Crucial factors to consider before buying a home in Mumbai

The residential real estate market in Mumbai and the MMR (Mumbai Metropolitan Region) has shown robust demand of late. The second quarter of 2022, saw more than 20,000 new residential units launched across the region, catering to the influx in demand. Despite the high realty prices, increase in stamp duty and registration costs, and high rates of housing loan interests, the demand for homes in the financial capital of India, seems to show an upward trajectory. The real estate ecosystem of Mumbai provides ample opportunities for strategic investment for the city’s real estate tycoons. The growth can be attributed to high ROI in real estate in Mumbai, city-wide infrastructure planning and great connectivity & accessibility in most of the residential projects. Zeroing in on your first home in the thriving metropolitan of Mumbai can be a challenging and daunting task. This crucial decision requires strategic planning right from choosing the right locality to investing in a viable residential project. Knowing the basics of investing, helps you to take decisions with clarity and assurance. Consider the following factors, before choosing the home of your dreams.  1) Decide on the location – A number of factors influencing this decision ranging from proximity to the workplace, neighbouring amenities such as schools, colleges, hospitals, malls, etc., infrastructure, local population, proximity to places of worship and the existing transport infrastructure which includes roads, bridges, railway stations and monorail/metro stations and road connectivity. 2) Decide on the configuration of the apartment – Once you have decided on the location, the next decision would be, the configuration of the apartment required in terms of the number of rooms required. This decision should not just be based on the existing number of family members but should also account for additions to the family in terms of a spouse and children in the next 15-20 years. 3) Decide whether you want to invest in a ready to move or under construction: While ready to move in apartments are a sure shot safe bet, the cost of acquisition may be a limiting factor as the value of the apartment has matured to the surrounding locality and the full amount of the flat value has to be paid up front. Under-construction units offer buyers the flexibility of paying as per the construction schedule and the prices are generally offered at a deep discount to the surrounding market. Further, home loan interest rates for under-construction units are generally lower compared to loans against completed properties which further adds to a fruitful deal. 4) Invest time in a market survey:  Home buyers can now take informed decisions on under-construction flats and completed flats after the advent of RERA. In case one does not want to go through the traditional route of a real estate broker, one can do a quick survey on multiple online property portals where the pricing, MahaRERA number, date of completion, the profile of the developer, project amenities, flat configurations and floor plans are all available to see. Using the MahaRERA number and MCGM Citizen Search, one can easily see all the project permissions, completion status, litigations related to the project, details about the promoters and much more in case of under-construction projects. 5) Decide your budget:  A market survey allows you to get a clear idea of the current price trends for ready-to-move-in and under-construction flats in the locality in which they have finalized to buy their new home. The personal finances and the loan eligibility of you and your spouse generally help to finalize this decision. This is also interlinked with the configuration and the size of the flat one can purchase. 6) See the sample flat/completed unit: Once all internal decisions are taken, you should have a look at the show flat and understand the project from the developer or representatives. This gives clarity on the flat amenities and any changes in plans/future plans that may affect the project. On visiting the developer, you can also understand the availability of inventory and the view of the unit you plan to purchase. 7) Understand the pricing and negotiate: There are a number of taxes and charges that influence the pricing of an apartment. You should thoroughly understand all the charges to be paid and ask for an all-inclusive price so that there are no hidden surprises later on. Developers have a number of schemes that are launched year-round during festivals to attract potential home buyers into purchasing their properties. In case you visit the developer without a real estate broker, you can ask for a discount in pricing to the tune of the commission the developer would have had to pay the broker. Further, you can ask for a discount based on the terms of the payment you are comfortable with. 8) Documentation:  On booking a flat, you should ask for an allotment letter and the cost sheet showing the all-inclusive price and giving details of the payment schedule. It is mandatory to register a sale agreement after 10% of the amount is paid. One should thoroughly read and scrutinize the sale agreement before registration to know the terms of the sale and understand refund clauses and interest clauses in terms of delay in possession. On possession, you must follow up with the developer for the possession letter and other documents until you are inducted as a member of the society. 9) Consider your financing options:  With the skyrocketing property prices, you might need to cover the cost of your house with loans from financial institutes. Choosing a good housing loan, with competitive interest rates, flexible EMI options and easy repayment options will help you plan your finances wisely. Mumbai’s real estate market is one of the most viable property investment options due to a number of real estate options, the development of emerging micro-markets, excellent infrastructure & connectivity and a high rate of investment.  Buying the perfect property in Mumbai can be achieved with diligent research and some calculated risks. The author is the CEO and Founder of Legend Siroya Realtors. Views are personal.  Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.