Buying a property during the pre-launch period refers to the properties that can’t be sold before the final approvals. Investors can purchase these properties way before the project is completed but can only sell upon the final approval. Thus it has specific underlying pros and cons attached. What are these? We have tried to explain it in brief in the discussion ahead. So take a look.
Benefits of Buying Property During Pre-Launch Period
Here are the benefits attached to buying property during the pre-launch period.
Reduced Price
The biggest benefit of buying property during the pre-launch period is that you can get the deal at the best price. The cost of property purchased during its pre-launched period is inherently down as nobody can sell it now. Its futuristic value is uncertain; hence its prices are low.
A Profitable Investment
Luckily, property demand will mount up if it is in proximity to schools, colleges, parks, hospitals, and wide roads. Its price will constantly soar. Similarly, it may prove to be a profitable investment for buyers that wish to sell the property once the pre-launch period ends.
Customization Available
Since pre-launch properties are under development or yet to be furnished, buyers can ask for customization. Their special requirement from the property can be fulfilled before it is completed. However, in most events, the facility isn’t available if more than one investor invests in a property. Consent from everyone will be required.
Risk of Buying Property During Pre-Launch Period
Here are the drawbacks of buying property during the pre-launch period.
Project Delays
In most events, project delays occur due to numerous factors. Hence, your investment can take time to give you desired amount of returns. The reason could be a natural disaster, shortage of funds, legal issues, or authorizations.
Plan Changes
Many times when you deal with a false agent, you get yourself dropped into hoax games. Developers or builders might have a deal signed with you on a different project before, but later the project plan changes. For example, you invested an amount on a project hoping to receive luxury apartments as promised you on the deal, but the promise isn’t reflected when the project is finished.
Risk of Cancellation
Sometimes projects can also be canceled due to numerous reasons. It can be because of government new policies or legal matters, property issues with third parties, etc. Hence, you are always advised to buy a property during the pre-launch period via a trusted party.
Conclusion
In a nutshell, properties bought during the pre-launch period may or may not be that profitable. It depends primarily on the agent you trust and invest through in a property. If the agent is trusted, they will undoubtedly help you discover the best profitable opportunity in real estate. But if you are dealing with faulty parties, you are more likely to invite troubles for yourself. Properties purchased during a pre-launch period can double your investment, but make sure the project can be canceled or delayed for numerous reasons, as discussed above.
