trueindian25

Hello,

I am happy to find this forum and I would really appreciate any inputs.

I am looking to buy Residential property in Borivali. We recently shortlisted a bunglow near Gorai. It requires a lot of renovation (apprx cost of Renovation: 50 lacs)

the only good point is that it has 5 Bedrooms and is a large property (compared to Mumbai standards). The owner is willing to sell it for 1.75 Crore... Crazy price for sure..... We can afford 70 lacs on our own but we would still need to take a loan for a crore... We already have a flat in Yogi Nagar but selling it is a last option.

1) Do you think, its a wise decision to take a loan for 1 crore? It would require us to pay an EMI of 1 lakh, which we are sure we can manage for next 2 years (still I am in US) but not sure after that.... since it depends on job I get in India... though my dad has a steady income too...

2) Do you guys expect residential property prices to come down any time soon?

3) How is the resale value of such bunglows compared to apartments in high rises?

4) Home loans are set to increase after April 1st,... Would that affect home prices in any way? Or will we end up missing the boat?

Kimmig

1 Lakhs EMI .. hmm .. a quick qs before I answer ur query .. What do you do in the US? any particular reason for returning after 2 years?? which part of the US do you live in currently?

jia001

My opinion:
1) 1 Crore in loan is a big amount. You will be taking a big risk but then again it depends on what back-up you got. If I were you I would rather buy something with the 70 lacs and not take the loan (or maybe take atmost 20-30 lakhs).
2) I think the prices are at the peak and should not rise for next 1 to 1 1/2 years.
3) I do not have a clue. But you will own land which is very valuable.
4) I think the rate rise will just make sure that the real estate prices do not go up unabated.

A good location can make up for a bigger house. Owning a bungalow is great value but then just make sure you do not overstretch yourself. If you can, it will definitely be a good buy than an appartment.

If you are looking for 2nd home or for investment, I quite like the Tata Housing Prive in lonavala :-). However it will be 3 crores instead of your 2.25 crores plan.

boldm28

its not if you want to .. but if you are going to get 1crore loan .. banks are now a days very strict on lending .. even your US pay roll and tax returns would not be sufficient to get you a loan of 1 crore ..mya be it is just me .. but i have yet to see any individual get a 1 crore loan .. may be a combined loan

shivkumar2

Hi Mate

If u take my opinion, Land price in Mumbai will never go down so if you have the resources to buy, just go ahead. Just make sure that you have value for money..Real estate in mumbai is always the safest bet..Just my advise/opinion.

Kimmig

Can you compare what you will get for a similar price in Chicago? 1 Cr ~ 1 Lakh EMI .. about 2500 USD monthly .. a fairly stiff amount even by US standards

trueindian25

You will be surprised to know... I will get a condo or 1 bedroom apt near lake shore drive (comparable to Marine Drive) for that amount... larger apt/bunglow if i move to suburbs... The real estate prices are selling at discount for 30-40% off highs in 2006/07.... Only worth for a long term investment of 5 yrs, given the state of US economy..

We all know that prices in Mumbai are crazy but then we do not have much options too They might even come down after 6 months but over the long term (20 years), they are bound to go up and up....

razer

Couple of things in your favour:

1. You are buying a bungalow, the value of the plot is the real clincher here.

2. You have an existing apartment, value of which is about 80% of the loan you seek

Couple of things you can consider:

1. Loan against property. Trouble is, they will give you only 60-70% of existing value, which is well below your requirement.

2. Renting your existing apartment, this could go a long way in reducing your monthly EMI load.

If Rs 100,000 is less than 40% of our average monthly income, then you could technically afford it. If it's closer to 50% or more, then you should have a chat with yourself.

bhaktik12

If you have such a descent budget , why not shift to Andheri west or in some descent area?

Gorai is not a place to put crores of money..that too on a old property..
with loan. If you have 2 crores idle in ur account, then buy it. I suggest..
but ur own call