Making a Careful Pre-Launch Property Investment

With the realisation of the potential of investing in real estate, pre-launch projects have found a healthy market in the Indian scenario. While these are considerably cheaper than the market rates, they come with some potential risks which you, as an investor, must know of and be prepared for before zeroing in on a project that is yet not officially out in the market.

Possibility of delay – At the time of pre-launch, most projects lack approvals and clearances. Absence of a single window approval process for real estate in India makes it difficult for developers to commit any timeline for getting approvals. At times the process may be smooth, but it may also get stuck for various reasons. In such cases, pre-launch projects could face inordinate delays. You must be prepared for such circumstances and not depend on the property for immediate use.

Other consequences of lack of approvals – While this may not happen very often, but there could be worse consequences than delaying of such projects. In extreme cases, lack of approvals and inability to acquire these could result in the projects getting shelved or even scraped off at pre-launch stages. To safeguard yourself, you must go for reputed builders who can offer alternate options such as refund of investment or alternate property in another project.

Change in the delivered product – Since these projects are at a very early stage of planning, you may not receive exactly what you had booked. There could be alterations in the layout of the project, the floor plans or the specifications offered.

Unavailability of home loans – If you are considering purchasing a pre-launch property, you must not depend on home loans and must have enough funds to pay the booking amount. At pre-launch stages, many banks do not approve home loans. You must plan your finances well in time to consider investing in such a project.

Investing in pre-launch projects is not a wrong choice, but we must understand that only a careful investment could make a successful investment.

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