Investing in Mumbai, one of the first things that come to mind include Real Estate. Which is why given the current property prices of 2019 in Mumbai and the state of Mumbai’s Real Estate there is no better time than now and here’s some of the mistakes a first time Real Estate Investor in Mumbai can make.
As a Real Estate Investor in Mumbai, the simplest way to sum it up is that investing in Real Estate in Mumbai is both an exciting yet tricky endeavor. Be its as a career or just an investment. There are multiple strategies capable of increasing the possibility of making it big with an investment. The reason for this is because it is very possible but requires proper step-wise planning to help your investments and avoid setbacks later for yourself and your client.
As doctors usually say, “prevention is better than cure” so is it in the case of sensible investments. Which is why we’ve compiled a set of simple steps that can help improve your chances of securing your investment.
- Planning, Planning and Planning
Setting up smart Real Estate investment goals is key to having a smart investment strategy. The worst thing to do is go at something just because its too good a deal. Set up a long term vision, look and search for properties that would be in your favor and do your own diligence. Take into consideration prices in regards to 2 BHKs, 3 BHKs or the size of flats of choice, locations like central Mumbai, BKC etc, renovation costs for furnishing the flats, cap rates, ongoing expenses and exit strategies for every property.
- Play the long game
Get rid of the mindset that tells you that your going to get rich fast. Real Estate Investments in Mumbai are meant to be designed as profitable venture for the future so keep in mind to be patient. The amount of time you have to wait is completely dependent on your strategy and market condition. The best way to calculate it is to understand your cash flow through and your “net operating income” AKA NOI. Renting a flat as a part of the strategy is great as it allows for a set monthly income and keeps up the cash flow and also helps you in regards with capital appreciation of your flat over time.
- Thinking small
Thinking small will get you small. Strategize to spend the most you can to make the most thereby improving your sales volume and your rent appreciation.
- Do no overpay for properties
Do your due diligence, if a deal seems too good to be true it may be so because it is. It may turn out that the renovation costs will end up costing you more than you thought. This can cause you to lose more than you thought. It is also important to be an expert in regards to market conditions, property zoning, area knowledge, property/building related issues and also legal agreements to ensure you not paying more than you have to. Remember, Real Estate investments in Mumbai do not happen overnight. Patience and due diligence are your best friends.
- Set up smart exit strategies
As Real Estate investors in Mumbai the simplest exit strategy identified is to either sell or rent the property. This lets most struggling investors to cut your losses before they become difficult to deal with. This is why it is having multiple exit strategies is important based on different possible scenarios. You need to know what will work best for you.
- Don’t work alone
The best ways to go at investments as a Real Estate investor in Mumbai is to hire a professional. A professional can assist you with the knowledge to help ensure that you have made the best choice you can. Quite simply, you cannot expect to handle this all on your own which is why one of the smartest things you can do is simply hire a team to work alongside you.