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The Dependable Guide To Property Purchase in Mumbai

13 min read

Maybe you have moved to Mumbai for a job or are a native to the city. 

Being the financial capital of India, Mumbai lures everyone. The best thing about this city is that no one is an outcast here. If you are ready to toil and sweat a lot, you will find your own place. 

It goes without saying that Mumbai happens to be one of the costliest places to stay. Still, everyone dreams to buy a home in Mumbai because of its unique charm and facilities. The steadily increasing room rent in Mumbai is another reason that induces people to purchase a home. 

As it is hard to get a flat on rent in Mumbai without brokerage, more and more people are now trying to buy homes. 

Maybe you are also looking to buy a home in Mumbai.  Then you have landed on the right page. Scroll down to know what you should do to buy a property in Mumbai.

Decide your budget 

The sky is the limit of spending money for those who have it. Unfortunately, this is not the case for most of the populace. So you have to fix your budget. There are many other costs than the price of the home. 

These include agreement amount, cost of registration, brokerage, legal fees, etc. Consider all of these while you fix the budget. So, you must be sure that you have a contingency fund to meet up these expenses.

Consider the price and the EMI

While there is practically no upper limit of property prices in Mumbai, affordable home prices are available in ranges of 

  • Rs. 15 lakhs to Rs. 25 lakhs
  • Rs. 26 lakhs to Rs. 35 lakhs
  • Rs. 36 lakhs to Rs. 50 lakhs and above. 

And, these depend on the location and size.  Also, consider the EMI amount to avoid a bite that is more than what you can swallow. The usual thumb rule is to go for 40% of your monthly income at the most.  Going for more is sure to cause many hardships.

While doing this exercise you must also consider if buying the home will force you to sacrifice many other priorities. If you guess it will, then you must rethink everything to resolve the issues.

Choose the right locality accordingly

There is no denying that you have to go to the suburbs if you have a limited budget. Choosing the right locality will let you strike a balance between the size of your home and EMI.  Ambernath, Dombivili, Neral, Umroli, Vasai are some of the neighborhoods where you can try.

As some of the suburbs could be far away from the main city, check about connectivity like bus station before you decide to buy.

Get a property agent 

Once you have shortlisted localities for buying homes, look for a property agent. Choose one who knows the locality well and enjoys a good business reputation.  They are the first friend in buying your home. Having good negotiation skills they can make the buying process smooth and easy for you.

Check all legal formalities

Buying a home is a lifetime decision. As such, it is always better to be more cautious.  You must do due diligence to verify

  • The title and ownership
  • Identity of the seller
  • Conversion of the land
  • Permission for use
  • Approval for construction and sanctioned plan
  • Occupancy certificate
  • Status of the taxes
  • If there is any encumbrance

Pay a physical visit

Once you have a clear due diligence report, you must visit the place. This will give you an idea about the property and how to access it. Inquire about the property to the neighboring project. This will let you know if there is any other attribute that may cause a problem. 

If there is any project completed by the same developer, make inquiries about the quality of construction and completion time.

Plan how long you will leave there

Although buying a home is usually treated as a great achievement, it has drawbacks as well. When you buy a home at an early age, you get stuck to the place. This could be a big problem. Who knows that you won’t get a better job in Bangalore or overseas?  

In case you relocate yourself without selling this property you have to pay the EMI and rent as well. The only solution is to give it on rent. As such, you must compare the EMI with the rent available to get relief of the financial burden.

Analyze growth in property price with increases in EMI 

The basic point of any investment is to get returns. If you live in your home, that is okay. Otherwise, you must have financial returns from the property. 

Maybe you have a remote thought of relocating. You should, therefore, consider the growth in the property price and compare with the EMI. This will tell you about the economic viability of the project.

Find a RERA registered project

Subsequent to the Real Estate (Regulation and Development) Act 2016, the Maharashtra government formed the Maharashtra Real Estate Regulatory Authority. This provides many advantages to the buyers like

  • Specifies the carpet area and pricing on that basis
  • Protects against any false promise by the builder
  • Fixing the advance payment to 10%
  • Fixes the interest rate for default of either party
  • Lowers down the risk of builders’ insolvency.
  • Repairing  defects at no extra cost within 5 years
  • Right to withdraw in case of delay 
  • Right to all information about the project
  • Grievance redressing by the State Authority

You can find about the registration of a project by visiting their website. Doing this will take care of your concerns and give great relief.


Buying a home in Mumbai is a big decision in one’s life. As you reach this line, you have everything you ought to know about that. So, what you are waiting for? Start the process immediately and fulfill your long cherished dream.


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