We all set certain goals in our lives and strive hard towards achieving them. But one of the most important goalsfor any individual is to buy a home. Acquiring a home is a major commitment simply because of the huge investment it demands. Which is why you need to be triply sure that you’re bagging the best deal, that too at the best time. Looking at the rapid fluctuations in the real- estate market in Mumbai, it is quite rare to find a risk-free scenario for property investment.Nevertheless, there are some easy-to-read signs mentioned below which will help you decide whether you should proceed with your decision of buying a 1BHK or 2BHK flat in Mumbai:
- Do you have enough money to pay the down payment? If you have all the money in hand to pay for your new home, then you are among the lucky ones. However, most people consider taking a home loan to buy their dream house, for which they need a sizeable down payment. Typically, you’ll need to arrange for at least 20% of the home loan amount and amassing that kind of money can be quite challenging for most. Ensure that you have sufficient funds in your account to pay for the down payment before investing in a 2BHK or 1BHK in Mumbai.
- Can you afford your monthly installments? You need to carefully re-visit your monthly expenses and analyze whether you have the capacity to pay off your monthly installments before investing in your dream house in Wadala or other popular residential locations. Having a higher income is safe, but having a higher debt is a risky scenario.
- Have you carried out an inventory check?Getting an idea about the number of apartments for sale in Mumbai in your desired area will help you understand whether it’s a good time to invest in a house. If most of the flats have been sitting on the market for more than six months, then it’s an indication that the market is slow and the prices are fine. But, if properties are getting snapped up quickly, then you’re most likely in the seller’s market, and the prices could rise up anytime.
- What’s the current interest rate? Just like property prices, the interest rates on home loans also keep fluctuating. Watch out for when the lenders offer you a fairly low-interest rate.
As you can see, you need to analyze your budget and market conditions before you take the plunge. Though it may be tempting to go beyond your budget to buy your dream home, in the longrun, it could prove to be burdensome.