New launch Projects are excellent Investment Options- Here’s Why
Real estate investment is an ocean. Investors are offered different investment options right from a new launch property, to flip and sell properties. Each of these investments come with their own benefits that serve the objectives of the investors. One common thing that remains common across these investment options is real estate is one of the most stable and beneficial investments in the long run.
New launch properties or pre-launch properties are the properties that are up for sale before the completion of construction. Many real estate projects are put up for sale before the construction and even get sold out. Sometimes properties are semi constructed and sometimes builders show a blueprint of the upcoming project. New launch projects are also loved by the investors that they are sold out even before getting proper construction approvals. In such cases the payment of the amount for the property is made in installments as and when a milestone set by the builders is reached. This way the buyers get assurance about their property construction progress and also the legal aspects of it.
These new launch projects are purchased by the end users and also for investment purposes considering the benefits that they offer the stakeholders. Let’s have a look at the benefits that new launch properties offer to the investors.
New launch properties are usually offered at a price which is below the present market price. This is done to attract investors as the property is still under construction. The money raised by selling the property is used by the builders to complete the construction. This way the builders are benefitted through interest free capital for construction and the investors get to enjoy property below market price. Early bird offers are a great way to save money on property investment for people on budget. They get a chance to purchase a property which would otherwise be over their budget. Investors can save upto 30% on the new launch property when compared to ready-to-move in properties or on properties that are in construction phase. Investors can thoroughly perform due-diligence of the property and builder to make informed choices about the new launch property investments.
First come first serve policy is followed by the builders. This means when you are investing in the property during the pre-launch phase the choices are more. Investors can pick the property of their choice and avoid disappointment which usually is common when purchasing a ready to move in property. Investors can have more options like which floor they would want their unit in, the view of the unit, the unit close to the elevator, etc based on their needs. Even though amenities and quality of the property remain same for all, minute experiences like good view, etc add up to the living experience in the property. New launch investors can enjoy this freedom and choose their unit based on their preferences.
As the property is still in the construction phase the scope for getting it customized is high and also easy comparatively. Yes, customizations can be made to already constructed properties also, but it is usually complicated. It is easier to make an addition to an under construction property, than to break an existing something, and to get it customized in a constructed property. It. In this case the investors will not have to waste money on something that they wouldn’t want, and get everything customized according to their preference. Money, and efforts both can be saved by the investors by investing in a new launch property.
The feeling of enjoying a brand new house can’t be replaced. When a buyer purchases a property which is already occupied, it comes with its own issues and importantly lacks the first mover experience. Many times investors have to get it repaired, painted, renovated and customized according to their needs, this brings in additional costs. All this can be avoided by the investors when choosing a new launch property and they also get to enjoy the newness of the property. Living experiences are more valuable and can enlift the quality of life.
A few quick pointers when investing in a new launch project will be to check the credibility of the builder. Best option is to choose a reputed builder in the first place. Due-diligence regarding legal aspects of the property especially the government approvals etc have to be checked by the investors. This will allow them to mitigate default risks on their investments. It is advised investors to not rely on builders words, or any third party information and do their own due-diligence to be sure with their investment.
From an investment perspective also new launch properties are a great steal. Firstly the investors have a benefit of buying it below market price, which is an excellent way to save on the initial capital.Investors can also invest in a good location, a better property with more amenities, or use the same registration expenses etc with the amount saved from initial investment.
Apart from this, the value of the property rises over the time of construction process. By the time the property is handed over, the capital appreciation would be typically more than a regularly ready to move in property, as the investor has already bought it below market price. This way the dual advantage of saving and high capital appreciation can both be enjoyed by the investors. Considering all the benefits the new launch projects offer the investors, it is safe to say it is an excellent investment option.