While looking for a new home, you are often faced with the dilemma of whether to go in for a ready-to-move-in property or one at its pre-launch or launching phase. While the first option gives you a real-time look and feel, the second category hasn’t been built or completed yet. It could be under construction or perhaps still on the drawing board. However, most properties start marketing at this pre-launch stage itself, often for the developers to raise interest-free capital to lessen the load of bank borrowing. As a buyer, booking your new abode at this pre-launch stage can yield a plethora of pluses, even if you get to only see the mashed-up model, rendered images or AV walkthroughs.
So, what are the benefits of booking a property at the pre-launch/new-launch stage?
# Early-bird price benefits: Booking your property of choice early can be extremely rewarding financially, since developers usually offer significantly discounted prices at the launch stage. The idea at that stage is to achieve early sales momentum and create a buzz around the project in this fiercely competitive market. So carrying out the transaction at this stage means you save considerably upfront. This saved amount later comes in handy when you are doing up your interiors and fittings. So be the early bird that catches the worm.
# Skip the price spiral: It is quite commonplace for real estate agents and developers to jack up the prices of a property once it gains currency among prospective buyers or once the RERA certification is obtained. Sometimes concurrent infrastructure upgrade in the vicinity or any energizer development like a retail mall or entertainment centre or reputed schools and colleges and medical facilities, etc can provide the kind of traction real estate rate hikes feed on. At times though, just rise in input costs can lead to an upward revision of prices. Of course, market buoyancy can also trigger a price increase when it suddenly becomes a sellers’ market. Again, by booking and securing your property at the launch stage, you can totally wipe out this specter and insulate yourself from such future inflation.
# Make a profit on resale: If you are looking for a secure investment option in the form of a new property, the best stage for you to buy is the launching phase, since you get the best prices and can also get healthy returns when you opt to re-sell the apartment/bungalow at a future date. Irrespective of whether you are a seasoned investor or a first-time home-buyer, you can’t go wrong with a purchase at the new launch phase.
# Ease of payment: While you can avail of tax benefits when you take a home loan, many developers are now offering the option of no ‘EMI till possession’, which can come as a massive relief and you can get yourself organized with a structured plan of loan repayment for the months and years ahead. Also, in most cases, you are required to cough up just 20 to 25% of the property value at the time of booking, and since the developer is paying the interest on loan till your EMIs kick in, he is under pressure to complete and deliver the project on time. So that’s a safety valve against time overrun as well.
# Easy to customize: You can maximize your early-mover advantage by choosing the floor and flat of your choice with the best view, ventilation, location, accessibility, etc. Importantly, you can set up your home with the exact interior solutions and fittings that best serve your purpose. Such customization/alteration can be best carried out at the initial phase when you have booked early.
To sum up
While any investment in real estate, like in any other domain, carries an element of risk, you can minimize your hazards by doing a thorough due diligence on the track record and reliability of the developer. At Pioneer Property Management Ltd, we help you navigate the choppy waters of the real estate ocean by doing all the homework on your behalf and laying out a plethora of options before you to choose from, as per your budget and location preferences.
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