How Can You Actually Afford a Home in Mumbai?

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All Mumbaikars cherish one dream. That is to buy a home in Mumbai.

Being the financial capital of India, Mumbai happens to be one of the costliest cities to live in. The great thing about Mumbai is that it receives everyone who comes here with aspirations. Due to a steady increase in population, Mumbai real market has shot quite high.

People with enough finances have no problem. They can buy a home anywhere they like. But this is not the case with the larger section of the populace. They work hard for sustenance and long to have a place of their own for raising a family and peaceful retired life.

Demonetization, the introduction of RERA, and re-structuring of GST have stabilized the property market. Still, it is almost beyond the reach of the common people.  Affording a 1BHK flat in Mumbai is the most expensive decision they make in their life. As such, they need to consider many things.

Some FAQ's About Buying a Home

It means that the property has a clear inheritance. There should be no mortgage and no other restriction on the right of the property. It is possible to transfer the ownership through a sale deed.

  • What is a leasehold property?

You have unlimited ownership for a freehold property.  But, the leasehold property gives ownership for a definite period of time that varies from 20 to 99 years.

  • Is conversion from leasehold to freehold beneficial?

Yes.  You become the absolute owner of the property after such conversion. Unlike the leasehold property, you may sell or mortgage a freehold property.  

  • Is RERA registration important?

Yes. All areas of Maharashtra are included in this. It further protects the buyer’s interest.

Let’s Explore the Steps to Help You Afford a Home in Mumbai.

1. Take a Wise Decision

Before you plan to buy a home in Mumbai, be confident about the decision. As this the biggest move in life, you must compare the features and amenities available.  Search on the web to get an idea of the properties available.

2. Get the Right Agent

Getting the right agent is an important step for buying homes. Try to find a trustworthy agent with experience in your preferred localities.  Due to their vast knowledge and negotiation skill, they can do the transaction smoothly.

3.  Find Out the Right Localities

Being an investment hotspot, buying a home in Mumbai is always expensive. The prices of Mumbai homes vary with location and the infrastructure.  While there are options for every price range, you have to focus on the periphery for a budget home.

Top localities in Mumbai have a property rate of Rs 30,000 to 35,000 per square feet.  But you can get a house in an affordable range in the suburbs.  These are available in the price ranges of 15 to 25 lakhs, 25 to 34 lakhs, and 35 to 53 lakhs.

Since these areas are well away from the city, you must consider connectivity and facilities available for making a purchase decision.

4. Check the Reputation of the Developer

There is a definite push by the Government of India for offering more affordable houses. This has helped to boost up the market. As such, the reputed builders and developers are making entries in this arena.  So, don’t be surprised if you find the big bosses offering affordable flats.

While they do not need any credential, you must cross-check the credentials of the other developers.  Opt for a builder who has a track record of quality construction and timely delivery. This will make your buying project smooth.

5. Complete Legal Diligence

While buying a property, you must make sure that the seller or developer has a clear title of the property.  Check the occupancy certificate, membership documents, and safety certificates, if you are buying a flat in a housing society. Also, take legal help to ensure that the property is not mortgaged and scrutinizing the sale agreement and sale deed.

6. You Must Be Sure of How Much You Can Afford

Buying a property involves many other charges besides the basic price of the property. They cover brokerage, legal fees, stamp duty, registration fees, property tax and many more. So you have to consider all these to find out the total cost of the home. 

As you find a home that suits the budget and fulfill requirements, start looking for a bank for a home loan. Always look for a bank with a lower rate of interest. This will entail a lower EMI

7. Inspect the Project Physically

Physical inspection of the project is very vital for buying a home in Mumbai. As you take a drive to the project, you become aware of commuting facilities. Moreover, you will also have an idea of the locality while visiting the project. In case the flat is ready for moving in, you will be able to check if the builder is keeping their promise.

Inspection of the construction site is a must when investing in flats under construction.  It is quite likely that the developer has completed other projects. Visit those sites to have an idea of the quality of the construction. Also, inquire with occupants if it was completed as per schedule.

8. Check the Trend of Property Price

There is no denying that people buy an affordable house to live in. But in view of the current pan-Indian scenario, they may have to relocate to another place. So, you must consider if the rental can cover up the EMI.  You should also check the trend. That is if the price of the property is expected to increase more than the interest. Considering these will make your buying beneficial.

Conclusion

Affording a home in Mumbai becomes easier if you follow the above guidelines.  Buying an apartment is a vital decision as you are responsible for your family. Now that you have everything in front of your eyes, what are you waiting for?  These will ensure you get what you thought.

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