The Beating Down Factors For Mumbai Property

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Mumbai property has been facing several crunches: the slowdown of the real estate market in the city has been seeing from quiet sometime now. In spite of all the speculations regarding it getting bolstered up, it has not been able to hold itself high. The ever-staggering prices always dampen the spirit of a common buyer and the never-ending wait for price-correction hinders any “resurrection” of his faith in the realty market. There are several adversities that the real estate is facing right now.

The slump in Indian economy has directly effected property in Mumbai. This has resulted in increase in construction costs. With the hike in prices of inputs used for the developmental projects, the overall price of both residential as well as commercial markets are now sky-rocketing. The builders are not willing to pare down the costs and the much anticipated price correction never finds its way into the realty market. These astronomical costs have lessened the interests of a buyer into making purchases. Though data indicate that the demand for properties has raised by 16% in the first half of 2013, yet people are settling for budget projects only.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

With the lack of interest in the new and luxury projects, a big chunk of Mumbai property is lying vacant at present. As there are no takers, the developers are incurring losses and to recover these, they are hiking the property prices in affordable areas too. What's the result? The houses in localities known for offering budget prices are getting sold at higher rates. The builders have resorted to create artificial demand in such areas to fool the customers.

Then there are new FSI regulations: these shall be able to bring back the much-needed transparency, but it is very problematic to apply them to the under-construction or near-to construction projects. The redevelopment in such cases would mean financial loses to the developers and the prices to soar further. Another crunch is the prolonged time taken to get a project get approved from government authorities. This adversely effects the interest of developers in launching any new projects. With such a scenario, the real estate Mumbai property is witnessing a slowdown in any new projects.

The highly volatile prices have further aggravated the situation. The property prices in the city go up and down too frequently; this makes it difficult for the builders to buy big plots/land. Such an unpredictability does not work in favor of the developers or the end-users.

Buy/rent/lease rooms, flats, bungalows, office spaces, studio apartments, independent floors, godowns and plots at Makaan.com. This fastest growing property portal lists under-construction and completed projects from developers and land owners throughout the country.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: February 19, 2018 — 2:08 am
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