What is Pre-Lunched Property?
A developer informs the real estate brokers and investors about the property that is yet to be launched. This commutation takes place via email and verbally. The targeted prospects and the brokers get attracted to this kind of property as it cost cheaper in comparison to the already launched projects. The information of a pre-launched property is circulated in the property market before the official launching of that particular project and thus it stays hidden from the public glare.
Pros of Buying Pre-Launch Property
- Budget-Friendly Buying option
Any property that comes with a pre-launch offer is 20-30 percent cheaper than the already launched projects. This is a positive point for the homebuyers as they can buy a bigger home in their prefixed budget.
Here, the developer is also at an advantage as he/she can raise the interest-free capital amount from the market.
- Invest for Future
This kind of projects is suitable for the homebuyers who are not in a hurry to buy a ready to move in apartment. Also, those planning to make an investment can opt for a pre-launch property as the construction of such unit takes time and thus allow a person to save more to pay a greater amount of EMI.
Cons of Buying Pre-Launch Property
- The major drawback of buying a pre-launch property is that the project is not ready on the ground. There is also a possibility that the developer is yet to avail all the sanctions and approval from the civic agencies and from the Government departments.
- Another drawback about buying a pre-launch property is the chance of delay in possession. Other than the regular approval from the regular agencies the developer also seeks sanctions from city development authority, Airports Authority of India, the National Monuments Authority and the Defence ministry.
- The third big challenge is home loan sanction as the financial lenders especially the banks are not very keen to offer a home loan on the pre-launch property purchase.
- Lastly, the main reason to consider buying a pre-launch property is that the developer has all the rights to cancel the project in case of insufficient funds.
Things homebuyers must consider while buying a pre-launch property:
- Firstly, the homebuyer should check if the developer has all the necessary documents related to the project such as the Commencement Certificate (CC) and Intimation of Disapproval (IOD). The Intimation of Disapproval is a guideline that a developer is required to construct the project in a lawful manner.
- Secondly, the developer’s reputation must be checked in case of buying a property in the pre-launch offer. It is very important to check the credibility of the developer and thus check the past projects promised date of delivery and the actual date of possession. Also, do check if there is any legal dispute the developer is facing and also check for the experience he has in the industry.
- Thirdly, check for the market reputation of the developer. This can be done by having a word with the number of real estate agents and brokers as they have a clear understanding of all the developers.
Keep all the above-mentioned points in mind while taking a decision to buy a property in the pre-launch offer.