Investing in a new launch: a practical guide
A new launch can be the best price you will ever see on a project. It can also tie up your money for years if you skip the boring checks. Here is how to do it properly.
Buying at launch has one big draw: you usually get the lowest price the project will ever have, and the widest choice of floors and facings. The catch is that you are paying for something that does not exist yet. So the whole game is about reducing the unknowns before your money goes in.
1. Start with RERA, not the brochure
Every project in Haryana has to be registered with RERA before it can be sold. The registration tells you the approved plan, the number of homes, the promised completion date and whether the land titles are clean. It is public, it is free, and it takes ten minutes on the HRERA website. For one live example, our L&T Sector 86 updates page tracks the RERA status of that project.
If a project is still waiting for its number, as many do at the EOI stage, that is normal. Just keep your payment to the refundable EOI until the number is out.
2. Understand what an EOI really is
An Expression of Interest is a deposit that puts you in line for allotment. It does not lock a particular home or a price. Before you pay one, ask three simple questions, and get the answers in writing.
- Is it fully refundable if I do not get the unit I want, or change my mind?
- How long does a refund take?
- Is there any priority for EOI holders on price or floor choice?
3. Work out the real cost, not the headline
The price on the hoarding is rarely what you pay. Ask for a full cost sheet (here is the L&T Sector 86 price list as an example) and add up the extras: preferential location charges for corners or views, car parking, club membership, maintenance deposits, GST on under-construction homes, and stamp duty and registration at the end.
Also check whether the size quoted is carpet area or super area. Two homes with the same "sq.ft" can differ by 30% in usable space.
A quick rule: compare projects on price per square foot of carpet area, all charges included. It is the only number that is truly like for like.
4. Choose the payment plan that suits your cash flow
Construction-linked plans spread your payments over the build, so you pay as the towers rise. Down-payment plans can carry a discount, but your money is fully committed from day one. Neither is better in itself; pick the one you can carry comfortably if possession runs a little late. Our EMI calculator for L&T Sector 86 shows what different loans cost each month.
5. Read the possession and delay clauses
Look for the promised possession date in both the RERA registration and the builder-buyer agreement, and check what compensation the developer owes you if it slips. RERA gives you real protection here, but only if you know what was promised.
6. Judge the developer by what they have delivered
Brochures all look good. Delivered projects tell the truth. Visit one or two finished projects by the same developer, ask residents about build quality and maintenance, and see how close they came to their promised dates.
7. Sort out your home loan early
Get an in-principle approval before you book. Check that your bank has approved the project, or will once it is registered, and understand when disbursements start. It avoids nasty surprises when the first demand letter arrives.
8. Be clear about your horizon
If you plan to live there, the questions are about the home and the neighbourhood. If it is an investment, think about who will rent or buy it from you, and when. New launches usually reward patience; flipping before possession is harder than it looks.
9. Walk the neighbourhood
Drive to the site at the hour you would actually commute. Find the nearest school, hospital and grocery store. Maps are useful, but twenty minutes on the ground will tell you more than any brochure.
A short checklist before you pay
- RERA number checked, or EOI kept fully refundable until it is out
- EOI and refund terms in writing
- Full cost sheet, with carpet area confirmed
- Payment plan you can carry if possession is late
- Possession date and delay compensation noted
- At least one delivered project by the developer visited
- Home loan approved in principle
None of this is complicated. It just takes a little patience, and it is the difference between a launch that works out beautifully and one that keeps you up at night.
Quick answers
Is it safe to pay an EOI before RERA registration?
Only if the EOI is fully refundable and the terms are in writing. An EOI holds your place in line; keep anything beyond it until the RERA number is published and you have checked it.
What extra costs come on top of a new launch price?
Usually GST on an under-construction home, stamp duty and registration, preferential location charges, car parking, club membership and maintenance deposits. Always ask for the full cost sheet.
Is a construction-linked plan better than a down-payment plan?
Neither is better in itself. A construction-linked plan spreads payments over the build; a down-payment plan may carry a discount but commits your money from day one. Choose the one you can carry if possession runs late.
Thinking about L&T Sector 86?Get the price list, cost sheet and floor plans on WhatsApp.
