Investment in real estate is always a priority for Indians. According to a survey, 60% of individuals want to invest in real estate and many investors have invested in the real estate which is 50% -60% of their total portfolio. Moreover, if the location of real estate is Mumbai, the financial capital of India then I think nobody can resist their wish to have a flat at least in the suburb area. The government of India is also encouraging the investment in real estate for boosting economy. If you are twenty-something and want to buy your first home here is the guide how should you approach to make your dream into a reality.
After demonetisation, the interest rate of the banks and NBFCs have gone down drastically which creates more attraction towards investing in the real estate. In today’s article, we will look into the factors from location to price what you should take care before investment in Mumbai real estate.
Location of Property
The most important factor in choosing a residential flat or plot is the location in the city. How much is the distance of the property from the facilities like school, colleges, hospital, market etc. where you have to go daily. The rental price also depends on the location. The location should be such that where you will get high rent or according to your needs. But also remember that the price is high when the location is good. So, you have to balance your budget or affordability with the location you want. Navi Mumbai is arising as a good location for real estate investment in Mumbai. But you have to also ensure the benefits of exact location, upcoming infrastructure facilities when the project is completed. Always do a site visit personally before actually investing in the property.
I have explained the importance of location in the first point. But the better location has the better price. If you have a constrained budget, it is better to invest in the area which is to be developed in future. Properties in the under-developed regions are cheaper than the properties located at a fully developed area. The areas like Panvel and Belapur are rising as new property investment destination among the investors as there is lower price compare to Mumbai. The recent announcement of an airport at Navi Mumbai makes it even more attractive property investment destination. Hence, before investment, do a thorough study of proposed developments which are to happen in next few years and how it can add value to your property.
Assess the Advertisement
The builders and promoters are running advertisements through all types of media while promoting the project to prospective buyers. Many times they lure the customers by offering interest-free period, deferred payments, freebies etc. The values of these are to be assessed carefully. These offers are very cheap compared to the value of investment what you are going to do. As an individual, we are unable to compare or do the complex calculation of interest and all. As a result, most investors are ignorant about the actual monetary value of the benefit. There are professionals who can do those complex calculations for you. Do not hesitate to take the help of those professionals for a small consultancy fee they charge because you are taking a huge investment decision which should benefit you in the long run.
The actual price of the property should be checked with the price what is asked by the builder. Most of the cases, builders are putting a higher price for the properties and get it appraised by the certified professional appraiser. Have a close look at the location, infrastructure, and population density in the area etc. and compare them with the price. Moreover, calculate the fees of stamp duty, registration charges, municipal taxes etc. for the property while checking the valuation of the property.
Check the price of last dealing with the housing society if you are buying a resale property which will give you an idea of actual price. You may check the various online forums also where you can post the question and seek an answer from the like-minded people. My suggestion to the prospective buyers would be to take professionals help who can evaluate the property on behalf of you.
Also Read: Five Reasons Why You Should Not Prepay Home Loan
Always check the legal aspects of a project such as the deed of the land, approved building plan from concerned authority, required environmental clearances etc. Check the title deed whether the builder or promoter is the owner of the land or they have an agreement for the development of the property on the land. Ensure that the land is without any legal dues to government departments for which you have to pay after taking the property. It is always difficult for an individual to check all the legal documents and understand. You can take the help of a lawyer or professionals who are dealing with the real estate investments. It is better to spend Rs 5000 to finalise an investment of 50 lakhs rather than saving a penny and going into a larger trouble with a bad investment.
Seeking Help and Guidance From Professionals
Most investors are ignorant of the best ways to verify the above factors and as I said earlier also it is very difficult for an individual investor to check all the points and evaluate. That is why they need to seek the services of renowned professionals in the field. Roofandfloor.com is one such portal where investors can get honest and reliable advice about the best investment options in real estate available in Mumbai. The company, driven by integrity, is a subsidiary of the 137-year-old The Hindu group and strives towards helping home buyers to get the best deals. They offer the following services to ensure that the experience of purchasing a property in Mumbai proves to be a smooth and hassle-free experience for the clients.
Share your thoughts and experiences if you have already bought property in Mumbai.