Real Estate Investors

Professional Tips for Real Estate Investors in Mumbai

Real Estate Investors everyone has had their eyes on the grand prize that is Mumbai real estate ever since they started accumulating wealth. It’s no secret that all the people working in the metropolis dream of becoming landlords and someday owning diverse inventories in the city. However, things don’t become easily possible just because we want them with intensity.

Gathering capital for investment can seem tough for those who haven’t faced the next step. That’s because what comes after accumulating wealth is figuring out which property you’re going to buy. Obviously, depending upon your budget, you can’t expect to buy the first billionaire mansion you see on Altamount Road. At least, not yet.

Maybe if you start investing smartly in properties like 2 bhk flats for sale in Mulund West, studios and 1-2-3-bedroom apartments in BKC, Thane, Powai, etc., you might be able to grow your inventory. Once you know how to assess real estate value, yield profits and how to flip a property, you can be looking at high returns.

So, let’s take a look at some professional tips for real estate investors given by industry experts:

Carefully Set the Budget Aside

The first step towards an investment venture requires capital. However, the most common mistake made here is to consider your full budget as the entirety of your investment.

You can’t expect a property to cost you only the asking price Real Estate Investors. Let’s say you find an amazing flat for sale that the current owner is willing to sell at around 20,00,000. While this may be a plausible figure to base your estimations around, it’s not the total amount that you’ll accrue. And in real estate, the expenditures almost always go above the top. That’s why, for a property that costs around 20,00,000, you need to have at least 25,00,000. This will be necessary to cover registration, taxation, documentation, legal help, etc.

Moreover, you also need to consider the possibility of not receiving Real Estate Investors returns from the property due to various circumstances. For example, having repair and maintenance expenditures piling up can result in situations where your profits are reinvested in your property. That’s why it’s best to have some budget aside for a rainy day.

Research Neighbourhoods

When it comes to researching localities, you need to keep in mind that it’s not just the current situation that you’re assessing. At face value, almost all neighbourhoods in the metropolis stand out with their features and amenities. However, we know that not all properties in a single or various location(s) stand at equal value. As far as appreciation goes, some properties might fare better than others depending upon their demand. Similarly, you can’t expect an area with a high crime rate, distant amenities and facilities, and inaccessible transportation options to appeal to families looking to move in.

Another factor to consider here is future developments. A slum with no substantial land value can become a real estate gold mine as soon as infrastructural projects develop the area. History stands with the fact that developments in the surrounding area always increase the value of the land. 

For properties in the northern and southern districts of the MMR, this fact can be decisive in distinguishing successful from failing investment ventures. An example of this is the steadily progressing flats for sale in Mulund West, Thane, Powai, BKC, and other such areas. With upcoming infrastructure projects due for completion in the next decade, investments will inevitably offer high returns for those who can be patient enough.

Inventory Diversification

It goes without saying that every real estate investor wants to be successful. However, like all other investments, it comes with its own set of risks. This is something that scares people, especially those who have recently tasted rental yields. They immediately decide that since their move in one direction reaped good results, they’ll repeat the process. This is where investors become stagnant and start experiencing a lack of diversity in their portfolios.

Retail investment in residential segment yields only 2 – 3 % where as the commercial spaces/business parks yields 6- 8% annually. If you can wait for some years for bigger returns it is advisable to do a proper research in your city and invest in the residential lands/plots in the emerging localities. Land always appreciate.

If your residential investment venture was a success, it’s okay to go for another one in another neighbourhood. However, sticking with residential investments will cause you to miss out on commercial opportunities. While they may seem complicated, commercial investments have their own benefits and advantages.

Other than the above-mentioned tips, we advise all investors to not invest too much or too miserably. An example of the former can be spending too much on a rental property while for the latter, not investing in repairs at all will only delay inevitable expenditures. Moreover, connect with as many real estate experts, groups, clubs, etc. as you can. This will inevitably help you gain a competitive advantage with the knowledge and information you’ll gain in these circles of Real Estate Investors. 

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Christophe Rude

Christophe Rude

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