Advantages & Disadvantages of Investing in Later Phase of a Project
Jan 04, 2017 Home Trading Steps
It’s necessary for one to invest wisely in the property so the best planned investment could prove fruitful over the years to come and the smallest mistake ever made while making an investment can give you lifetime regret. So it’s always advised to make the best possible decision while investing in a property. It’s necessary for one to be aware of investing in which phase of the project so let us further understand the factors which are favorable and non-favorable while making an investment in later phase of the project.
Favourable factors to invest in the later phases of a project
Sale and delivery of the property on derived time
It’s necessary for the developer to deliver the project on time this shows the commitment of the developer this is a way in which developer can show its potential. This not only helps to improve the goodwill of the developer but it also automatically helps to attract more buyers for the other newly launched and later projects. This also proves sales and account stream of the developer in healthy stage and quick delivery of the project.
Easy to borrow from banks and financial institution
It’s easy for a person to get a bank loan as the first phase of a project is complete and delivered so bank and financial institution have the confidence on such projects as such projects are already on the cleared list which does not make a huge problem for the borrower to get a loan at the later stages.
The ability to make an informed decision
As there is a completion of first stage buyers and investors have an opportunity to inspect and forecast how the project would further shape and look at the specification and amenities through a birds eye point of view. The position of the project, market guidelines and customers reviews can help to take the final decision.
Full occupancy
There are chances where the newer projects may not be fully occupied so due to fewer residents it may lead to high rise maintenance cost being shared among few residents but if the project is full and all the residents are occupied it will lead to falling down and low maintenance cost.
Non Favourable factors to invest in the later phases of a project
Additional payment in the later phase
The subsequent later phase of the project has usually higher charges compared to the earlier and initial phase as it also may be due to the completed project and increase in the demand for that project. So the buyer may have to pay higher charges for the same property which was for the fewer prices at the earlier stage. It also does not lead to that high amount of appreciation in the initial years.
Hidden charges and other malpractices
The developers may imply hidden charges which the buyer may not recognise easily so the buyer should be aware of all this. The buyer should also find the possession details before purchasing the property. There are chances that the developer may attract buyers with different schemes to sell off the non-selling property it is necessary that the buyer be aware of all these malpractices.
Hence, the buyer always needs to be aware of every single thing. A buyer in detail should study the earlier projects of developer and do lots of research and ground work before making any investment. If the developer is unprofessional in his approach and has been facing delays and problems and leaves the project incomplete in the initial stage than project may face lots of problems in the subsequent stage.
Favourable factors to invest in the later phases of a project
Sale and delivery of the property on derived time
It’s necessary for the developer to deliver the project on time this shows the commitment of the developer this is a way in which developer can show its potential. This not only helps to improve the goodwill of the developer but it also automatically helps to attract more buyers for the other newly launched and later projects. This also proves sales and account stream of the developer in healthy stage and quick delivery of the project.
Easy to borrow from banks and financial institution
It’s easy for a person to get a bank loan as the first phase of a project is complete and delivered so bank and financial institution have the confidence on such projects as such projects are already on the cleared list which does not make a huge problem for the borrower to get a loan at the later stages.
The ability to make an informed decision
As there is a completion of first stage buyers and investors have an opportunity to inspect and forecast how the project would further shape and look at the specification and amenities through a birds eye point of view. The position of the project, market guidelines and customers reviews can help to take the final decision.
Full occupancy
There are chances where the newer projects may not be fully occupied so due to fewer residents it may lead to high rise maintenance cost being shared among few residents but if the project is full and all the residents are occupied it will lead to falling down and low maintenance cost.
Non Favourable factors to invest in the later phases of a project
Additional payment in the later phase
The subsequent later phase of the project has usually higher charges compared to the earlier and initial phase as it also may be due to the completed project and increase in the demand for that project. So the buyer may have to pay higher charges for the same property which was for the fewer prices at the earlier stage. It also does not lead to that high amount of appreciation in the initial years.
Hidden charges and other malpractices
The developers may imply hidden charges which the buyer may not recognise easily so the buyer should be aware of all this. The buyer should also find the possession details before purchasing the property. There are chances that the developer may attract buyers with different schemes to sell off the non-selling property it is necessary that the buyer be aware of all these malpractices.
Hence, the buyer always needs to be aware of every single thing. A buyer in detail should study the earlier projects of developer and do lots of research and ground work before making any investment. If the developer is unprofessional in his approach and has been facing delays and problems and leaves the project incomplete in the initial stage than project may face lots of problems in the subsequent stage.
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