5 Myths and Facts of Purchasing Residential properties in Mumbai

Property investment is a most crucial decision where you have to do a lot of research of the real estate market and devote maximum time for this purpose. It's the best way to earn a lot of money, but at the same time be ready to face some risk. Following are certain myths and facts of buying property in Thane and other parts of Mumbai.

  

Myth: Real estate investment involves lot of risk.

Fact: Any type of investment involves a little amount of risk. As of today, real estate market faces great fluctuations because of the decrease in demand, increase in property rates and overall delayed projects. Before investing in new projects in Mumbra or any other place you have to know the risk involved and there are chances of earning more profit if you invest for a longer term.

Myth: A decision of buying property must depend upon the market conditions.

Fact: The fact is that buying property in Lower Parel or elsewhere doesn't entirely depend on market conditions but also on the financial stability of the investor. Such an important decision must be taken only when you can pay the amount personally or by taking loan, able to repay the EMI amount regularly. In advance you have to evaluate your present income, assets and liabilities which includes insurance, other investments and loans, number of years left for retirement. A financial planner can help you out in this matter.

Myth: Intentionally the housing project is delayed by builder.

Fact: Some investors do believe that the builders in Mumbai intentionally delays the housing project to gain excess profit. But it is not completely true. A renowned builder will never take that risk, as he has to maintain his goodwill in the real estate market and delayed project means increase in total cost of the project for which he has to bear extra loss. Sometimes all legal work with regard to construction like land approval, construction plan sanction, occupancy certificate and many more documents takes time.

Myth: Investment in real estate is always profitable.

Fact:  It's a fact that the rates of residential property in Wadala and other places in Mumbai is rapidly increasing and you can reap huge profits in the long run. But sometimes due to certain reasons there is fluctuations in the real estate market and the property rates seems to be constant leading to loss. But this is a temporary phase.

Myth: Renowned person always deliver the best

Fact: Many small builders have come up with excellent residential projects and have fulfilled their commitments on time. Whereas there are some top builders in Mumbai who were not successful in completing their projects due to certain reasons. So, it's not always necessary that renowned builders deliver the best.

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