebate on the overall costs. In other terms, when you invest in a pre-launch property, you will not see the actual property. You will see only the proposed layout and plan. In short, you will see the property you are buying grow from plot to a beautiful home.
These would be a few pointers from the Builders point of view that it wants to offer to its buyers
1.Pre-launch helps the builder to generate cash flow, whereas buyers can get a premium property at a minimised cost at this stage and also at under construction stage.
2.Such kinds of launches in the real estate sector prove advantageous to the buyers who look for price benefit over the years of possession.
3. Old customers, investors and real estate consultants can gain from this kind of offer as it reaches them the earliest.
4.Though it is said that this kind of investment is risky but if you can check the reputation of the builder and the needed approval documents then it will become much safer to invest.
5.Also the best of construction companies include a policy in the agreement that says, they would pay a compensation if they are not able to deliver the flat in time so that buyers need not suffer monetarily.
While these are not the only factors considered, we can say that these are a few key elements that can be considered while deciding whether or not to invest in a Pre-Launch project from the builders point of view. Now coming to the main talk of the hour.. who would benefit most out of investing in Pre-Launch projects? While anyone and everyone can purchase a property during pre-launch to enjoy the different benefits, it is investors and second home buyers who prefer to buy properties during pre-launch.
When you buy a property during pre-launch for investment purposes, it is quite beneficial. You get the property at a reduced price, and once the property is ready, you can sell them at the current market rate, which will definitely be higher than the value you brought the home for.
As pre-launch properties may take anywhere from 12-24 months to be delivered (and even more in some cases), it is advisable for people who have no immediate time constraint to invest in pre-launch properties.
In case you have decided to go ahead with the decision of investing in the pre-launch idea of property dealing it’s a mandatory fact to consider a few factors before jumping into making the decision..
A project pre-launch is accompanied by lower than market value provided with builders offering discounts even up to 20-25%. Buying an Apartment in Bangalore in pre-launch from a reputed builder who has a strong performance history of conclusion of items, Ensures that your financial investment is safe & safe-guarded.
While the benefits attached to the purchase of property in pre-launch is quite rewarding, as a home buyer or investor, you need to be cautious when buying a property in pre-launch. If you are looking to purchase a pre-launch property for investment and resale purposes, then you need to make sure that all the documents are in place. It is important to trust the right Channelling Partners and builders. A thorough background check of both would go a long way!
Another big pro to buying during a Pre-launch would be the value advantages, the choice to pick out your most popular unit is one more advantage. you’ll be able to build alternative supported factors just like the most popular orientation or proximity to bound project amenities. Once the pre-launch, all remaining units were opened to the market throughout the launch. Hence, your decisions become affected. By getting in pre-launch, you’re investing in an exceedingly property that’s still some of years aloof from relinquishing. there’s a differential quantity to be paid in several phases until the project relinquishes. The initial down-payment to book associate degree living accommodations or villa in pre-launch is simply nominal. This may give you ample time to prepare your finances. One when we talk about the ROI There is an enormous potential for appreciation of property costs if the purchased property lies in a locality that’s presently underdeveloped with a possibility for fast development. For investors searching for investments with giants coming back on investments, will give you multifold returns.
As an In investor this is a great opportunity to dip into the market and find out the benefits of the market of Real Estate. If the acquired property lies in an area that is presently underdeveloped with a capacity for fast development, there is a big capacity for gratitude of property rates. For financiers searching for financial investments with big ROI, can offer you multifold returns. A comprehensive research on the builders and developers behind the project can assist you make a smart option that reduces all threats. Developed and appreciated players in the real estate market normally take these threats into account and ensure the project goes through without missteps. Pre-booking of properties is the way to choose financiers who intend making multi fold gains from real estate financial investments.
Hope this helps you people better understand what are the reasons for investing in Pre-Launch property and a couple factors that are to be kept in mind to make an investment in this field. We here at OSS take all that into consideration and give help buyers find their dream at absolutely no charge at all! Go now and book an appointment with our Property Specialists.