Every other day, you hear about the pre-launch offers of new apartment projects in Electronic City, Bangalore and you can’t help but wonder whether it is safe to invest in these gated community apartments in Electronic City, Bangalore. Firstly, what is a pre-launch property? Pre-Launch projects are those properties wherein the sales process typically starts the sales process before finalizing the approvals. Through this process, the builder will have enough funds in hand to start the construction without having to delay the project launch due to the unavailability of funds.
But, how does it benefit you?
- Reduced Prices
These projects are usually priced at 10-40% lower than the finished projects. When a developer can raise interest-free capital through pre-launch booking amounts, they can pass on the benefits to the investors.
- Profitable Returns
When you are investing in a pre-launch project, you get to buy the property at a reduced price and it is profit enough. But it doesn’t end there. You can further make a profit if you wish to sell the property off at the current market rate.
- Privilege of Choice
One of the major benefits that you get from investing in these new apartment projects in Electronic City is you get to choose your preferred unit.
- Plan Changes
The changes may be negligible or substantial but you may not get what you paid for.
- Project Delays
Often, approvals for these projects may take time resulting in inordinate delays.
- Risk of Cancellation
If the builder is unable to raise sufficient funds for the project or is unable to get the required approvals, the project may get cancelled.
- Bank Loans may not be approved
Under certain circumstances, the project may not be cleared for loans. If that happens, you may have a hard time of availing a home loan. Additionally, there is a chance of the project getting cancelled if they are not able to get buyers due to lack of a bank loan.
Measures to be taken before investing in a Pre-Launch Property
- Ensure that the builder if of a sound reputation. Check his past track record.
- Verify the documents of your gated community apartment in Electronic City, Bangalore including the title deed.
- Ensure that you get a copy of the commencement certificate.
- Get a copy of Intimation of Disapproval, a document that contains instructions that a developer must follow for constructing the project legally.
- Check for the potential of the location before you zero on the project.
To conclude investing in a pre-launch project is something that you need to make a decision based on your appetite for risk. If you are looking for a second home in one of the new apartment projects in Electronic City, Bangalore, a pre-launch project would be a good idea. Pre-launch projects may seem daunting but keep in mind that over the years, several illegally constructed buildings have been demolished after completion. So, it doesn’t matter at which stage the building construction is in but who is constructing it.