How to balance ROI v/s Risk?

The most important challenge an investor faces while investing in a property development is the Risk v/s ROI assessment.
In order to do this it is important for us understand that all "STANDARD" property developments go through a broad category of VI Phases:

Phase I: Pre-launch: a period when the developer has just finalized the plans of the project and obtained or in process of obtaining all required clearances.

Phase II: Launch: The developer sets up a site office / may have a Bhoomi Pooja / and the site work commences with excavation and foundation laying and the rise of structure.

Phase III: Work in progress: The structure comes up along with the walls

Phase IV: Plastering & Interiors work begin like tiling / Bathroom work / Electrical fittings etc

Phase V : Landscaping / Club House & Other Facilities start coming up

Phase VI: Possession & Registration (RTM)

Depending on availability one can enter the project in any Stage.

It is important to note that the earlier you enter the project greater is the ROI and also higher is the Risk. Average pre-launch rate can be expected to be between 40 to 60% of RTM !

You can always further minimize the "Risk" factor by selecting a property of a reputed developer.