Investing in real estate can be lucrative and timing plays a key role in maximizing investment returns. One strategy adopted by many smart investors is to buy properties at the new launch stage. In this article, we’ll discuss the various reasons why you should consider buying a property at this stage and the benefits it brings.
Advantages of buying a property in a new start-up stage
1. Possibility of capital appreciation
One of the main reasons to consider buying real estate during a new start-up stage is the potential for capital appreciation. Investing in real estate in the early stages of development will likely increase its value over time. As the development progresses, the surrounding infrastructure will be improved, and the demand for real estate in the area will increase. By buying early, you can take advantage of subsequent increases in real estate prices.
2. Early bird discounts and promotions
Developers often offer attractive early bird discounts and promotions to stimulate buyers during new launch stages. These discounts range from price reductions to additional perks such as free furniture and stamp duty exemptions. These offers can help you secure a better deal and save you significant amounts of money.
3. Better selection of units
The new launch phase gives buyers a wider range of units to choose from. You can choose the unit that best suits your needs, such as floor plan, view, and location within the development. This allows us to select properties that meet your specific needs and requirements.
4. Modern facilities and functions
Newly launched properties often come with the latest amenities and features to meet the evolving needs and preferences of homeowners. These facilities include state-of-the-art gyms, swimming pools, landscaped gardens, smart home systems and more. Purchasing in the new start-up phase, you can enjoy these modern amenities and improve your quality of life.
5. Potential for higher rental yields
If you are looking to buy a property as an investment, you may get a higher rental yield if you buy at the start-up stage. Newer properties tend to attract tenants willing to pay a premium for the latest features and conveniences offered. As rental demand increases, you can get stable rental income and increase your overall income.
6. Customization Flexibility
Purchasing a property in the new launch phase will give you more flexibility to customize your unit. You can work with developers to make specific changes or choose from a variety of optional upgrades to suit your personal taste and style. This customization option allows you to create a living space that truly reflects your tastes and lifestyle.
7. Possibility of lower down payment
Developers may offer more attractive financing options, such as lower down payment requirements, during the startup phase. This is especially beneficial for first-time buyers or those looking to invest with a smaller initial capital. A low down payment makes it easy to enter the real estate market and take advantage of potential increases in property values.
8. Better funding options
Apart from lowering down payment requirements, the developer may also offer better financing options during the new launch phase. These options may include dedicated loan packages, partnerships with financial institutions, and even deferred payment schemes. By utilizing these advantageous financing systems, it is possible to secure properties with favorable financing terms and reduce the economic burden.
9. Potential for higher return on investment
Investing in real estate during a new start-up stage may offer a higher return on investment. You can enjoy significant capital gains as your property appreciates in value over time. Additionally, if you choose to rent out your property, your rental income can contribute to your overall income. This rising capital value combined with rental income makes investment during the start-up stage an attractive opportunity.
10. Reduced maintenance costs
Purchasing a new property can minimize initial upkeep costs. Newer properties typically require less repairs and renovations, reducing out-of-pocket costs. Additionally, developers often provide guarantees for certain features, giving you peace of mind and further reducing potential maintenance costs.
11. Long-term growth potential
Properties purchased during the start-up stage have the advantage of long-term growth potential. As the surrounding area develops, the value of the property may increase. Holding real estate for a long period of time increases its value and can lead to a large profit when sold.
12. Opportunity to ride the rising real estate market
Timing the real estate market is difficult, but buying during the new launch stage increases your chances of riding a bull market. The real estate market can go through a period of growth, and buying early can help you take advantage of this growth. Investing in an uptrend can benefit from rising real estate prices and secure more lucrative investments.
13. Developer Reputation
Newly launched properties are often associated with reputable developers known for their quality craftsmanship and commitment to delivering excellent projects. Buying from a trusted developer gives you confidence in the reliability of the construction standards, materials used and overall development. This guarantee increases the value of your investment and gives you peace of mind.
14. Improve future resale value
Purchasing properties in the new start-up stage may result in higher resale value in the future. As a property ages, factors such as limited supply, increased demand, and improvements in surrounding infrastructure can increase its value. This increase in value can result in a large profit if you decide to sell the property at a later stage.
15. Benefits for early purchasers only
Developers often offer exclusive perks and incentives to early buyers. These may include unit selection preferences, access to special events and facilities, memberships to exclusive clubs and communities, and more. By becoming an early purchaser, you can enjoy these additional benefits and enhance your overall ownership experience.
Buying a property in a new start-up stage offers many advantages and opportunities. From potential increases to exclusive benefits and early discounts, investing at this stage can give you a head start in the real estate market. Plus, enjoy state-of-the-art amenities, customization options, and potential rental yields. Careful consideration of the benefits and thorough research will help you make informed decisions and benefit from the new ramp-up phase of your real estate investment.
Is buying a property in the start-up stage riskier than buying a ready-to-move-in property?
As with any investment, there are risks involved, but buying real estate during the start-up stage can offer unique benefits. Conducting due diligence, researching the developer’s track record, and understanding market conditions can help mitigate risk.
If I buy a property in the new launch stage, can I expect an immediate return on investment?
Real estate investment should be viewed as a long-term undertaking, so profits may not always be immediate. However, investing in the new start-up stage increases the chances of the property increasing in value over time and yielding higher rental yields.
What if the new launch phase delays development?
Real estate projects can experience delays for a variety of reasons. It’s important to carefully review the developer’s reputation, track record, and contract terms to protect your interests. Developers typically provide compensation or alternative arrangements in the event of delays.
How do I finance the purchase of real estate in the new start-up phase?
Funding options vary depending on your region and developer policy. Explore mortgages from financial institutions, developer financing packages, or talk to a professional mortgage advisor to find the financing solution that best fits your needs.
Are new launch properties always more expensive than existing properties?
Prices for new launch properties may vary depending on factors such as location, demand and market conditions. Some new launch properties may be priced higher due to their desirable features, while others offer competitive prices to attract buyers. It’s important to compare prices and evaluate value propositions before making a decision.