Investing in realestate is a long, tedious and costly affair. The down payment itself can rip your entire savings off.And a good part of your monthly income can be disbursed in paying off your monthly installments, often for 10-20 years. Which is why the safest alternative to investing in luxury properties in Mumbaiis to invest in its pre-launch phase and reduce the financial burden. As a real-estate investor, you can save up to almost 30% on the price of the property, if you make an investment in the initial stages.
Booking a property in the pre-launch phase involves risks because you are investing in a product that is yet to be manufactured.So, to combat the risks associated with the real-estate investment, here are 5 success mantras that you should consider before purchasing a flat in any of the residential projects in Mumbai.
- Pick the right developers:It’s always best to go by the top real estate companies in Mumbai because they carry a good reputation and standing. This will ensure that the money you invest does not go down the drain.
- Verify the developer’s track record: Always do a thorough scrutiny of the developer’s past projects. This will help you learn about any delays in his delivery commitments, or any undesirable, interim changes in the project design or specifications. Only proceed with developers with a fairly clean track record.
- Choose quick possession projects: The ideal project to invest in would be the one which will be completed in a span of 1.5 – 2 years from the time of buying. Beyond 2 years, you’re falling into a riskier scenario which requires due diligence.
- Ensure penalty for changes or delayed delivery: The agreement should include a clause that imposes a penalty on the developer in case of delayed possession or significant changes in the project design.
- Thorough scrutiny of the purchase agreement: Take sufficient time to verify the contents of the purchase agreement. Be aware of several key factors, such as the actual layout and size of the property, the additional benefits or amenities that will be included, etc.This will help you defend yourself in case of any discrepancies at the time of handover.
If you follow the above-mentioned mantras carefully, you can be sure of great savings when investing in a property in its pre-launch phase. So be diligent and invest right.