NRIs Planning to Buy Property in Mumbai – Read This Now!
Non Resident Indians (NRIs) are an integral part of Mumbai’s real estate market. Over the years foreign exchange rates have improved against the Rupee. This has boosted NRI capacity to buy property in Mumbai. Moreover, NRIs always had the inclination to buy property in Mumbai. They have seen the phenomenal growth and improvement in Mumbai’s real estate market from the 1990’s. They realize that with time it will get more and more difficult to buy property in Mumbai. It is this urgency and the improved returns, has made an NRI buy a property in Mumbai. Before you jump into Mumbai real estate, there are certain questions that an NRI property buyer should consider.
Park it? Flip it? Use It?
Do you have left over money that you do not know what to do? Do you have discretionary income? Do you want to park your funds somewhere safe? Are you planning to invest so that you can flip the property once it’s ready. Make your returns and run away! Or are you planning to retire into your dream home once you have saved enough money to retire?
As an NRI, these are all important factors. You have decide your purpose to buy property before you even start looking. For example, you wish to buy and lease it out. You need to know the rental returns on residential properties is less than 2%. It is the lowest yield you will get anywhere in the WORLD!
Where to buy property in Mumbai?
The first question that pops up in an NRI’s mind is “Where do I buy a property in Mumbai?” Most NRIs think of the premier suburbs of Mumbai. Some say South Bombay. Some say Central Mumbai is best for investment. None of the answers are right. The best place to buy a property in Mumbai for an NRI is right next to family and friends. They will be there to watch over your property. They will be excellent care takers. More importantly they will always be honest and straight forward with you.
Do Your Research!
You need to understand what is offered. Attend real estate trade shows in your country. A lot of developers exhibit in these real estate trade shows. It is a great place to meet them and understand the projects. You can speak to them face to face about all the projects that they have to offer. Do a follow up visit to their office when you are in Mumbai. You obviously will do a site visit. Understand where the project is located and the surrounding neighborhood. If you are planning to buy the property within your neighborhood, then drive around the neighborhood. Things might have changed from the time you left.
If you are not in the position to attend trade shows, then ask for e-brochures. These are easily available via email. Do not get glamored by the brochures! Read between the marketing. Pay more attention to the property features, common as well as internal amenities that the developer is offering.