Hello folks,

Im new to this forum, and have spent the last few days reading the invaluable treasure of information and opinions here. So firstly, thanks VERY MUCH for all your advices and help. This is such a great forum.

Im thinking of buying for investment a 2 BHK in Central Mumbai, somewhere with good connectivity to office areas, preferably an under construction property by a reputed builder so that I can get a lower rate and pay off the instalments easily.

Could you please opine on 1) my investment strategy: is it a sound idea? 2) ANY tips that come to your mind? 3) Any good projects that you know are coming up?

I'd greatly appreciate your valuable time.

best regards
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  • Budget 2-2.5 crores, Assuming VAT 1%, Registration-5% , Service Tax 2.3%, parking plus club plus society 10L , boils down to 2.2 cror -1.75 crore for the base house.Assuming a 1200 built sqf 2BHK (Carpet 850) , you would need builder quotes of 15,000 to 18,400 per sqft (built up). In new constructions , this would get you BKC (Dheeraj had a big ads all over the place for some flat priced at 14.5K), Also Dheeraj views Chembur, Hiranandani Maitri park, kalpataru Aura Gk-par, Godrej (new project starting in Feb) at Vikhroli , mahindra splendour (bhandup), Lodha spa living (MIDC)

    Sorry to say that, but even your gigantic budget would be squeezed in lower Parel as rates are between 18-22k. Redevelopment projects with smaller builders in Dadar etc is another option.


    Regarding investment
    Rentals
    Max rents in these houses should be 60-70K where you target salaried people earning more than 3L a month.(Not many ppl like these here i guess)
    Appreciation:
    God only knows , but all research reports point to forthcoming sluggishness as around 7000 luxury flats(near 5 crores) are coming up in parel) and if you count 300 bureaucrats , 500 MLAs , 200 policemen and say 1000 NRI bakras and some 500 -1000 local bakras would be able to buy this. Also with these prices , second sales should be illquid.
    Important: go only for reputed builders as with the impending liquidity crisis, smaller builders would cause delays as you r looking at under-construction only

    One question for you,
    whats your profile (IT , banker etc) as the amount as $500k is a lot of money unless you have lots of black.
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  • One question for you,
    whats your profile (IT , banker etc) as the amount as $500k is a lot of money unless you have lots of black.

    People have a habit of thinking about corruption and black money.
    Some people make genuine white money.
    BE, IIM bankers working in London make £100k+ p.a.
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  • Strategy is good, but maybe timing is not.. Just wait till the festival season to see if there are any softening in price.. Prices are not going anywhere..

    Mee 2 a lil curious on what you do?
    :)

    Originally Posted by sumitmehta82
    Hello folks,

    Im new to this forum, and have spent the last few days reading the invaluable treasure of information and opinions here. So firstly, thanks VERY MUCH for all your advices and help. This is such a great forum.

    Im thinking of buying for investment a 2 BHK in Central Mumbai, somewhere with good connectivity to office areas, preferably an under construction property by a reputed builder so that I can get a lower rate and pay off the instalments easily.

    Could you please opine on 1) my investment strategy: is it a sound idea? 2) ANY tips that come to your mind? 3) Any good projects that you know are coming up?

    I'd greatly appreciate your valuable time.

    best regards
    CommentQuote
  • "In Central Mumbai, for example, which is Prabhadevi, Worli and Parel, where you are going to see some 6000-7000 apartments coming up in the next two or three years. All of these apartments are valued more than Rs 4-5 crore. Now the question is, is there enough buying power to absorb 7000 apartments in the region of Rs 5-crore plus and going up to actually Rs 15 crore? We do feel that there is going to be some kind of a resistance at these kind of high prices and some of these segments might suffer."
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  • go in for the builders who have there own land and good hollding capacity. or ur money will be locked up for a longer time as the sales may dip due to high price
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  • There was an article in Mumbai Mirror few days back about some builder who is going to build 1BHK's in Mahim for 40 lakh and in Andheri for 30 Lakh. Don't really remember all the details and I think it was from some new builder. But, if you do end up getting what is being promised it will be a great investment.
    CommentQuote
  • Originally Posted by jadhav_ravi
    People have a habit of thinking about corruption and black money.
    Some people make genuine white money.
    BE, IIM bankers working in London make £100k+ p.a.


    Yeah , but key question is
    1. how many ppl like this (BE, iim +ib) and 2. why do they want to waste money here..no smart i-banker would invest in a dump like mumbai as they would prefer kensington etc.

    And after 52% tax and security and £10k rent and other lifestyle expenses, even the cream types wud have hardly £20k cash which is 15-20L .
    The whole point is that prices are crazy .For this rates , I guess some can get some good place in london...
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