There is an old saying that goes, home is where your heart lies. If you are someone who feels a special connection with the city of Mumbai and has a desire to own some property here, we understand that feeling. If you are willing to do your research and take some calculated risks, there are ways to buy real estate in Mumbai. So read on and find out how you can own a piece of this beautiful city while also saving money in the process.
What has Changed about Buying Real Estate in Mumbai?
Buying real estate in Mumbai used to be a very straightforward process. Now, with the introduction of RERA – Real Estate Regulation Act (RERA), which is created by the Government of India to protect buyers from the fraudulent practices of the real estate sector. RERA was implemented on 1st July 2017, and ever since then, the rules of the game have changed for real estate in Mumbai. Now, when you want to buy a property in Mumbai, you must follow the due process. You must be very careful about the company you are talking to, their credentials and the person you are dealing with. RERA has also put a cap on the amount of money that one can invest in a single property.
How to save money when buying property in Mumbai?
Buying property is an important decision, and you should be very careful about it. However, if you approach the process with a bit of caution, you can still save money when buying property in Mumbai. Here are some tips on how you can save money when buying a property in Mumbai:
- Do your Research – This is the first and the most important tip on how to save money when buying a property in Mumbai. This means that you should read as many articles and blogs on the subject as you can find. Also, you should talk to various experts to know more about the market and the various options you have. If you know what you want and how much it is worth, you will be able to avoid getting frustrated of the process.
- Start Early – The market in Mumbai is very competitive. When someone buys a property, the rest of the buyers get the message immediately, and the price of that particular property rises. So, if you are someone who wants to buy a property in Mumbai, you should start looking for properties when you don’t actually need one. This way, you will be able to keep a track of the market and understand how it works.
Basics of purchasing a property in Mumbai
There are certain documents that you will have to produce to buy a property in Mumbai. These documents include your proof of residence, your identity proof, bank account details, a letter from your bank regarding the funds that you have, a letter from your employer regarding your job, PAN card, your latest 3-year tax return and your net worth.
Things you should know before starting your hunt for property
There are a few things that you should know before you start your hunt for property in Mumbai. These things will help you understand the market better and help you make a more informed decision. They are:
- The budget – How much are you willing to spend on the property? This is one of the most important things that you must know before starting your hunt for property in Mumbai. Without a budget, you will end up wasting a lot of time without getting anywhere.
- The current market situation – It is important to understand the current market situation before starting your hunt for property in Mumbai. This will help you understand where you stand in the market.
Steps for the Property Purchase in Mumbai:
1. Decide The Budget
Your budget is the only thing that will define your house search. Everything depends on how much you can spend or want to spend on buying a property in Mumbai. Real estate builders in Mumbai are now coming up with affordable housing projects so there is a very high probability that you can find a house, which fits your budget.
2. Select a Micro Market
Having a house in a safe locality with schools, hospitals, good connectivity, etc is what you should look for. Along with this, you also need to look at the historic price trend for that locality. You need to do an ample amount of research regarding the locality. Refer to CREDAI-MCHI and Truboard Partners joint research report on House Purchase Sentiment Index which will give you an insight of which micro markets in the Mumbai city are in demand or are being considered by potential property buyers.
3. Choose a Developer/Project
Once you have set your budget, you need to see if the houses shown to you are from a reputed real estate developer. The developer should have a good record of accomplishment of projects. You need to check the quality of the infrastructure, the legal standing of the developer and the list of completed projects by the developer.
4. RERA Certification of the Property
Real Estate (Regulation & Development) Act has become a breather for property buyers in Mumbai. The motive of the ACT is to protect the home buyers. The ACT provides transparency in project making by making every property RERA registered. You need to look if the home you are interested to buy is from a RERA registered property site in Mumbai or not.
5. Have A Checklist
Make sure you have an exhaustive checklist of all the things you need to go through while looking for a flat in Mumbai. Properties in Mumbai are the most sought after for homebuyers from any part of the country. When you zero in on a flat in Mumbai you need to look for a deal which is transparent and has the correct paperwork. Before you sign the sale deed you need to make sure every document and all the legal framework is in place.
Buying property is a very big step in one’s life and it is important that you do it right. The real estate sector in the city of Mumbai has been undergoing a lot of changes and it has been an uphill task for people to buy property. However, there are a few things that you can do to make this process easier and less daunting. You can save money when buying a property in Mumbai by doing your research, starting early, and looking for properties in the right places. If you follow these tips, you will be able to make a better decision when it comes to real estate in Mumbai.