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Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

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Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

Last updated: December 17 2013
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  • Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

    Guys, there are different stages of buying a flat/apartment at different stages. On high level they can be:

    1. Pre-Launch
    2. Launch
    3. Midway - Under Construction
    4. After Completion
    5. Resale

    Please share your thoughts so that buyers have the right perception of all pros and cons while booking and it can guide them to take right decision........
  • #2

    #2

    Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

    In my personal opinion:

    1. Pre-Launch
    Pros
    a. The price is lucrative/ very less some time atlease 300-500 Rs/Sq.Ft less that the launch offer.
    b. Lot of savings in future if the project has good market response during launch.
    c. More/best choice of choosing the flat like floors, views, best vaastu/feng-shui apartment

    Cons
    a. All the approvals would not have been obtained
    b. There is a risk of our money being stranded if further approval takes time
    c. We will not know the public reaction/ trend as the Advertisement is less
    d. Less scope for negotiation as the crowd is more
    e. Inportant documents like sale agreement will not have been prepared and not possible to verify
    f. Lot of uncertanities/possibility of delays afterwards
    g. More of "tempation/ impulse" decision
    h. Decision is purely made just by "popularity of builder" AND "savings/money"
    i. More waiting period - Lot of uncertanities/possibility of delays afterwards
    j. Possibility of change of UDS, floor plans during near future


    2. During Launch
    Pros
    a. The price is atleast 100-200 Rs/Sq.Ft less...and more ofers in place
    b. More/best choice of choosing the flat like floors, views, vaastu aspects
    c. More crowd during launch time so more possiblity of interation with people at the site. Market response can be known.
    d. All approvals in place. Less documentation risk.

    Cons
    a. Detailed study awareness of site/location will be less
    b. Lots of chances of band-wagon effect (choosing based on others choice)
    c. Marketing people will be pushy and change our mind
    d. Less scope for negotiation as the crowd is more
    e. Documents like sale agreement will not have been prepared
    f. Pre-EMI burden.
    g. More waiting period - Lot of uncertanities/possibility of delays afterwards
    h. Possibility of change of UDS, floor plans


    3. Under Construction - Mid way
    Pros
    a. We can see the build quality and possiblility of alterations down the line (applicable for above two phases as well)
    b. All documents can be verified and will come to know market attraction rate
    c. Documents like sale/construction agreement will be in place and can be verified

    Cons
    a. Price increase will start and will be relatively high
    b. Less choice of chosing your favorite apartment/ views
    c. Pre-EMI burden


    4. After Completion
    Pros
    a. All approvals can be clearly verified; lot of banks would have approved
    b. What you see is what you get
    c. More Clarity about project/ hence risk is less
    d. All important documents like sale agreemnt can be verified and will come to know market attraction rate
    e. NO Pre-EMI's in other words savings in Pre-EMI's
    f. No/less uncertanities/ No worries about delays

    Cons
    a. Price will be at its highest/peak
    b. The build quality and construction method could not be seen directly by us
    c. No possiblity of alterations
    d. Less choice of your favorite apartment/ views


    5. Resale
    a. Almost similar to "Completed Project" but pricing can be attractive
    b. Risk of knowing if the previous owner paid tax/ association dues
    c. Documentation/ paper-work/ verification need to be carefully considered
    d. NO Pre-EMI burden
    e. Other factors depend on age of property
    f. Reason/motive for resale also need to be carefully examined. (Example: New ASI rule/ Archeology Society Of India might bring few areasas monumental so there will be selling spree...)

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    • #3

      #3

      Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

      4. After Completion would be the best option..

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      • #4

        #4

        Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

        IMO ,Almost 95% of the Builders do not live up to their initial promises so it's better to buy a Ready to move in flat though the choice may be limited at least you know hat you are paying for .On the other hand if you were to book a flat during initial stages there is always an amount of uncertainty hanging over which leads to stress thereby affecting your health and daily life.

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        • #5

          #5

          Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

          It is going to be ready to move in henceforth for all resident Indian buyers. More and more people do this, it really becomes REAL estate....so the higher price level factor will definitely come down over a period of time since more the builder delays, lesser it becomes valuable after a point since building depreciates heavily. So builder needs to maintain the facility properly to perceive value by the potential buyers. This becomes win-win for all buyers.

          These sea views and vastus will never match ones requirement 100% in a GC....

          So GO ONLY for finished units and bargain HAAARD!!!!
          Last edited November 8 2013, 10:37 PM.

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          • #6

            #6

            Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

            Please also keep adding any additional pros and cons which you feel or based on your personal experience as well........

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            • #7

              #7

              Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

              I went for a resale for the above reasons and would like to add a few more pros :
              1. You would know the rental value and also if the association is ok/against renting to bachelors etc.
              2. You can also look at the way the property/GC is being maintained and the cost
              3. Car parking is more or less included in the price and you can check if it is a convenient one (pillars in the way, neighbours encroaching/parking in the way etc)
              4. Loan approvals (the legal side) can be easier, especially if the bank had approved new/resale properties for the project earlier

              Cons :
              1. Sometimes sellers can get difficult as the registration approaches if they are selling the property as the last resort
              2. Registration costs, the full 8%, can make you feel as if you are paying a lot more. But with the government tightening/closing up loopholes, this is not much of a con actually

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              • #8

                #8

                Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

                I do not like pre-launches. Too many unknowns and not enought discount.
                No point taking huge risk to save 500rs psft or some pathetic discount. Reward should be there for Risk.

                Hardcore investors usually get in just after the launch for a regular project at a good discount or during launch for a hot project.
                Then they sell it off as the construction nears completion, before the registration period. You get the better deal when builder needs the money the most.

                Only very few launches are made at good price, decent staggered payment plan with less down. Most projects are launched at exhorbitant prices and then they come down when they see no takers. So no point in jumping in unless you believe the project/area is going to take off.

                Rental market is so beaten down, no point in focusing for rents. Capital appreciation should be number 1 goal, rents are just addional return during the hold period.

                Not everyone can afford RTM completed project as the payment is one shot or hard to find good deals sometimes.

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                • #9

                  #9

                  Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

                  "What you see is what you get" principle mean a lot to me.

                  I wont mind paying extra for that principle.

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                  • #10

                    #10

                    Re : Pros and Cons of booking a flat/apartment during: 1. Pre-Launch 2. Launch 3. Midway - Under Construction 4.After Completion 5. Resale

                    In my view, the deliberation of whats the pros and cons is relevant only if one is restricted for choice due to funding and reason for buying.

                    Several factors can decide when a buyer enters into purchase..If its a first time buyer, a person with outright purchase capacity will obviously go for ready-to-move ones whereas a person going for a loan will opt for a less burdening longer tenure option with a popular builder..If the person is an investor than the future appreciation prospects like between launch to delivery can influence a decision, the interest outgo etc comes into play. The next thing is, whats the use of the flat?is it for end use or to let out? end users will prefer ready flats or projects with quick turn-around time while investors can wait and can gamble.

                    IMO, If you are a committed buyer holding for long term, It does not really matter which stage you buy..choose a good builder, comfortable budget and good location..all others will fall in place.

                    My earlier posts on similar topic

                    https://www.indianrealestateforum.co...449#post116449
                    http://www.indianrealestateforum.com...-post1488.html

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