The real estate sector in Mumbai has emerged as one of the most trusted and reliable investment option. The global economy, higher loan interest rate and inflation rate make share market and banks a risky pillar, whereas the real estate remain steady and it shows continuous improvement. When it comes to investing in property market choose a right location and the right property for assuring return.
The rate of property is high all over India but there are places, especially Mumbai, where the price of real estate is always in rise mode. Whether you want to invest in residential or looking for commercial property available to lease the city offer an immense alternative to the customers. The real estate developers offer great opportunity to its investors.
Investing in a home in Mumbai can be a big advantage.
Let us look at the scenario of market in Mumbai:
Suppose, if the current price of the house 80 lacs, rent for the same House is Rs. 16,000. IRR of the property value is 14% (The price appreciation per year.) For housing loan of Rs. 80,00,000 @ 10% over a 20-year tenure, EMI comes at Rs. 77,000 per month.
Now, if you plan to buy a house in Mumbai, you will pay Emi of Rs. 77,000 per month for the next 20 years. At the end of 20 years, the property will be worth around 10 crores at 14% per annum growth! So, if the property grows at 10%, it will be worth 5.8 crores. Hence, if you invest today, you are most likely to get the benefits of it.
So, if you are also keen on buying a new project in Mumbai, then this should be your checklist.
1. Remember that you should be cautious when you are taking part in an auction. Even though this is a very common way to buy a foreclosed property, that doesn't mean that you shouldn't do your homework. Before the auction you should go and look at the property in person, to see what kinds of repairs are required. You also need to make certain that the title is clear, otherwise you may find that you are paying more than you expected.
2. Once you are familiar with the whole foreclosure process, and you are comfortable with buying, renting or leasing, or reselling foreclosed properties, it's a good idea to have more than one foreclosure deal going at once. With multiple foreclosure properties, you will find that you have a good flow of cash coming in each month, and you don't have to depend on one lease or sale of a single property.
3. Make wise decisions. If you want to update parts of the house, the greatest returns on your investment will come when you update bathrooms and kitchens.
4. Target the right localities. As a homebuyer, do sufficient research to come up with an exhaustive list of locations that match your ideal buying criteria.
