Why Buying Property During its New Launch Phase is Beneficial
25 May 2023
The ‘pre-launch’ or ‘new launch’ phase of a project is the phase when the developer announces their residential project but is yet to receive administrative, legal, and other requisite permissions from the Kerala real estate authorities. The developer may not yet have started the process of obtaining the approvals. This may translate into a series of perks and benefits for the buyer. New launch projects can be a blessing for those who have a tight budget but want the benefits of a contemporary residence in a particular locality. What are these?
Let us understand by taking out a few pages from our home-buying guide:
At this stage of the project, the developer wants to market the project so that getting approvals and loans for the project is easier. The prices are, hence, much lesser compared to ready-to-move-in homes available in the market. Another reason is that following the RERA certification, any property in Kerala sees a sharp increase in its prices. If the property you are interested in is locked in during the new launch phase, you will be able to avert this price hike.
Customization and Other Benefits
The first-mover advantage can be highly rewarding for the new home buyer. They get to choose the floor, preferred flat with views, floor plan, stairs, etc of their choice while staying within the pre-launch price. Moreover, the interiors of the flat could be modified by making requests to the builder to suit any specific needs. These can be easily accommodated as the construction could be in the initial stages or might not have started. The money saved by booking the property during pre-launch can be used to plan luxurious interiors and other amenities in your new home.
We often see so many projects in their launch phases offering easy payment options to benefit the home buyer. There are offers where a small part of the total price is paid immediately, and the rest could be paid during possession. By taking a mortgage you can get a tax benefit and a substantial breather period before the EMI payments start. The builder will also be motivated to finish the project as soon as possible to reduce the cost of the project.
By committing to buy the house during the launch phase you can get a significant financial advantage. Do you want to know how? As soon as the project is complete and ready to move in the property prices are hiked. The hike is anywhere between 10 % to 40 %. Your property is now worth much more than the new launch phase and this was possible in a comparatively shorter span. This adds to your asset value increasing the overall worth of your property.
A new launch project can be a very beneficial option for first-time home buyers as they gain many perks and advantages. It is prudent to choose reputed builders and developers so that you are in safe hands.