Effects of Demonetization On Mumbai Properties!

Prime Minister Narendra Modi on 8th November announced the demonetization of Rs 500 and Rs 1000 notes. All the sectors were shaken up, but the real estate sector which thrives on cash transaction was the worst hit. This demonetization exercise taken by the Indian authority is the third time demonetization has taken place in India if we consider the one that took place just before independence in 1946. Well, this is too early to accurately gauge the depth of the shakeup this Demonetization has caused, but the impact on the real estate sector are clearly visible. Mumbai’s Real Estate, which is India’s most expensive property market, the real estate transactions have almost come to a halt.

Mumbai’s Real Estate will definitely be affected by demonetization as real estate segment traditionally has seen a very high involvement of black money and cash transaction. However, cash transactions mostly happen in the secondary sales market, so in other words, The secondary or the resale market will take a big hit. The high-end segment and luxury segment of residential real estate will also see a major impact from this demonetization since this is another area where a lot of payment takes place in cash. The banking sectors and financial channels have accounted for only a small part of all transactions in the luxury sector space. Thus, this demonetization move is likely to result in dipping of property prices of the luxury property, as the sellers struggle to offload properties to generate liquidity. Luxury home buyers will now have a wider bandwidth of options to choose from now, after demonetization.

Mumbai Property Hub is an online portal that helps you to find that right property for you! and now after demonetization, this portal will help you find properties in Mumbai which are least affected by Demonetization!

Do’s and Don’ts While Buying Your Dream Home!

Firstly, Congratulations! you are finally on your way to buy that dream abode. As any new homeowner will tell you, the experience of buying a home is an overwhelming one. Making an investment in buying a property is considered as a major financial move, so before you invest a huge chunk of your hard earned money make sure you are aware of the benefits it will bring to you in the future. We at Mumbai Property Hub, help you out with the Do’s and Don’ts while buying a property in Mumbai.

Do’s and Don’ts while buying a property in Mumbai:

1) Do hire a real estate agent: Well, hiring a real estate agent is not always necessary while buying a property but, it is highly recommended if you are first timers. Having someone who has a fair knowledge of the real estate market leading you throughout the process could take a huge weight off your shoulders.

2) Do check the Location: Location plays a crucial role when it comes to buying a property in Mumbai. The farther you are from your workplace, the more you will end up spending on your commute. Buying a property which is just a walk away from your workplace will make your daily commute short, less expensive and will also save a lot of time. Mumbai being a large city, finding a location that is well connected to the rest of the city and also close to all public transport facilities is very difficult but, with tremendous infrastructure development and metro coming up buying a property in Ghatkopar is preferred by a lot of people. Also with the upcoming Metro line 2, a lot of people are preferring areas like Malad, Kandivali and Borivali as this Metro line 2 will make the life of daily commuters comfortable.

3) Do consider your potential tenants: If you are someone who is making an investment to lease it out then you should consider locations that most people find appealing. The point to be kept in mind is that it’s not your home, but potential tenants. Find a home in an area which is close to public transport, corporate offices, schools and colleges, as it is preferred by a lot of people.

4) Don’t get overwhelmed: It’s totally normal to feel excited especially when you are a first time home buyer. However, it is best to stay calm and measured during the process of negotiation to avoid paying too much of amount or missing out on an opportunity to negotiate more favourable purchase conditions. Be it your first time or second property investment, the most important thing to be kept in mind is whether or not it will offer you a good ROI, if not, just leave.