Pre- Launch Property , The Story of Pre- Launch Residential and Commercial Properties. What is It?
When we think pre-launch property one thing comes in mind, e.g., Profit or benefits by invest in initial stage of buying, there can be a different vertical in real estate investment, in pre- Launch Properties like Residential Apartments, Commercial Showrooms Project, Industry and Independent free hold Residential Plots Buying Concepts. The Word Pre-launch or internal launch of any real estate project have a purpose to announce this to collect fund form the buyer or investors in spite of any govt bank and financial identity, because it is hard to raise fund without any approvals and documentation. So further we will discuss both pros and cons about the running topic.
Why Pre- Launch:
First thing is that rise why pre-launch needed for the development or planning any work or infrastructure or it can be for any Economic activity or project. Basically, all this done for only raise the funds to execute any business activity or launch a Residential and commercial real estate project. There is lots of money transaction involved to necessary approvals and expenses for this builder needs to initial fund to proceed this starting process.
For Instance: A builder buys a area of land to sale residential plots there, first he have to change the CLU (change of land Use) for the particular vertical of real estate. And another certification and NOC. So, he will announce it unofficially with their brokers, Investors and existing clients he has and try to attract invest with him to take initial benefits. The builder has money ready to go when customers start booking and paying deposits so that once rights are issued, building can begin right away. By doing this, the developer may minimize the need to excessively rely on market credit or delay the launch of the actual project because of a lack of funding.
What type of benefit:
Now after the understand of basic, the next is why buyer or investors and end user will show their interest to purchase this property. At Initial stage developer offers an attractive rate in their circle or with their channels which gives to 20% 30% less from the market rate for the specific property. So that investor can get good return on their initial investment and builder get interest free fund form the investor and pass the benefit to them as a form of Initial Discount.
So, invest in pre-launch property hold for some time until the all-necessary approvals and the rate appreciation in the property then you can sell it in the open market at prevailing rate. One more benefit here you have plenty of time to make another payment, builder mostly take Near 25% as a starting amount, for rest payment he gave you time until the permission given by authorized body or departments. First come first serve you have to chance to select your desire inventory or numbers also as you buy in starting.
What should be Consider:
As there is some benefit to buy pre-launch property at the time of initial stage, there are some obstacles also and some point for lose. Sometime Developer unable to raise fund from the market, it can be the reason for delay and incompleteness the project. And some time the chances of refusal in many issues in approvals and documents. It can be also stop in the way of working. You can Block the money for long term without any profit. If potential purchasers cannot arrange bank loans to purchase the home, finding buyers will be impossible. Not everyone will be able to back and take advantage of the benefits of investing in pre-launch residential development because there are advantages and disadvantages to buying a prelaunch property. Your capacity for risk will determine this.
If you are unclear of your financial situation and are unable to take risks, it is best to play it safe. The credibility of the developer also should be considered that what he delivered before, the good will in the market and previous commitments. The location is the main key where you are going to invest study it properly. There can be some other factors like his partners, planning, blue print what type of product he is going to launch in the public, what will be the response if invested.
What we can think?
In all the story of pre-launch concept of real estate one person is in profit that who can take risk to buy, but we should not think about the rising price of residential and commercial property when they launch in the market. Who will buy this? Obviously end user, but can he get a justified price?
Sometime no. today’s trend of pre-launching project whether it is residential apartments project or a commercial investment the property rate is too high as compare to that should be I mean price are not justified some places. So, some time heavy load goes to on end user pocket. So, there should be a proper balanced price the time when the builder launches a project in the market for all.
Want To Buy:
Investing in Pre-Launch project is good if you have done proper study or consulted with your services Associate and with your property agent. If you are planning to buy your second home then you can go for pre-launch Residential Apartments and commercial space in spite of buy ready to move assets.
There is some most prime or developing location in north India e.g., Chandigarh, Mohali and Zirakpur. The Big Developer are moving here with good quality Project and with a genuine return on your investment. If you are planning to increase your asset the Estate to Estate one of the leading property Consultancy Firm in Zirakpur, Near Chandigarh working with repudiated builder and having good option for Investment.