Updated on July 9th, 2019
Buying a property is a lifetime decision for a vast majority of people. It makes you excited and you are full of emotions! And, this puts you in a hurry!
What happens, in most of the cases, is that you look at some properties. And, if one of these gives a feeling of the dream home, you bounce upon that.
Of course, there is nothing unnatural in this. The way Mumbai room rent is increasing; people find buying home a better option. The stringent condition for the flats on rent in Mumbai by owner is another attributing factor for this.
Being the financial capital of India, it is the most costly place to stay. Buying a property in Mumbai means huge investment. Such a decision will impact your life and finances for sure. This is why you should never rush or allow your emotions to overcome logical considerations.
People believe in the myth that one should buy a home as early as possible. Unfortunately, this may backfire, if not done from the perspective of investment.
Anyone, whether he or she is in Mumbai for expat living or a native to the place, dreams to buy a home. Maybe the same is also haunting you. Don’t worry! Here are eight factors that influence property buying. Considering these will help you out to make the most informed decision.
1. Legal Diligence
Legal diligence is an essential, necessary and vital factor for buying a property. All chain deeds must be clear and the seller must have a clear title with all rights. Make searches with the appropriate authorities to check if the property is free from mortgage and any other encumbrances.
With present spree of urbanization in Mumbai, a vast area of lands is converted for residential uses. Check for conversion permission and permission to construct. Other than this checking of completion certificate and the occupational certificate is essential to take a purchase decision.
2. RERA Registration
There is a popular feeling that all projects fall under RERA or Real Estate (Regulation and Development) Act, 2016.
The fact is that a large number of projects are registered with mahaRERA and the number is steadily increasing.
The act covers projects that have an area of 500 square meters or more or the number of units is eight and above.
And the great thing about RERA is that it takes care of the buyers’ sentiments. Be sure that the project is registered with RERA before you dive in that. This will relieve you from a lot of hassles that may appear later.
3. Ready-To-Move-In Status
Plenty of homes are available that have either ready-to-move-in or under construction status. But the ready-to-move-in homes have a definite over the under construction category.
RERA imposes strict adherence to the completions. As a result, the developers have a tendency to registering projects with extended deadlines to keep provisions for delays. You do not face such problems with the ready-to-move-in homes.
The great thing about ready home is that you can see what you are actually buying and can move in immediately. Moreover, when you buy a ready home with a compliance certificate it does not attract any GST and, thus, makes it a cheaper option.
Remember, you are going to live there and not buying a home every year. This makes the location a prime important factor of your home buying project. Always put it on the forefront and check whether the location will match with your work profile. Locations with poor connectivity involve more commuting time and ultimately make the area inconvenient.
Availability of quality schools, colleges and universities are also essential. Moreover, there should also be provisions for shopping, recreation, and entertainment in the area.
5. Potentials for resale
You do not know what the future has for you. At present job opportunities are creating across the globe. So, no one knows for sure if he or she will be relocating. In such cases selling the property off is the most preferable solution.
Before you actually dive deep into the project think twice of you can resale it, if necessary. Search for the upcoming development projects. Also, do extensive research on the trend of growing property rates in that area. This will give you a fair idea. Go ahead, if that is favorable.
6. Rental Potential Is Also Important
Maybe you do not want to dispose of the property and like to give it on rent. If your property is located in a good locality with ample infrastructure, there will be no issue to give it on rental.
Make inquiries to find out the rents prevailing in the area. Also, find the trend of increasing the same. Compare this with your EMI to check if the rent growth is likely to be more than the EMI. If so, you can go for buying the property without any hesitation.
7. Size, Space, And Layout
The size and space you actually require are vital for making for purchase decisions. Buying a too small or too large home are both inconvenient. In the first case you will get fade up to adjust and the second one will involve more costs and maintenance hassles. Moreover, the home must have an adorable layout and include all the features that you have in mind.
8. Cost And Interest Rates
Cost and interest rates are also major factors that influence the buying of a property. Always go for the cost that you are comfortable with. Otherwise, it could be a burden. None can sacrifice the other proprieties in life. This makes the interest rate and EMI vital. As a thumb rule, you should never go for an EMI that is more than 40% of your net monthly income.
You certainly deserve to have your dream home. Considering the above factors will surely help you navigate through the process smoothly. Don’t feel shy to ask questions. By this, you will learn many things and be more confident to make decisions. Do your homework and enjoy getting the coveted keys.