The satisfaction and feeling of being a proud owner of a house are like any other feeling in the world. Deciding to buy a house is a big commitment. Real estate in Mumbai is soaring and there is more demand than supply as of now. New real estate projects in Mumbai are coming up, yet finding a property in Mumbai is not so easy. More so, to find a property which suits all your needs is a task. You invest a big chunk of your hard-earned money and hence it is important that you choose a house with care. New residential projects in Mumbai have increased in number, but it is still a tussle to get that ideal house for oneself. Here we list a few economic factors pertaining to home ownership, which you should consider before you take the final decision to buy a house in Mumbai.
1. Debt to Income Ratio
This is one factor which you should look at when you decided on the budget for house buying. A debt to income ratio or DTI is a percentage of your fixed monthly expenses (debts) divided by your gross monthly income. This ratio helps you evaluate how well you can manage your monthly expenses and how much you can afford to spend.
2. Property Tax
When you decide to invest in a real estate property in Mumbai or buy a house, you are bound by property taxes levied by the local government. This is a tax which a homeowner has to pay each year. You need to know everything about property taxes before you sign the dotted line. You can use a property tax calculator and calculate the property tax of the house you are planning to buy. If you do this beforehand, then you get a clear picture of the money you have to spend on taxes.
3. Closing Costs
Whether it is buying luxury flats in Mumbai or any other property, there are many parties involved until you reach the final point of the home sale process. A closing cost is fees charged by mortgage lenders and third-party service providers for documenting, securing and completing the final transaction of a home sale.
4. Home Insurance
Home insurance is something every lender will advise you to take. This insurance helps you protect your house from theft, damage from natural calamities, etc.
The above are some of the top things, which you should consider while buying a house in Mumbai. Real estate developers in Mumbai are coming up with new real estate projects. There are many options for you but the key is to choose the right house which suits your personality and also fits in your budget.