Pros n Cons of Soft Launch Property

lemont By lemont, 21st Jan 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/13_xoxac/
Posted in Wikinut>Money>Property

Here we are discussing the meaning of investment in property under soft launch, what are advantages and disadvantages in investing them, and How one can shortlist the best soft launch projects.

What is Soft launch Project ?

Soft launch projects are projects which have not necessary approvals and also under pre launched stage, at this stage company opens limited number of flats, generally the builders want to check the market conditions so that they can actual launch the project. The response helps the company to fix the price in next phases. By that time brokers, consultants, underwriters create the market awareness and branding. And by that time Builder gets approvals.

Advantages of investment in soft launch property

Project under soft launch or pre launched projects are good for Investors as only initial booking amount is required to be paid and investor gets some time to make further payments as approvals and other things delays in actual launch. Price gap is good to encash between soft launch price and actual launch price.

Disadvantages of investment in soft launch property

Delay in launch is possible as actual approval delays, company remains silent over the time by which company can get approval, and due to which bankable of property gets delayed. And in such cases problem for investor is difficult to exit, for end user project gets delayed and the pressure of further payment.
If project layout gets changed then the floor plans, layout, towers or even the units can get changed, but if the sizes modifies the cost may increase further. That can put pressure over the end users.

How to shortlist best soft launch property

To play safe it is better for end user to choose the project of the builder who is having good background, have delivered some projects, good financial back up. As established group keeps the project planning more properly, they maintains brand image.

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Comments

author avatar Sivaramakrishnan A
28th Jan 2014 (#)

I understand lots of gimmicks are indulged in by developers in collusion with real estate agents to show high demand. It is better to be wary - siva

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