Investing in real estate, particularly for the first time, can be an exciting experience. However, making a smart financial decision of this proportion can require time, research, and expert guidance.
So let us take a look at some of the most important factors that first-time home buyers should consider.
1. Clear Financial Goals
Buying a property is undoubtedly one of the major financial decisions for any investor. To be a successful investor, you need to be clear about your financial goals and what you need from your real estate investment. If it is a residential property you are looking to acquire, do you intend to occupy it and save on rentals, or do you plan to lease/rent the apartment and pay off the EMI, creating an appreciating asset in the process? The first-time home buyer must be clear about the ROI expectations before embarking on this journey.
2. Financing and Funding
Securing the necessary finances and funding is the next step in your real estate investment journey. It is important to understand what a first-time home buyer loan is and check your eligibility. The first thing a bank or NBFC will check at the time of application is your credit score. As a first-time home buyer, you need to save up at least 20% of the property value for a down payment and build a robust credit score through healthy financial habits. Getting the EMI and interest rate that suits your finances may take some research and smart negotiations with the lender.
3. Location Is King
The most important question you will need to answer as a first-time home buyer in Mumbai is “Where?” Some of the old residential localities, such as neighbourhoods in SoBo, may be very expensive but could bring assured and attractive rental income. Upcoming neighbourhoods along the Thane – Mulund – Ghatkopar belt or even Navi Mumbai can offer a much greater appreciation in asset value, making these very wise investments. Your homebuying journey starts with a clear understanding of the location and the neighbourhood you wish to buy into.
4. Broker-Less Buying
One of the biggest mistakes that first-time buyers make at this point is reaching out to one or perhaps more brokers. In Mumbai, brokers charge a hefty fee to help you identify new projects or properties, but, in most cases, they do not help verify the developers or offer any personalised help. Blox can help you buy RERA-registered properties directly listed by top developers in Mumbai without charging any brokerage.
5. Decision, Decisions, Decisions
As any real estate investor will tell you, homebuying is all about making a series of decisions. Once you settle on the location, you will need to decide on the budget, if you want a studio apartment or a 2/3 BHK, what facilities and amenities you are looking for, and if the locality is suited to you and your family’s social needs. When you sign up on Blox, your relationship manager will help you find the perfect project that will suit all your needs.
6. Documentation Woes
One of the greatest challenges most home buyers face, particularly first-time investors, is verifying the title and permits and managing the documentation. Blox has simplified the process for homebuyers in Mumbai, and the expert guidance of the relationship manager will help you find your way through the documentation and registration.
Mumbai’s real estate landscape is the most dynamic and vibrant compared to elsewhere in the country. Real estate prices are indeed higher than in other cities, but the returns on investment and earnings are just as high. With the help of Blox’s technology and the personalised guidance of relationship managers, you can navigate this journey without any stress or hassles.
