NRIs Planning to Buy Property in Mumbai – Continued (2)
Get a Real Estate Agent
No, it is not a bad thing to get a real estate agent. Real estate developers have several authorized real estate agents called ‘Channel Partners’. For example we are authorized channel partners for all major developers such as Lodha, L&T Realty, Kalpataru, Rustomjee, Runwal, Wadhwa, Adani, etc. A developer would want you to buy a property only with them, whereas a real estate agent will propose you all the ones that he is channel partners with. Gives you a better scope.
How Much is All This Gonna Cost Me?
Ask for complete pricing from the developer or the real estate agent offering you the property. Make sure you take a complete accounting of the purchase price, including hidden costs. Calculate registration charges, stamp duty, etc. so that you have a complete idea of how much money is actually going to go out of your pocket. Account for the hidden costs and the fine print. Hidden costs would be “Premium” view charges, floor rise, etc.
Negotiate With Your Cheque Book in Hand!
The first question that most NRI property buyers ask is if the developer will negotiate. 9 out of 10 times the developer will reduce the price. However, don’t expect a 50% price drop! You can expect maybe a 3% to 10% reduction in price at most. Be serious! Sit down with the developer ONLY when you have made up your mind. Make sure that you sit down with your cheque book and intend on closing the deal right there and then.
Discounts when you are buying a property in Mumbai depend on several factors. Some of these factors are – the stage of construction, level of inventory, their internal goals, financial stability of the developer, etc. The real estate agent who is their authorized channel partner normally is able to give you the inside scoop. Developers and their channel partner, discuss internally on the closing price of the last deal. On some occasions, the authorized channel partner might be able to give you a better discount. It all depends on the relationship the authorized real estate agent channel partner has with the developer.
What’s my Payment Schedule?
If you are self financed then ask for the payment schedule from the builder. Ensure that when the payment demand comes, the work is actually completed as per the developers demand. Ask your real estate agent or a family member to verify and send you a picture of the current status. A lot of times the demand for payment may come 2-3 weeks in advance.
Can I get Financing?
Lot of builders are offering financing through private as well as nationalized banks. Their projects are pre approved. For NRIs, bank loans are a bit more streamlined. Banks have dedicated branches that cater to NRIs who want to buy property in Mumbai.
Developers tie up with banks to give promotional down payment schemes such as 20:80. This means buy a property with 20% down payment and the balance 80% at possession. Once again read the fine print. Your definition of possession might be different from what they qualify as possession. Some will say balance at the time of “fit out”. Understand what it means by “fit out”. Never the less, there are several options available.
It is a Big Step when you buy property in Mumbai – Make sure you don’t get Buyer’s Remorse!