Mumbai, the city of dreams, is also the financial capital of India. Naturally, buying property here is nothing short of a life goal for many. However, the property rates in Mumbai are soaring to new heights!
For instance, Andheri West and Mulund West have seen a hike in property rates by up to 43% and 50.5%. This increase in property rates in Mumbai is due to many reasons. To start with, Mumbai is a narrow isthmus which limits the available land.
Next is the metro’s economy, which receives a boost through NSE and BSE, the RBI and MNC headquarters, and Bollywood, among other industries. Also, good employment opportunities, excellent public transportation, and other such factors attract working Indians who are on the hunt to improve their quality of life to Mumbai.
If you foresee a future for yourself here it is only natural for you to want to buy a property in Mumbai. But regardless of whether you want to invest in a regular apartment in Mulund where you can provide for your family comfortably, or want to invest in luxurious properties like Palava in Dombivli, you must consider various points before making a decision.
Take a look at the following guide for advice on how to do so.
Consider the purpose of your purchase
Begin the purchasing process by considering the purpose of your investment. Ask yourself if you want to buy the house for personal use, to rent or to build your asset portfolio.
If you wish to buy it for personal use, you must consider your and your loved ones’ needs and wishes. If your purpose is purely investment related, you must search for a property in developing or developed areas that have the potential to give you high rental income.
Determine the time-frame of your stay
Next, based on the purpose of investment, ask yourself how long you wish to stay in the home. If the home is for personal use or for many years of stay, you may want to look for a property in a purely residential area keeping retirement and family needs like schools, places of worship, healthcare facilities, etc. in mind.
If you want to use it for a brief time as you’re expecting a transfer or are likely to move to a different city in the future, you may rent it out when the time comes. In such cases, consider keeping the investment to a minimum and buy a property close to work districts.
This way you can earn handsome returns through your property even when you relocate.
Evaluate your affordability and draw a budget
Next, evaluate affordability considering your sources of income, existing liabilities, and the number of dependents. This will give you an idea regarding the amount you will be able to spare every month for your home loan EMIs. Then, draw up a budget. This will help you weed out expensive projects that don’t fit your budget and narrowing down on the right options.
While crafting the budget, also factor expenses and costs that add to the purchase price of the home such as paperwork costs, brokerage, registration costs, stamp duty, and others.
Lastly, keep yourself updated with the latest financial and real estate news that can affect your investment decision. For instance, in November 2018, the Maharashtra State Legislative Assembly increased the stamp duty by 1% and it is now 6%. Not knowing such information will lead to unpleasant surprises later on and cause financial strain.
Filter options by the location and the locality
While selecting a property, consider the aspect of safety and convenience of locations with regards to transportation, infrastructure, etc. After narrowing down on feasible locations remember to gather more information about the neighbourhood, locality, and civic amenities.
Look for neighbourhoods and localities with provision stores, educational institutions, malls, parks, and hospitals for more convenience. Also, check if the locality is likely to appreciate and yield consistent rental income should you decide to let it out in the coming years.
Look up the builder’s credentials
Finally, research the builder and learn about its projects. Read reviews from existing investors and check for reviews on online customer portals. Also, don’t hesitate to discuss your concerns with the builder so you can buy your home with a clear conscience.
Finally, make sure that the property is free from legal issues. To safeguard your interests, make sure that the builder is RERA compliant.
With this guide, you can make the right purchase decision. Since a property in Mumbai may cost a fortune, make every penny count. You must consider seeking financial help to fund your purchase and narrow down on properties. In this regard, turn to Bajaj Finance Housing Limited for assistance.
It offers in-person assistance to search for the best property and a property dossier to help you understand the legal aspects of buying it. To fund your purchase, Bajaj Finance Housing Limited offers affordable home loans that give access to a significant amount of up to Rs. 3.5 crore so you don’t have to compromise on any aspect of your dream home.
What’s more, it also offers a hassle-free application and documentation process that you can further expedite by taking a minute to check your pre-approved offer.