Is the Pre Launch Projects Best in the Locality

Have you ever considered investing in a prelaunch project? Do you have any idea that you can invest in a pre-launch project? Did you also come across ads by saying that "Attractive pre-launch benefits" or "Exclusive pre-launch offer"?

So, what is meant by pre-launch in real estate? What are the advantages associated with investing in a prelaunch project, or what are the pros, cons, risks, benefits, and disadvantages of investing in pre-launch projects?

Continue to read this article to have more clarity on these aspects. It will make you make better-informed decisions about investing in a pre-launch project.

What is Meant by Pre Launch in Real Estate?

Sometimes, builders are having a real estate plan, yet they don't have any approvals from the regulatory authorities. At this stage, they announce the project, and some buyers or investors might be desired of investing in what is known as a "pre-launch project". It is only a proposal against a plot. Basically, the sales process in a pre-launch project is started early on even when the builder is awaiting the required approvals for the project.

The builder already possesses some funds in this hand when buyers start the booking of the property and pay the booking amounts for starting the construction of the project as soon as they get approvals. In this way, builders will not be required to depend heavily on market loans, or to delay the launch of the actual project because of the unavailability of funds.

What are the Advantages of Investing in a Pre-Launch Residential Apartment Project

Now, we all are well aware that what is a pre-launch in the field of real estate. So, now let us make you understand why a buyer must invest in a pre-launch residential project. What are those pre-launch benefits that you can get? What are the advantages of investing in a pre-launch residential project?

Pre Launch Residential Project is Offered at Decreased Prices

Well, there is one major benefit of investing in a pre-launch property that is the rates of pre-launch are general and reasonably and attractively less contrary to the post-launch rates. When we put things in perspective, these rates might be 10% to 40% lower in comparison to post-launch rates.

When builders are capable of raising interest-free capital by means of pre-launch booking amounts, then they are also capable of offering pre-launch benefits and attractive discounts to pre-launch investors.

Heavy Gain on it Later On

When you invest in a pre-launch real estate project, then you can get the property at decreased rates, which is also enough profit. But, the story will not end here. You can also get further gains on it. If you are desired, then you can sell it off at the current market rate after the completion of the project and can keep the gaining amount in your pocket.

Choose Your Preferred Residential Apartment Unit

The early bird always gets the opportunity to catch the worm. The early buyers are capable of choosing the better residential apartment unit in the project. You will also have more alternatives to choose from based on Vastu and other preferences if you opt for booking a unit in the pre-launch stage.

Quick Launch & Project Completion

Apart from getting the property at discounted rates, and having the privilege of gaining profits out of it, there is still another attractive benefit of investing in pre-launch projects.

Since these residential apartment units are sold in the pre-launch phase, and the capital is available due to the pre-launch booking amounts that are paid by investors, the project is expected to be launched quickly once the builders get the approval, and it will also get completed quickly.

Customization Features

If you opt for booking a pre-launch residential project, then there are higher chances that you would be capable of customizing your house in the way you want it. When you purchase a property at an initial stage of the project, you will be capable of doing minor customized changes.

The reason behind this is that the project will still be under construction. Apart from this, you will also have the opportunity of choosing the unit of your own choice with the best view, easy accessibility, favorable location, and preferred floor all of which will be within your budget.

Smart Investment

Undoubtedly, the location plays a very crucial role when you are going to invest in real estate, and opting for a burgeoning area that is committed to instant appreciation is your best bet. The rate of urbanization is extremely high in suburban areas that attract a massive array of investors such as a moth to a flame.

Taking this thing into consideration, it is a good idea of investing in a pre-launch property that is established on the outskirts of the city. It is because the neighborhood can also further develop as the property gets developed.

Pay with Ease

If you opt for a loan, it is the easiest way of funding your real estate dreams particularly due to the massive range of tax benefits you can avail of on home loans. Real estate developers have introduced innovative schemes in order to take off the burden of EMI from the shoulders of the investors. No EMI till possession is one such kind of scheme.

According to this scheme, the buyers of the property will be required to pay only 20% of the initial property cost to the builder. After that, the builder will pay the interest against the loan amount till the transfer of the property to the name of the buyer. In this way, you will be able to enjoy an interest-free loan amount until the construction of the property gets completed.

Apart from this, it provokes the real estate developer to complete the construction of the property on time which will create a win-win for both the developers and the buyers. It is also an extremely convenient scheme for buyers who are not able of affording to pay rent and EMI together.

What are the Disadvantages or Risks of Investing in Pre Launch Projects

Extremely reduced cost, quicker completion of the project, and handover sound really good. But, such kind of huge benefits will certainly be associated with a certain amount of risk. When a project is in its pre-launch period, the builders are not having the approvals from the necessary authorities. This in turn will pose a certain amount of risk to the investors.

The Plan may get Modified

The plan that was shown to you during the pre-launch booking period, might not necessarily remain the same during the process of approval. It might get modified if there is any requirement. So, it is not necessary that you will get just the same for what you have paid. Of course, the modifications might be substantial and negligible, as the case may be.

Project Completion Might Get Delay

The process of approval for projects might take an indefinite amount of time. The reason is that there is a need for plenty of approvals from a plethora of authorities.

Risk of Cancellation of Project

If the builders are not capable of getting the approval, the project might also get canceled. It may also happen if the builders are not capable of raising sufficient funds for the project.

Disapproval of Bank Loans for Project

It might also happen that the project has not gotten approval from financial institutions for home loans. If this situation occurs, then it will lead you to the inconvenience of not having the assistance of taking a home loan.

Apart from this, the project might also get canceled as it would be hard to find buyers if they are not capable of availing of bank loans for purchasing the property.

Who Should Opt for Investing in Pre-Launch Project

As we all are aware that there are both advantages and disadvantages of investing in a pre-launch property, and everyone would not be capable of investing to avail of the benefits associated with investing in a pre-launch residential apartment project.

It is dependent on your risk appetite. You are recommended to play safely in the situation when you are not sure about your financial security and you are also not in a position of taking risks.

It would be much more appropriate to invest in a pre-launch project if you are looking for purchasing a second home, with the security of already possessing the first home. You can also look for investing in a pre-launch property if you are having some extra funds and you are also desired of playing a bit in the real estate market.

Precautions While Investing in a Pre-Launch Property

● There are both pros and cons of investing in pre-launch projects, so it becomes extremely necessary to take into consideration some precautions.

● Properly checking the trustworthiness and credibility of the builder. Duly check their experience and track record for understanding whether you can trust them.

● Analyze the viability of the location and other prospects that you would properly take care of checking when you purchase any property.

● Examine if all the pre-launch documents are in place comprising the title deed for the plot. ● Ensure to obtain a copy of the Commencement Certificate (CC).

● Ensure to obtain a copy of Intimation of Disapproval (IOD) which is a document that comprises instructions that real estate developers must follow for the construction of the building in a legal manner.

Conclusion

It doesn't matter what property you decide to invest whether pre-launch or pre-built, there are always risks and opportunities associated with it. If you opt for purchasing a property during the pre-launch period, it will certainly serve you with a cost advantage.

It is also a spectacular investment opportunity. The scope for growth capital-wise is better contrary to a real estate property that is already built or a property that is already being possessed by another family.

If you opt for purchasing a property during the pre-launch period, it will serve you with more options in terms of features and customization. The real estate developer is also more accommodating. There is also a wide scope for bargaining in the pre-launch period.

Here, you will also be served with an alternative in terms of the location of the property or the floor that you are desired for purchasing. All in all, on the condition that you can also have trust in the real estate developer, it would be a good composition to purchase a property during its pre=launch period.
Brigade Group Launching pre launch Apartment Brigade Valencia

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