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Pre-launch or New launch? The right time to invest in Real Estate

Real estate is a great financial opportunity in general. It can provide continual passive income and, if the value rises over time, it can be a wise long-term investment. One may even incorporate it into your entire wealth-building strategy.

The terms “pre-launch” and “new launch” are two real estate terms that appeal to potential home purchasers. Investors, in addition to end-users, are interested in new launch projects. The sole reason for this is that purchasing a property at the pre-launch or new launch stage will ensure it is available at the opening price, far lower than when the project is semi-completed or ready to occupy.

What Is Pre Launch in Real Estate, and what are its advantages?

Builders may have a plan set up, but regulatory approvals have yet to be obtained. At this point, they announce the initiative, and some buyers may be willing to invest in a “pre-launch project.” It’s only a counter-proposal to a plot.

In a pre-launch project, the sales process begins as soon as the builder has all the necessary approvals. When buyers start booking and paying the deposit, the builder already has some funds in hand to begin construction as soon as the approvals are received. As a result, the builder may not need to rely on market loans as much.

Pre-launch projects are pretty appealing to homebuyers, particularly those who do not have enough money to put down even for a down payment. It is the most desired alternative when purchasing new homes because it is generally associated with cost savings in the first total cost of ownership. This is especially true for first-time homeowners, who are likely to be enticed by the builder’s pre-launch offers.

This entire process is fascinating, even though it is extremely risky. During the pre-launch stage, the pricing of residential developments will be cut by 30–40 percent. This is a significant sum in the real estate market, which is why many purchasers choose for pre-launch. These pre-launch projects will be available for sale at a far lower price than the ready-to-occupy projects. The primary advantage of pre-launches is the lower pricing.

However, there are a few things to consider before investing in a pre-launch project. It is necessary to ensure that the developer or builder chosen has a good reputation in the market. Before committing to a project, it is essential to investigate the developer’s reputation. What were the issues that prevented the builders from completing their previous projects on time?

Also, after the pre-lunch session, make sure that none of the preceding projects has experienced any significant design changes. It is risky to opt out in other ways because there is no legal or administrative validity. Selecting developers with a clean track record throughout time can assist in avoiding any unwelcome surprises during the ownership process. Also, one must ensure that the customers will receive the specific project they first signed up with, with no significant alterations.

How is New Launch different from Pre-launch?

A new launch is far more secure than a pre-launch. The main distinction is that there isn’t even a start date for legal and administrative approvals in pre-launch. 

However, the approvals are in order with a new launch, even if the project isn’t yet complete. This is a guarantee for the money that has been put into the residential project. While the approvals are being processed, the project will be put up for sale.

These Pre-launches and New launches are used to entice homebuyers to a project while still planning stages. Although the process is not entirely risk-free, it can result in significant reductions and savings when purchasing a new house if done with caution and research.

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Himanwita Mazumdar
Himanwita Mazumdar
Assistant Editor at Business Review Live. Currently pursuing Masters in Media and Communication Studies (MSc) from Savitribai Phule Pune University, India, with a Bachelors degree in English Literature. She specializes in Feature writing.