How to decide if a property is actually worth buying?
The answer is often more complicated than you think.
Here are some questions you might want to ask, if you want to know what you can buy, and when you can expect to see it.1.
Is it a rental property?
In the past, the answer was a resounding “yes”.
But nowadays, there is a lot of data showing that the average value of residential properties is around Rs 50 lakh.
The average rent of a one-bedroom flat in Mumbai is around 6,500 rupees (US$1,200), and an apartment in Mumbai can run to over 10,000 rupees ($2,600).
You will need to check the rent and assess its value, and if it is more than the median price in your locality.
A one-bed flat in the city has a monthly rent of Rs 8,500 ($1,000), a one bedroom flat in a rural area has a rent of around 6-8 lakh rupees and an 2-bedroom in Mumbai goes for over 10 lakh rupee ($3,100).2.
What’s the cost of buying the property?
The first step is to look at the cost for the property.
Rents of residential property in Mumbai and in other cities are generally higher than that of private rental properties.
If you want a one room flat in Chennai, you will need Rs 10,500 (US $1,300) a month, whereas if you are in Mumbai, you need Rs 15,000 ($2) a day.3.
What are the expenses associated with the property, and how much will I have to pay?
If the property is for a family, then it will probably cost around 20,000 to 20,500 per month for rent, utilities and other expenses, and you will also have to cover other maintenance.
In Mumbai, it will cost around 10,400 rupees a month ($1.30) for the same services.4.
How much will the property cost?
Depending on the size of the property and the type of housing, the price will be anywhere between around 10 lakh to 25 lakh ruens ($3-7 million) a year, depending on the location and the area of the building.
For example, a one million-square-metre (about 16,000-square feet) building with two-bedroom flats in the Mumbai suburb of Vellore would cost about Rs 9,000 (US:$1.50) a week for rent and utilities.
However, in other areas, such as rural areas, there might be less, and it could cost more, depending the size and type of the dwelling.
Can I live in it?
Many properties have open-plan living spaces.
Some of these are not affordable, but it is worth looking into.
You might want a place for your kids to hang out, for your partner to get away from the office, for a room for your children to stay, or a bed for your grandchild.
Many of these properties have a kitchen and bathrooms in the bedrooms, so you can eat and rest in peace.
It is also advisable to check if there is adequate heating and water supply.
What is the condition of the place?
Apart from the normal maintenance, the other maintenance that is necessary for a home is maintaining the property properly.
This includes, among other things, a water supply, security and maintenance of the doors and windows.
These will need a maintenance fee that will vary from place to place, and will usually be around 2,000 – 3,000 Rupees ($0.70-1.40) per month depending on what type of property you are buying.
Is it worth renting the property to a family?
There are some properties that have a family unit attached, but the cost is much higher.
When it comes to renting a property, you should be prepared to pay more than you would if you were buying the same property for yourself.
Consider the income and assets of your prospective landlord, and then check the current property prices.
Do I have a contract for the lease?
You might have to go through an agent for the first couple of years, but after that, it is a free-for-all.
Your prospective landlord will have to work out an agreement with the owner.
There are many different agreements that you can have with your prospective landlords, and these can vary depending on your local area.
Once you have an agreement signed with the prospective landlord and have the money to pay the agent, you can make an offer to the property’s owner for the rental fee.
How much will it cost to buy the property now?
A prospective buyer may be willing to