Reasons to Invest in Real Estate in Mumbai

One of the biggest questions about investing in residential or commercial properties is to single out the place where you want to invest. While many cities across India are developing rapidly, Mumbai still manages to hold the interest of investors in the real estate market. Although, the soaring property rates in the city is a hot topic, this mega city of dreams is always under the radar of this sector drawing more investors with its city-wide redevelopment schemes and concepts.

Here we take a quick look at some reasons to invest in Mumbai.

Financial Capital
Mumbai undoubtedly remains the financial hub of the country contributing enormously to the GDP of the nation and also across South Asia. As per Wikipedia, the city currently accounts for 10% of the country’s factory employment and contributes 6.16% of India’s GDP, 40% of foreign trade and 70% of the major transactions happening across the city. Mumbai is headquartering to a number of financial institutions, giant corporate firms and companies and even foreign establishments. The city is home to national and multinational banks offering loan schemes and financial investment options to investors wanting to invest in real estate in Mumbai.

Infrastructure
The quality of infrastructure matters when it comes to making urban real estate investment decisions. Mumbai has an excellent network of roads and flyovers, suburban train network, Mumbai Metro and bus transportation system to get you from one part of city to another in short time. It also has reliable and affordable energy, excellent telecommunications system including high-speed internet. Secondly, Mumbai also has some of the best schools in the country offering education in various fields. The city also boasts of some of the top hospitals across India offering high quality medical and health care 24X7 to locals and international patients. The night life in Mumbai is always bustling and throbbing with some of the best restaurants, bars, cafes and hotels available in different vicinities across the city. If you prefer to have an active, urban and modern lifestyle investing in Mumbai is worth

Bollywood
The presence of Bollywood in the city certainly makes Mumbai a hot spot for property investors. This sector’s market in the city is always on the rise as many B-town celebs make investments across the city splurging their money in high-end residential and commercial properties. Mumbai, the glamour capital of India is also the ‘most preferred zone of investment’ for investors from across the country and globally.

Modern Outlook
With multiple urban development projects happening across the city, Mumbai is the city of future. It is an ideal city to invest especially for those who want to have a second home in the city which can be used in the future. It has a modern and international appeal factor that makes it convenient for NRIs to settle their future back in their home country or to plan it for their kids. With its rapid development plans and modernistic approach, Mumbai has always remained a hot spot for investors looking to expand their property investment portfolio

Investment in Luxury Real Estate

The real estate market always seems to be growing. Even after this ever-burgeoning factor, a typical real estate investor terms the prices of property attractive. In the midst of it, there are many investors who book losses in immovables due to their lack of comprehension about a certain aspect related to the realty market.

If you are looking for investment options in luxury real estate, dig into the following tips on making successful investment –

Analyze the plus points of location – In making your investment fruitful, the location of the property matters a lot. You must not invest in a plot or building just because it is available at low rates. The price of the asset could be low because of a number of factors, which you should analyze well before making the purchase. If expecting some handsome returns, you should judge all the aspects allied to the location. You should invest in a property that is situated at a well-connected, easy-to reside location. Buying property at a location, that has a decent connectivity from the main hubs of the urban and suburban area will be a profitable deal.

View from a long-term perspective – Real estate is an asset that proves to be lucrative if invested and kept well-maintained for a long period. You cannot become rich in just a blink. You need to wait and watch, and the value of your freehold mushrooms. Here is a secret tip: wait for at least one year, before you resell your asset.

Delve into the meaning of leasing – Many a people choose to give their property on lease. If you too are thinking over this, ask the buyer to deposit at least 20 percent of the amount. It will fall in your favor. In case the buyer defaults due to some crisis, they will lose their deposit.

Don’t go too far beyond your state – Avoid making real estate transactions in cities and states that are too far away from you. Choose a place that you can drive to every often. It would be wise to buy real estate in your environs.

Real Estate Property Management

One of the biggest decisions you will make as a landlord is whether you should hire a property management company or not. Many landlords manage properties on their own or with the help of an employee, such as a resident manager. Sometimes it happens that landlords need more help when property issues are complicated. This is when landlords need to seek help of real estate property management companies.

Real estate property management companies can be a huge asset to your company but they don’t come cheap. They deal directly with prospects and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and even pursuing evictions. A good property management company brings its know-how and experience to your property and gives you the peace of mind that comes with knowing your investment is in good hands.

A real estate property management company is an independent contractor and this helps you avoid the hassles of being an employer. Along with the benefits, hiring a real estate property management company also comes with a drawback of being an expensive one. If you are living far from your rental property, it will be difficult for you to handle property issues from afar. Most of the landlords look forward to finding good tenants to maintain their property in good and attractive condition.

On the contrary, there are few landlords who look at their property purely as an investment and are not interested in lending them to any tenants. In this case, the best option is to hire a real estate property management to handle the property and manage the related issues. Even if you enjoy hands-on management, you will run out of time to concentrate on the growth of your business which will put you in a situation to hire help for your property. Hiring help of a real estate property management company is an attractive option if you can afford the fees for the same. While interviewing management companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue.

Should Your Real Estate

A seemingly logical question might be, aren’t all real estate licensees professionals? One would hope so, but how does one distinguish this? A dictionary definition would likely say that professionals of any stripe are those that make a living in a particular trade. In that sense, any licensee actually working in the trade could be considered a professional. But can you afford to leave it at that?

By a more critical standard, real estate professionals are those that truly commit themselves to their trade. Not only do they strive to make a living out of the trade, they spend extra effort assuring competency in the work they do. They find themselves among a fellowship of like-minded people that take exceptional pride in their work. And there are plenty of statistics available that indicate that REALTORS© are far more productive, better servants.

So for a consumer to determine if their prospective agent is a professional, they might begin by asking if the agent is a REALTOR©. REALTORS© are licensed tradesmen that have committed to serve and be bound under a professional code of ethics. Licensees that do not choose to be REALTORS©, choose not to be bound by those high ideals-although surely there are some among the uninitiated that philosophically subscribe to the professional standards of the REALTOR©, they just don’t want to officially commit, for some reason.

Maybe that’s the question to ask. Why is a licensee not a REALTOR©? It’s a fair question, and one that consumers might want to ask, because if consumers become unhappy with the licensee’s work, they have a singular, logical recourse for remedy-through the judicial process, ideally via the office of the state’s real estate commissioner. On the other hand, REALTORS© have a formalized process for addressing grievances though state associations and local boards. At the associations and boards, a consumer may choose to mediate or arbitrate the matter. In such cases, a panel of REALTOR© professionals may be appointed to judge the behavior of the REALTOR© in question, and decide whether that person should be allowed to continue serving in the brotherhood. Then, if the consumer remains unsatisfied that sufficient atonement has been achieved, there is always the court system to fall back on.

Pick the Best Real Estate Agent

For most people, a real estate transaction is one of the biggest financial transactions they will make in their entire life. If you are selling or buying a home, for example, the deal is likely to be in the hundreds of thousands of dollars. With that kind of money at stake, it should go without saying that you want to have good people on your side. That means you should be working with a qualified and experienced real estate agent who will work hard to make sure you are getting a good deal.

Is it possible to act as your own real estate agent when completing a purchase or sale? Sure, it’s possible – but it is usually a bad idea. Most people lack the necessary knowledge of the real estate market, as well as real estate contracts and language, to make sure they are getting a good deal. The cost of hiring an agent is certainly worth it when you consider how much money they can help you save on a purchase (or make on a sale). To pick out a good agent for your next transaction, consider the following tips.

Market Specific

The first thing you want to do is find an agent who is in tune with the current market conditions where you are planning to buy or sell a property. Bringing in an agent from a couple of counties away is usually a bad idea, as they might not have the local knowledge necessary to get you the best deal. Real estate is always changing, so you will be well-served to work with someone who is dealing in your market on a daily basis. Before committing to work with a specific agent, ask them about their familiarity with the market where you will be looking to buy or sell.

Experience is Crucial

Having experience is important in any profession, but it is especially key when it comes to real estate. One of the big advantages of working with an experienced agent is having access to all of the connections they have made over the years. An experienced agent likely has relationships with many other agents in the area, meaning they will be able to cast a wide net in order to track down the right property for you to buy, or the right buyer for a property you have for sale. In addition to connections, an experienced agent also brings knowledge of the negotiating process that could save you thousands in the long run.

Talk to Previous Clients

Your homework won’t be complete until you take the time to talk to at least a couple of the agent’s previous clients. Ask for a list of references and then contact two or three of them to find out more about their experience and level of satisfaction. Real estate is a reputation business, so a good agent will have left a trail of satisfied clients behind them throughout their career.

Are They Tech Savvy?

If you are trying to sell your home, you want to make sure the agent will be able to take full advantage of the online real estate world in order to create a buzz around your property. Take a quick look at the current online listings that the agent has for sale to make sure they are full of quality pictures, detailed information, and more. Since the vast majority of real estate buyers start the process online, you need to make sure your property is going to look great on the web.

Real Estate Marketing

While there are a lot of practical skills involved in the processes required to complete a transaction related to any type of property, there is also a certain amount of creativity that needs to go into the marketing process if you are looking to ensure that your agency stands out from the crowd.

In many ways, real estate marketing can be considered something of an art form. Get it right and you will find you have no trouble attracting offers for the properties you’re working with. Get it wrong, however, and you may find yourself with a lot of angry customers who can’t understand why their properties aren’t attracting the attention they believe they deserve.

You will need a number of creative skills to successfully market a property, so we will look at the three most important ones here.

Photography

More than 90% of house hunters use the web to start their search, which means that the first impression they get of any property is going to be an online listing. If they don’t like what they see, it only takes a click of the mouse to move on to the next one.

That’s why it is important to get the photography right when marketing a property. Nobody wants to buy a house that looks dark and dingy, so understand the importance of proper lighting and framing in all of the shots you take. Every photo should show the house in the best possible light, so anything less than that should be discarded.

Written Copy

So let’s assume that your photos are brilliant and the potential buyer has been enticed into finding out a little bit more about the property. This is where you will need to exhibit a number of written skills to make sure you keep their attention and convince them to communicate with you with a view to actually looking at the property.

Aside from the basics, such as proper spelling and grammar, your listing needs to make the house sound remarkable without being too salesy. Always stay honest, but be sure to accentuate the positives and downplay the negatives. If the house has a feature that is going to prove attractive, make sure it is front and centre in the written copy so that it attracts attention.

Presentation

Now that the advert itself is working its magic, your final step is ensuring that the property itself looks the part before anybody comes to view it. Proper staging of the rooms and exterior can make all of the difference between attracting a serious buyer and having somebody want to walk out as soon as they set foot in the door.

Premium Real Estate in India

Mumbai, the city of dreams, continues to remain the most expensive real estate destination in India despite the sharp slowdown in the country’s housing market. The city continues to receive all the limelight because of its high price and glamorous real estate sector. According to a recent report published by JLL India, real estate in the Mumbai Metropolitan Region (MMR) will continue to be high priced in comparison to its counterparts in other parts of the country like the National Capital Region (NCR), Bangalore and Chennai. Builders are putting forward their 3 BHK Flats in Mumbai for Sale mainly targeted at the HNIs who wish for an extravagant lifestyle in this cinematic landscape.

There are a few reasons why Mumbai is rising as the hotspot of premium real estate in India. Let us discuss these factors in some detail:

Government Policies and Regulations- The first and foremost reason why the Mumbai’s real estate market is so high-priced lies in the policies of its local government. The ready reckoner rate (known as circle rate in NCR) has been continuously escalated by the government of Maharashtra over the past few years. The real estate prices in the city are directly affected by this rate, thus reflected in the high price. On an average, the price of a 2 BHK Apartment for Sale in Mumbai ranges between Rs 1,800 per sq ft and Rs 5,000 per sq ft.

Location- Flanked by the sea on three sides, Mumbai is the only city in India that witnesses a three way growth. Starting from the south, the development pattern moves towards the northern parts of the city. Commerce of the city also flourishes with exports via sea-route.

Scarcity of Land- The demand supply pattern of Economics applies well to the realty market of Mumbai. Since there is scarcity of developable land in the city, it is growing upwards. Skyscrapers mark the future of real estate in Mumbai. At the same time there are significant areas of slums here.

Burgeoning Population- Thousands of people migrate to the cities in search of better job opportunities and a higher standard of life. Mumbai attracts the highest migration because its per capita income is double that of the national average. Bollywood also attracts acting aspirants to try out their luck in the city.

High Standard of Living- As the trend of nuclear families grows in the country, people look forward to owning their home in a city that offers high standard of living. Mumbai is one such destination. People look for a 2 BHK Apartment for Sale in Mumbai at an affordable rate. But the developers are coming up with premium options seeing the high demand.