Everyone has dreamt of owning a house of their own. The feeling of satisfaction and accomplishment that comes along with is like no other feeling in the world. Deciding to buy a house is a commitment; even more so in big cities like Mumbai. Mumbai being the financial capital of India has caused the migrants from all over the country to come and settle in Mumbai. The real estate prices in Mumbai are rising by the day and there is more demand than supply currently. New real estate projects are popping up around the city daily yet finding a house in the city remains a difficult feat. It’s even tougher to find a flat that has all the bells and whistles you are looking for. You risk all your life savings and to purchase the house of your dreams and great care should be taken when you choose the flat to purchase. It is a battle and a half to find the house that you want even with the increasing number of residential projects around the city. We suggest you buy your next flat in Khar. Khar is the next big suburb to emerge in Mumbai; it has excellent connectivity with the city with all facilities one could ask for like school, mall, local market, public transport, hospital, banks and ATM. Flats on Khar west have a peaceful quiet neighborhood with greenery. Here are a few economic factors if you are considering buying a flat in Khar.
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Property tax
When you purchase a flat in Khar you have to pay property tax levied by the local government on the property. Property tax is a recurring tax that needs to be paid yearly. Property taxes depend on the size of a flat that you own which means 2 BHK flats in Khar would be cheaper than 3 or 4BHK flats in Khar. Age and gender of the owner could also get you some discount as women and senior citizens have to pay less tax on property. You should do your research before buying the flat use tax calculator to have a clear picture on how much you would spend on tax; doing this helps you have a clear picture on true expenditure for the flat down the line.
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Insurance
When buying a flat in Khar make sure to insure your property. Most of the lenders/agents would suggest you get home insurance, home insurance will protect from damages to property, fire, theft and natural disasters. Although beneficial it is still a cost added to the total you spend and a cost that you must not skip.
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LoansÂ
Before you buy a flat in Khar you should make sure you are financially ready to take on the debt which means you are financially fit and stable. Make sure you have your credit history well-built and the process of getting the loan will be as smooth as silk. Try to pay your equated monthly installments (EMI’s) on your other debit and credit card at least a year before you plan on taking out the loan. This will improve your credit score. Do not make big purchases before you apply for home loans as doing so will reflect poorly on your credit history. You can add a co-applicant which will give you higher lending capabilities for a bigger house. If you are buying a resale property make sure to have all the legal paperwork like an agreement to sell (ATS) in place and ready as it helps the process of getting loans faster. Similarly, if the property is under construction get agreement and approved plan. You must check your Credit Information Bureau of India Ltd (CIBIL) score and you won’t be approved for a loan with CIBIL score below 700. This might help first-time buyers to save themselves of the process that is most tiring and hard in owning a flat.
Read also: 5 Exciting and Expansive Home DIY Projects
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Closing costs
While buying a flat in Khar there are many parties involved from when you step in to buy the flat till the time of possession. A closing cost is a cost charged by mortgage lenders third party services for documentation, securing and final transaction on the flat.Â
Above are some quick financial guidelines to purchase your dream flat in Khar, Khar has a new real estate project popping up daily and has a large catalog of flats for sale on the reselling market. There are many options you could choose from but choosing the right flat that fits your budget and your need is a must. You can safeguard your financial future and still own a flat with little to no strain on your bank balance if you are looking at your expenses and savings. A few wise financial decisions will save you big headaches later on and you can enjoy the feeling of being a landlord/ landlady to the fullest.
