Buying a property is one of the most exciting, challenging, and demanding things in life. Because it either demands or is the result of years of financial commitment and discipline. And the fact is that newly launched properties seem far more tempting and lucrative financially because of the following benefits it offers:
Early Bird Benefit: Best Pricing For Pre-Launch Investors
The project has just been announced by the builder, and during this pre-construction phase, usually, the builder offers attractive early bird benefits and discounts to motivate the buyers to take a quick decision. You end up getting a good deal in the price as compared to the prices of other similar under-construction or a ready possession projects in the vicinity. In fact, the prices are usually 15-20% lower, which ultimately translates into huge savings for new homebuyers. This pricing is available once the construction starts, as it is exclusively reserved for the pre-launch phase. With the enactment of the RERA law, the safety of the project is also no longer a worry.
You Can Avoid Price Hike
The second biggest advantage of buying a pre-launch property is that you can lock the price. Once construction starts and the property is available in the market, more and more people evince interest in the project. This higher demand influences the builder to raise the prices. The nearer the project is to its completion the higher the price would be. The launch of other projects in the locality, infrastructure development, connectivity, and general inflation like rising raw materials, labour costs, revised regulations, or taxes also contribute to the upward price revisions over a period of time.
Builders also charge higher prices in the latter stages of a project to make up for the early discounts. So you can reap substantial cost benefits by locking in the early bird price offered during the new launch phase itself.
Best Choice & Customization of Features
When you are amongst the initial buyers in a pre-launch project, you can choose the apartment unit that suits your fancy, budget & requirements.
You can decide whether you want the 4th floor or the 22nd; the flat facing the garden or the one with a city view; a plain 2-BHK or the grand Jodi flat. You are literally spoilt for choice when you come early, and the price discount is just the perfect icing on the cake.
Another benefit is the option to design & customize the housing unit as per your specific needs and taste. The flooring, woodwork, kitchen area, and sanitary fittings can be built exactly according to the family’s preferences. Some builders also provide the services of an interior designer to help the buyers spruce up their dream homes in tune with their aesthetic sense.
Lower Price & Easy Payment Option
It’s not just the tax benefits and the interest rate subsidies that every home-buyer gets. Normally the best deals are reserved by the builders for their initial customers of a project. If one books a house during the new-launch phase, then one avails yourself of some special launch schemes like the No EMI scheme till possession or special interest rates on home loans that significantly reduces the financial burden. Other benefits such as Free gold coin, two-wheelers, free parking space, or a paid family holiday are also offered by the developers for their early buyers. Generally, a nominal amount is charged for booking an apartment during the pre-launch phase.
Lets You Earn the Best Return on Investment (ROI)
For an early investor, it turns out to be a smart investment as the price advantage lets him reap the maximum potential gains on his capital investment. This is because the various benefits & price discounts that the buyer obtained while buying the property pre-launch reduce the effective acquisition cost of a property.
It’s simple to create wealth from a pre-launch property. You choose the right property in the right location from a good builder at the right price. Hold it for a few years or till the project is completed and earn good returns on it. Therefore, the key to smart investment is to invest in a property at the right price point, that is the pre-launch stage.
Important Points To Keep in Mind
- Always choose to deal with reputed builders with strong financial strength, and have an established track record of delivering projects on time without compromising on quality.
- Location is the most important criterion in a real estate investment. Always choose a property in an area that has high development potential, good infrastructure in place, and excellent connectivity and transport facilities.
- Never compromise on property documents or taxes. Ensure that all the required documents are scrutinized by a legal professional who specializes in real estate law. Check for the project’s RERA registration status and approval from the local authority.
- Select the right property within your budget.
Conclusion
Real estate is one of the best asset classes for long-term investment. Apart from the price appreciation, there are several other benefits, such as saving on rent, tax rebates, and security for the future to your family.
So remember the right time to buy a property is the pre-launch or just launched stage.
