Pre-launch projects are profitable for the end users and investors both. The kind of buyers who show interest for pre-launch projects are usually opportunistic 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. Not only this helped buyers but also builders. Here are few positives and negatives that a buyer may undergo if invest in pre-launch project.
Advantage of investing in pre-launch project
Pre-launch is the best time to invest in property because rates are cheaper and investors have the best opportunity to negotiate with builders. The price advantage of buying into a pre-launch project can be anything between 5-20%, depending on various market factors. To name a few residential projects where prices witnessed steep rise are Mahagun Moderne and Gaur City 1 at Noida Extension.
Risk of Investing in pre-launch project
In current scenario when there are many unsold inventories and many projects getting delayed and even shelved, the high risk factor must not be ignored. There might be problems in availing home loan approvals, or the developer may not have obtained all the required permission for the project.
Things to keep in mind while investing in Pre-launch project
With current condition, people should be careful to invest in pre-launch property. Choose only reputed builders with his past track record of good construction quality and timely possession and experience in industry. It is important to know the actual completion and handover timelines.