How to Plan to Buy a House in Mumbai?

Buying a house is a big decision that comes with many challenges. Here is a guide to help you plan when it’s buying a house in Mumbai.

Mumbai is where many want to own a house, but it can be daunting. To purchase a house in Mumbai, you must think of strategic planning. Everything has to fall in place, from choosing the locality to selecting the best residential assignment. But how to plan to buy a house in Mumbai?

Understanding the basics helps to make the right decisions in the home-buying procedure. Dive to understand the systematic approach to choose the best property in Mumbai effortlessly.

Because there are numerous options to select from and, therefore, more likelihood for errors, by following a systematic approach from beginning to end, you will eliminate the possibilities by contemplating every essential factor involved in purchasing a home in Mumbai. You streamline the process by cutting off the specifications that do not work for you. And move on only with what is best.

Why is Planning Essential to Buy a House in Mumbai?

This strategic process for discovering the best residence in Mumbai allows you-

  • You get detailed home-buying choices in the end.
  • The procedure of buying a home becomes more cost-efficient and efficient.
  • Effortless in shortlisting the properties based on the budget and preferred conditions.
  • No chance of making errors.
  • Conduct command over the buying procedure.

Steps to Plan to Buy a House in Mumbai

Choose the Locality

While purchasing a home in Mumbai, location is the main point of consideration. The reason for this is that in Mumbai, there are considerable shifts in costs and economic framework from one locality to the other. Therefore, starting with choosing the locality assists you in having a quick outlook on the budget. Moreover, the area becomes a key consideration point to making other conclusions about purchasing a Mumbai home.

While choosing the location while purchasing a home in Mumbai, consider two significant outlooks:

  1. Real estate outlook
  2. Fundamental outlook.

The Fundamental Outlook

The fundamental outlook merely reflects the factors that specify the life grade in the locality. It contains elements such as-

  • Transportation facilities
  • Infrastructure development
  • Employment opportunities
  • Electric and water supply
  • Healthcare and education facilities
  • Safety and Security

Getting the correct information on these fundamental outlooks of the area is essential. The best data sources could be the internet, research reports by government bodies, or asking the people who live there.

The Real Estate Outlook

The Real Estate Outlook deems the aspects closely related to the real estate ecosystem. It contains factors such as-

Now, you can shortlist the locality first with the fundamental outlook and follow the real estate outlook.

Compare Locality-Wise Rates

The costs of houses mainly rely on supply and demand. If the demand is more, the rates tend to increase and vice versa. The factors that activate the demand in the area are many. These could be:

  • Ease of living
  • Employment opportunities
  • Quality of life
  • Transportation

Thus, the rate of properties in better areas is always on the rise. But if your budget is limited, you can invest in the areas that are emerging and are predicted to develop in the future.

Keep in Touch With New Projects

More than comparing States of different localities is required while evaluating the locality. Along with the rates, assess the upcoming infrastructure projects for good evaluation. The proper approach will be to review whether the area comes within the fundamental infrastructure projects. For instance, constructing the Mumbai Metro will increase real estate demand in some locations.

The best sources to discover future infrastructure projects are the internet, publications by government bodies, news about real estate, etc. To put it simply, you can select the locality by deeming the series of following queries:

  • Availability of schools, colleges, workplaces, and hospitals.
  • The quality of life, livability, security, and stability.
  • The affordability of price trends in the area
  • The future development of the area.
  • The future infrastructure projects, employment opportunities, and overall regional economic development.

Sometimes, the budget comes to be the fundamental factor in deciding the area. You must find the middle path between the best location and your budget.

Decide on Your Budget

After choosing the location in the initial phase gives you a rough assessment of the total budget. It helps you to calculate –

  • The full amount you require to borrow from the bank.
  • Relevant EMIs on the home loan amount.
  • The period or loan tenure to repay your loan.

Ideally, a good budget lets you fulfil all the expectations of purchasing a home in Mumbai without an unbearable economic burden. For this, you must be prepared for every cost element you face while buying a home in Mumbai. Therefore, the home loan eligibility and costs of purchasing a home are the primary aspects of formulating your final budget.

Home Loan Eligibility

Banks approve the home loan based on your net monthly revenue, and the total home loan amount is commonly around forty to fifty times your net monthly earnings.

You might be thinking about how much you can borrow from the bank and if there is any rule that determines the ideal EMI.

Though it relies upon person to person for their income sources, commonly, the EMIs should not be more than forty per cent of the monthly net earnings. It assures that you are not overburdened and can smoothly manage the daily expenditures of your family.

Every bank retains its eligibility measures and various terms and conditions. The bank requires proof of identity, monthly income, and property-related papers. You should read all the points cited in the loan agreement carefully and check the interest rates. Also, you can assess the applicable EMIs on the home loan rates beforehand.

Costs Involved in Purchasing Process

The selling cost of the house is not the final price. There are always several different cost elements involved in the buying procedure. Some of these contribute mainly to the final cost. Knowing costs priorly ensures the correct budget structure—the other cost elements in purchasing a home in Mumbai.

Stamps Duty Charges

These charges are imposed by the state government and are compulsory to pay while purchasing a property.

Maintenance Charges

Maintenance charges are either charged at the time of investment or monthly. Tax is applicable if the maintenance per month is more than Rs 7500.

Preferential Location Charges

For a good unit location within the building, you are required to pay an additional amount called Preferential Location Charges.

Amenities Charges

Sometimes builders charge separately for the play area, gyms, clubs, etc.

Brokerage

If you prefer an agent to assist you with property finding, he charges one or two per cent of the total deal.

Budget Wise Supply and Demand In Mumbai

Once you have an outline of the budget, it is also essential to understand the demand for properties or flats of a similar budget range. If there is adequate demand, sufficient residential projects in Mumbai may be available, and therefore, there will be more choices available.

Choosing Between Under Construction or Ready to Move Flats

In Mumbai, some people want to buy under construction while others prefer ready-to-move property because both choices are relevant for their unique advantages.

Why do buyers want to purchase under-construction properties?

Mumbai is one of the most expensive real estate markets. Thus, it is not always feasible for the buyer to deal with the financial burden of purchasing a new home in Mumbai. Nonetheless, under-construction properties authorize buyers to effectively organize the finances as the expenditures are related to the construction procedure. This payment flexibility is the major reason for choosing under-construction properties.

Besides, since there is a substantial time between the purchasing and the actual possession, you obtain a high property appreciation during the waiting duration. Therefore, under-construction properties in Mumbai come with significant discounts that attract most people.

Why do buyers want to purchase ready-to-move properties?

In Mumbai, the rents are extremely high. So, waiting for the under-construction properties implicates the rent payments along with the EMIs. On the other hand, ready-to-move-in flats cases provide instant custody saving the rent expenses.

Moreover, the buying procedure is more transparent as there are no uncertainties and construction differences. However, people have to be prepared for the immediate financial demands.

Deciding the Size of the Property

Deciding on the locality and the unit configuration, like 1, 2, or 3 BHk, is exclusively dependent on your budget. The locality you get for distinct sizes could differ depending on the projects or the builders. If you have decided on one configuration, check out the accessibility of the new projects for those configurations.

In Mumbai, there are almost consistent popularity for 1, 2, and 3 BHK flats. Therefore, you will have several projects with your convenient configuration for purchasing a home in Mumbai.

Keep in mind the following key points while purchasing a home in Mumbai:

  • Compare various properties based on the carpet area.
  • Know the apparent distinction between built-up area, carpet area, and super built-up area for transparency in the deal.
  • Know your prerequisites and keep the margins on your budget if you want to raise the budget for more space.

Things to Remember While Selecting the Best Real Estate Developer

There are two kinds of residential undertakings in Mumbai. The first is a standalone project which delivers quality residential houses with adequate features. While the other is lifestyle-oriented projects which have full end-to-end amenities and facilities.

Thus, knowing your prerequisites is the initial stage while choosing the best project. You can look into the list of top builders to discover the best standalone or lifestyle-oriented project.

The preliminary study on the builder may help you to select the best one. But the only analysis of the builder is not enough. You have to check out the projects of the various builders before concluding anything because there is a likelihood of good projects from emerging builders.

So a fundamental comparison between different builders is a must before purchasing a home in Mumbai. Given below are some of the parameters to compare various residential projects in Mumbai:

  • Location: Prefer a project near the school, college, workplaces, and other essential facilities.
  • Super Built-up Area: It involves corridors, lift lobbies, common entrances, storage spaces, park areas, etc.
  • Amenities: Prefer the project, which has quality amenities like a gym, play area, clubs, jogging track, etc. Compare the prices charged by the various builders for the amenities.
  • Facilities: Facilities such as safety, security, and parking are the three major required facilities. Also, compare the quality of these facilities that provided different projects before deciding.
  • Prices: Compare the rates of the several projects by considering the build-up area, carpet area, amenities, facilities, and location collectively.
  • Builder: Search the developer’s track records and the authorizations from the regulatory bodies.

Conclusion

Purchasing a house in Mumbai is time-consuming and should be taken lightly. Nonetheless, with adequate forethought and planning, it can be accomplished smoothly. This information is suggested primarily on the back of a profound examination of the real estate enterprise surrounding the city of dreams, Mumbai.

FAQs

Is it essential that the loan should be taken only from housing finance firms?

No, it is not essential that the loan should be taken only from housing finance firms. One may take a loan from any corporation or person, even from household members.

What is the general process for a home loan application in Mumbai?

The process of home loan application in Mumbai involves several steps:

  • Proposing home loan application
  • Discussing with the bank manager
  • Payment of the process fees
  • Verification of documents
  • Approval procedure
  • Checking of property documents
  • On-site estimations
  • Calculation of the home loan amount
  • Agreement
  • Loan disbursement

What are the additional expenses to consider while buying a house in Mumbai?

The additional expenses while buying a house in Mumbai include stamp duty, registration cost, interior decoration, water supply, electricity connection, and so on.

How to choose the best builder when buying a home in Mumbai?

To choose the best builder for buying a property in Mumbai, check for the following:

  • Tracked record of the builder
  • Approvals and licenses
  • Financial standing
  • Past delivery timelines
  • Reviews and ratings
  • Number of projects
  • Quality of the projects
  • Services after the delivery