Mumbai, being the commercial capital of the country, is a land of infrastructure development. It is also the land of architectural marvels like the Chhatrapati Shivaji Maharaj Terminus railway station, the Gateway of India, the Bandra-Worli sea-link, the Chhatrapati Shivaji international airport, and the Ambani’s residence, Antilia, to name a few. Due to the ever-increasing population, there is a growing demand of real estate in Mumbai. Owing to the limited availability of land, the builders in Mumbai have been expanding to city suburbs and other districts like Thane, Navi Mumbai, etc.
Let us have a look at why investing in real estate in Mumbai is a smart move.
Better returns on investment
The valuation of property in India tends to grow faster than any other debt instruments. Besides, they are a great source of increasing wealth. Therefore, investing in real estate in the city is a smart choice compared to investing in shares, bonds etc.
Parallel or passive source of income
Real estate properties, whether commercial or residential, are your assets and can serve to contribute to passive income in the form of rent. What’s more is that even rent steadily grows every year.
Increase in net worth
The net worth is evaluated based on the assets one owns. And real estate can be a great investment in the long run owing to the increase in its valuation overtime.
One of the other benefits of investing in real estate is a hedge against inflation in the country. With high inflation, the rental income and property value can increase significantly. Real estate investors, hence, welcome inflation with open arms.
While investing in real estate may seem like a great option of growing on wealth as well as a means of financial security, there are several things that should be kept in mind to make this a smarter choice.
An insightful research on properties to invest
Investing in real estate in Mumbai can be daunting not just because of the huge amount of investment involved but also because of the several options at our disposal. And a careful study of the property as well as the locality is a must before making the investment. A strategically located property can offer higher returns on investment.
Credibility of the builders in Mumbai
As the realm of real estate is prone to frauds, legal conflicts and delays in possession, etc. investments should be made keeping in mind the past record, the projects and credibility of the builders and developers.
Financial viability of investment
Make sure to consult a financial expert and draft out a financial plan before paying the mortgage. This is necessary to ensure that the investment does not lead into a monetary loss.
One would assume that the list consisting of the reasons to invest in real estate in a city like Mumbai would be long or even endless. Well, one could make a really long list, but the right list will be the one where you are given three good reasons, that are good enough for you to change your mind and convince yourself that the move to Mumbai will be ideal.
Here we’ll take a look at why residential property in Mumbai is one of the most sought-after forms of investment:
The place you reside is obviously your topmost priority. It not only is essential in terms of future development, its also important since it’s the place where you will raise your family or live for a good number of years. The best way to learn more about the locality of your new home is simply to ask around the local shops and vendors. They will give you details that you can’t find elsewhere. Details like real estate history of the area etc, can be found by your broker or by just some online research.
While many look at buying homes from the end user perspective, there is a major section of the society that looks at real estate as an investment. In case of the latter, it is important to understand the estimated capital gains one can earn from their real estate investments. Residential projects in Mumbai are a great source of growing your wealth, but even in that case, there are certain projects and certain areas that will give better return on investment as opposed to others. In this case, it is best to do a thorough research before you take the plunge.
When buying a home to reside in, it is important that you consider the travelling time taken from your home to other places of interest. While it is true that you might find a lot of difficulty in finding a home that is close to your place of work, you can always find a place that is well connected via bus, trains or other modes of local transportation. This way, your daily travels will not become a burden and you can enjoy your home even more.
As you would have noticed by now, all the three points are interconnected and most of them have to do with location. Thus, it is of utmost importance that you keep in mind the location of the residential projects in Mumbai you are interested in and then follow through with other important factors.