Food for thought…. The City of Dreams, the Maximum City, is also the city that invests in you!
Yes, that’s right, Mumbai invests in you!
How?
Mumbai serves you with several opportunities, with dreams coming to life, with the warmth of togetherness and wholesomeness.
This is precisely why people here never want to leave the city. People staying here, either live on rent or buy a house to become homeowners while some invest looking at how Mumbai has always had the best to offer!
Now, first-time home buyers in Mumbai might break into a sweat while making this decision, however _Nayaa_ has ‘the checklist’ that you need to consider while you’re in the buying decision process.
Here are a few:
- Budget
You can reach the decision-making process for a purchase in real estate only when you have a budget in mind. Considering Mumbai’s property rate, we suggest you break every cost related to the investment Which includes:
- Base price of the property
- Stamp Duty: It is the tax levied by the government for the transaction of property(buying/selling). This is generally around 4 to 7% of the circle rate and for Mumbai, it is 6% + 1% metro cess. Stamp duty paid at a circle rate
- Registration Fees: 1% of circle rate
- Additional Maintenance cost: This price varies depending on location and it includes security, lift charges, utilization of amenities, maintenance of the property and other common things
- GST: GST is charged for buildings under construction. 1% GST is charged on per square foot cost of the property if it falls under affordable house and 5% if otherwise. But if it is ready to move house or is a resale property then no GST has to be paid
- Parking charges: Can vary in different societies and some charge refundable deposits for parking
- Property size
Considering the minuscule structure of houses in Mumbai, you must know if your budget matches your expectations of the number of rooms and carpet size of the house.
You should not overlook these important points:
- Carpet area: Net usable floor area excluding area occupied by external walls and common premises
- Built-up area: Carpet area + Area occupied by external walls
- Super built-up area: Built-up area + Area of common premises (lift, staircase etc.)
- Location
After determining your budget and size preferences, narrow down locations that align with your expectations. Mumbai is very area-sensitive when it comes to real estate! There can be a noticeable difference in the properties available for the same budget in different locations in Mumbai. For instance, a 1 BHK in South Mumbai compared to a similar sized 1 BHK in West Mumbai may have a price difference of at least ₹30,000 per sq ft.
We recommend choosing a location that aligns with your lifestyle and is convenient for your needs. Ensure it is close to public transport options (if necessary), schools, hospitals, and other essential services.
Additionally, keep in mind that the character of the neighbourhood can vary significantly depending on the location in Mumbai.
- Construction Quality
When you decide to purchase a house, construction quality will determine the safety of your stay. Certain things you can keep in mind to run a quick check for the same are:
- Mivan construction
- Check the strength of the pillars by ensuring they are built straight and uniformly
- Evaluate the quality of the plaster and finish by inspecting the walls for any cracks or signs of wear
- Assess the quality of the doors and look for any gaps in the door and window frames
Another important approach to ensuring construction quality is to verify the credibility of the developer. Look for feedback from previous buyers and consider their delivery timelines, services, and overall experiences.
- Price Trends & ROI
Real estate is a dynamic industry, and it’s crucial to analyze various price trends in the market to make comparative assessments between similar property sizes in different areas. This approach aids in making informed decisions and identifying the right time to invest.
The goal is to ensure value for your money, often referred to as Return on Investment(ROI). To evaluate this, a thorough market study is essential, taking into account any future developments in the neighborhood to understand the property’s potential resale value.
- Property Maintenance
In Mumbai, residential societies offer a range of amenities, such as lifts, car parking, gyms, and swimming pools, with specific features often dependent on the price. However, it’s crucial to emphasize that proper maintenance of these amenities is essential. The upkeep of the society significantly impacts residents’ comfort and reflects the credibility of the developer.
- Legal documents and formalities
Investing in a property without verifying documentation is similar to buying a car without checking its engine! The risks behind not checking documents are humungous for the kind of investment you plan for. Therefore, you must do your due diligence before the purchase. The list of documents you must not overlook are:
- Title Deed
- No Objection Certificate (NOC)
- Property Tax Receipts
- Sales Deed
- Occupancy Certificate (OC)
We hope this checklist comes in handy for your first purchase in Mumbai! However, whenever you find yourself struggling to get the best home, Nayaa is here to help.
Nayaa is a Mumbai-based real estate firm that takes pride in being a part of the home hunting journeys of our clients. Your dream home is our responsibility, because, for us, you come first!