Real estate has always been a popular investment option, but it can be difficult to get started. Prices are high, and it can be hard to compete with other investors for the best properties. If you looking for a way to maximize your returns on real estate investments, consider early stage property investment in a developing project. Early stage investment offers a number of benefits, including first mover advantage, maximizing capital appreciation, and a wider range to opt for preferential units.

In this article, we will discuss the benefits of early stage investment in real estate in more detail, as well as the different types of early stage investments available and the risks associated with them. We will also provide tips on how to increase your chances of getting an allotment in a pre-launch or launch stage real estate project.

Benefits of Early Stage Property Investments

Investing in a real estate project during its initial phase gives you a number of advantages over investors who invest later in the development cycle. These advantages include:

First Mover Advantage with Early Stage Property investments

Investing in a project during its launch enables you to harness the first mover advantage. This enables you to buy property at a lower price than what it would be few months after the launch and subsequent price escalations.

• Entry at lower price: Early stage investors usually get to purchase properties at lower prices than those who invest later in the development cycle. This is because price increases with time and construction associated, as a project nears possession
• Choice of unit: Early investors have a wider selection of units to choose from, including the best-facing, corner, direction of choice and most desirable units.
• Inaugural offers and benefits: Many developers offer special inaugural offers and benefits to early investors, such as free parking, preferential pricing on amenities, and waived maintenance fees.

Maximizing Capital Appreciation

The earlier you invest in a property; the more time it has to appreciate in value. Implying one can sell the property at a higher price later and earn a good return on investment. This is especially true for properties in developing areas or those that are undergoing rapid development.

Returns Exceeding Property Appreciation

This means that the lesser you have paid for a property against its sales value, the higher your returns will be, if exit is made before complete payment against the unit. This is because property appreciation is calculated as a percentage of sales value returns are a percentage of amount paid against the unit.

For example, if the price of a property has increased by 20 per cent and you decide to exit after paying 50 per cent of sales value, then your return will be 20 per cent/50 per cent = 40 per cent.

This is because only 50 per cent of the amount was paid, but the price increase is considered on the total price of the property.

Available Options for Early Stage Property Investments

Pre-Launch Stage

A pre-launch in real estate is when a developer announces a new project before it has received all of the necessary approvals and construction of the project has not commenced. This may have been done to gauge interest from potential buyers and to generate excitement about the project. As per prevailing RERA norms a developer cannot start sales to retail investors before RERA registration of the project is in place. Hence it a rare probability of reputed developers operating in this space

Launch Stage

The project launch stage in real estate is the official start of the sales process for a new development. This happens after the developer has received all the necessary approvals and in registered RERA for certification. Construction work for the project can start at this stage. The developer starts marketing for awareness of the project to attract potential buyers.

Feature	Pre-launch stage	Launch stage
Construction status	Construction cannot begin	Construction can begin
Availability of units	All units may be available for purchase	Lesser units may be available for purchase
Pricing	Prices are lower during the pre-launch stage	Prices are usually higher than the pre launch stage
Advantages	Least possible entry price	First offer price, more than pre-launch stage if was offered
Risks	Approval and legal clearance timelines can extend, no disclosure of plans and specification	Approvals in place, all clearances and approvals are available

Risks Associated with Early Stage Property Investments

Both pre-launch and launch stages have inherent risks associated with them, some of these risk can be as follows

• Construction timelines might not be adhered to
• Funding Issues associated, with project development
• Quality of construction may be a question
• Demand may go down with time in the short term

Risk Vs Return dilemma in Real Estate Investment

The best stage to invest in depends on your individual circumstances and risk tolerance. If you are looking to maximize your returns, you may want to consider investing during the pre-launch stage. However, you should be aware of the higher risks associated that comes with govt. approvals and clearances not being in place.

If you are looking to reduce your risk, you may want to consider investing during the launch stage. However, you may not get the same level of discounts and other incentives that are available to early investors.

It is important to do your research and understand the risks involved before investing in any real estate project, regardless of the stage of development. You should also consult with a qualified financial advisor to get personalized advice.

Securing Your Spot, Ensuring Allotment in a Hot Real Estate Project

Reputed developers follow RERA regulations. After receipt of RERA, developers start receiving EOIs (expression of interest) from customers at a publicly disclosed price, along with unit preferences. The project is then officially launched; prices may remain the same or the might increase depending the response received from buyers. Application forms are expected to be received on the day of launch or post it and final allotment of units is done post receipt of application form

KnowbleR can do this for you- just drop us a message with the name of the project you are interested in and we will inform you the day the EOI/ application form for the same is available from the company. We have also mentioned the upcoming launches in our articles Noida’s Luxury Housing Market: Upcoming Projects And Trends and Commercial Property Investment, Upcoming And Existing Options In Noida

Conclusion

In the ever-evolving world of real estate investments, timing is everything. Whether you’re seeking the thrill of early stage investments or the security of the launch phase, understanding the benefits and risks is crucial. By following our expert advice, you can make informed decisions, maximize your returns, and secure your place in the world of real estate investing. Remember, it’s not just about owning property; it’s about building your wealth and securing your financial future. Happy investing!