Questions to ask before Investing in Property

While buying a property has always been a dream for almost everyone, only few can afford them. With rising property prices, especially in metropolitan cities like Delhi, Mumbai and others, property investors and home buyers have been on a wait and watch stand. Though the property prices are not coming down soon, you could ask few questions to y0ourself before approaching a real estate agent for property.

• If you have ever thought of investing in real estate in Mumbai, be prepared to pay exorbitant prices. With 1BHK apartments starting at INR 65lac and beyond for a mere 400sq.ft space, things can get quite expensive with registrations, NOC etc.The first question you need to ask yourself before approaching real estate agents in Mumbai is whether you can afford the home loan EMI. Many homebuyers bite off more than can chew and end up jeopardizing their set budget. The home loan EMI should be around 40% of your net income if you can no other on-going loans or else it could put your household budget under pressure. More the EMI, more downsizing you need to do for other goals. Before going for a loan, make sure to have enough room to wiggle I case the interest rates take a turn. Make sure that your loan EMI does not extend your tenure of work and stretch beyond your retirement.
• Like any other product, house buying also has other ancillary costs. While real estate developers in Mumbai Harper greatly on the amenities they offer along with the apartment, they rarely tell you at the outset the additional costs involved. He price advertised is usually the base price of the property excluding the add-ons. Many builders will slip in the charges for amenities on offer that you thought were free when you sit with your cheque book. Some other real estate developers in Mumbai will keep certain charges hidden and tucking them in fine print. Charges like preferential location surcharge, gym or club membership, parking lot etc. are revealed much later many a times. Apart from these, registration charges, stamp duty and others account for another 7-8% of the overall property price. Make sure to factor all these prices before jumping on the wagon.
• High property prices have pushed the real estate in Mumbai as a good breeding ground for rental flats. While a 2bhk flat in Mumbai can cost anywhere from INR 1.2 crore and beyond, taking the same place on rent for about INNR 40,000-50,000 per month would save the family a lot of amount. An empirical analysis of whether you should buy a home or live on rent is imperative if you are on a tight budget. Many online real estate portals offer rent or buy calculators where you can account for several things and make your decision 

These are just some of the questions that you can ask yourself before contacting real estate agents in Mumbai for investing in property.