Step By Step Guide to Buying A House in Mumbai

Nicknamed the ‘Populous City’, finding shelter in Mumbai requires one to burn the midnight oil. Over the years, we’ve witnessed real estate rates skyrocket, making owning a house on Island City a strenuous task. However, there has been a streamlining of processes by the authorities, one such example being the RERA ACT. 

With an estimated population of 2 crores, one can imagine the constraints when it comes to the availability of land. Nonetheless, the municipal corporation and state government have green-lit numerous projects, catering to the affordability rates of different strata of society, ranging from studio apartments to 1,2,3 BHKs, and further on. 

Though not an overnight process, a step-by-step guide to buying a house in Mumbai can help.

Step 1. The Motive Behind Purchasing a House

For many of us, purchasing a house may boil down to the availability of funds. Nonetheless, there is always a stimulus behind such kind of decision. Some of the reasons are the following.

• Space constraint: When it comes to living in the country's financial capital, an issue that plagues the Mumbaikar daily is the limited availability of land evident from the imbalance in the supply and demand chain. Over the past decade, there has been a more than 26% decline in home sizes
• A rise in the standard of living: Mumbai has an ever-growing infrastructure, visible from the malls, schools, colleges, and various kinds of real estate. Thus living in comfort isn’t a luxury for only the privileged
• A sense of security: Having your own initials on the nameplate does provide stability, compared to living on rent. One can escape the constant tussles with the landlord while also safeguarding oneself from various kinds of uncertainties

Step 2. Preparing a Budget

One of the major concerns for many potential buyers is the allocation of funds for a house in Mumbai, employing the traditional old methods or using various banking services. There still exists a large part of our population which continues to rely on the saving pool method.

Buying a house in Mumbai is a purchase of a lifetime. Thus there needs to be a lot of thought given before making any sort of initial payments. For those who apply for a home loan, there needs to be a list of things taken into account such as the following.

• Easy monthly Installments
• Down payments
• Credit Scores
• Knowledge of the RBI laws
• The duration of the loan
• Foreseeing Hidden expenses

With the current rise in interest rates, one could deal in a range between 8-13%.

Step 3: Location, Neighbourhood, and Connectivity

Surrounding factors where one resides do impact his or her day-to-day living. Everyone is entitled to a safe and healthy environment to live in. With an area of 603.4 sq. km, Mumbai comprises western, eastern, harbour suburbs, and South Mumbai.

While each location has its posh areas, one needs to account for what suits them the best, given commuting in the city isn’t one of the best experiences. Some of the key factors while selecting a particular neighbourhood, especially for families would be the connectivity to schools, colleges, offices, and recreational facilities.

Step 4: Necessary Documentation and Other Expenses

One of the most crucial factors while making the purchase is having all the necessary documents in hand. A small error could backtrack several steps, leading to a loss of time, money, and energy. Regarding purchasing a flat in Mumbai, below is a list of some of the paperwork to keep ready.

• Sale Deed
• C.C and O.C certificates
• Encumbrance certificate
• Mutation certificate
• NOC certificate
• Building plan

Other documents/expenses include stamp duty, registration charges, brokerage, GST, etc.

Step 5: Resale Value

Given the steep real estate prices, no doubt owning any form of property in Mumbai is an asset. Nevertheless, one needs to know an estimated value of the area of land where he or she resides. 

All said and done, buying a house in Mumbai requires due diligence, with it being a once-in-a-lifetime transaction for the common man.