Planning to buy an apartment? Confused? Skeptical about that first step?
We won’t be surprised if you answer all the above questions in affirmation. Buying an apartment is unlike buying a fancy gadget, something we are all masters of, thanks to the social media age. But here’s a tip that will help you go a long way when investing in a property- If you are planning to buy an apartment in an under-construction project, investing at an early stage of the project can get you reasonably lower rates but then it comes with risks attached.
There are two stages in which a project is launched:
The soft launch stage: This is the first phase of the launch when the developer opens the booking for brokers and select investors.
The launch stage: The second phase is the formal announcement of the project. This is when the booking opens for the general public.
Searching for a property is definitely one of the most time consuming and risky activities. You start with reading advertisements, then talk to real Estate developers, then read more advertisements, come to a conclusion and then change it again because of 3rd party interventions. In short several weeks pass by before you identify a property. And by the time you approach the builder, you notice increased prices.
So what should you do in such a situation?
They say the early bird catches the worm. Same is the real estate story. You can take advantage of the soft launch stage, when homes are offered at an inaugural discounted price as the developer is in the process of getting approvals. During this stage, the developer tries to sell a certain amount of units in the upcoming project through brokers and investors to raise early money for its projects. At this stage the developer is usually ready to reduce the prices further with higher upfront payment. The only concern with booking in the pre-launch stage is on the project getting delayed because of the delay in getting approvals but if you are an investor and going with a trustworthy brands, this is the best time to get into an under construction project. The logic is that more buyers in the initial stage mean more advances coming in, which in turn facilitates the builder to start the construction of theproject .
Just remember that builders first invite their existing customers in other projects and investors and brokers in the region. In order to become a part of the soft launch phase, you would need to express interest in the property beforehand for the developers to shortlist and invite you.
Stick to a trustworthy brand name, because then you can see their work portfolio of their other projects and have no worries. It’s not that we are suggesting you to invest in property at the early stage. But consider the option. Talk to a good property dealer in the area and ask him to keep you updated on new launches.