Mumbai is a busy metropolitan city that has an amazing inventory when it comes to real estate options. The increasing number of migrants settling in from around the country directly affects the situation of availability of great properties. However, there are still various real estate options available for both, locals and NRI who are looking to invest. Considering the ongoing infrastructural developments, there’s an increased interest in luxury apartments in Mumbai for sale. People are aware that such an investment will ultimately result in great ROI in the coming future. However, here’s a few things you should consider before making such an investment:
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The Location Should be Ideal:
There are a lot of factors that contribute to making a location favourable. If the location that you’re looking at has prospects in the near future, it could certainly mean a great deal in terms of value. However, that also means that you’ll have to wait longer for the area to prosper in order to get the best results. Additionally, you need to make sure that the area will appeal to the people you’re going to sell or rent it to. This will require a certain set of amenities and facilities that will promise people a good lifestyle.
A few requirements that any good location needs to have in order to be a good residence are as follows:
Accessibility:
The location should grant access to nearby amenities and entertainment hubs in order to be appealing. Unless the property is close to popular retail centres and commercial shops, you’ll have a hard time bargaining for value. Whereas, properties that are surrounded or adjacent to commercial centres of the city are able to get the most prices.
Proximity:
This is the characteristic of a location to be close to office spaces and further useful attractions and necessary landmarks. Unless the residence offers less commuting time to essential places such as the superstores, banks, hospitals and office spaces; it won’t get a lot of value. People who wish to move will have to consider the daily transportation costs they’ll accrue. Ultimately, they’ll use that as their bargaining point to get you to decrease the asking prices.
The Residence Should Be Perfect:
Even if you’re thinking of buying properties in the slums of Mumbai, you should make sure that the property can last longer. That’s because there are a lot of infrastructure projects underway that are paving the way for development. Inevitably, they’ll end up raising the overall standards of the society and the same property that you got for an average price will end up valuing at exponentially higher prices.
However, for this to happen, it’s essential that the property is durable enough to survive that long. Keep in mind that space is a crucial factor but more than that, construction and maintenance play important roles as well. You can’t abandon the place and think of it as a safe investment. The last thing you need is a big-time problem popping up at the time of viewing. Surely, it will be better to keep a check on the place and maintain it in perfect condition.
You can hire real estate agents and property managers who offer assistance in this regard. The agents will make sure that they find a property that is constructed with the proper material and can last long. The managers will ensure that no damages go unnoticed and all maintenance is taken care of. Some people might avoid this by thinking these are all additional costs they don’t need to spend. However, that’s where they’ll be making a mistake and the people who do consider the maintenance will prosper.
Additional Costs:
The most common mistake that people make when it comes to buying properties is underestimating the total investment cost. Some of the important things you should be looking at other than the original pricing include:
- Debt to income ratio
- Property Tax
- Closing Costs
- Home Insurance
- Preferential Location Charges
- Parking
- Maintenance Charges and Service charges
- Civic Amenities Charges and Club Memberships
- External Development Charges and Infrastructure Development Charges, etc.
Needless to say, these additional charges will take your investment up by at least 25%. You’ll need to make sure that you count these factors while looking for 1bhk or 2 bhk flats for sale in Mumbai. The costs will ultimately rise with an increase in initial investment. Therefore, you can’t just make your decision based on just the initial asking price.