The #1 Due Diligence Tip: Check Your Builder's Lender & Why 18% Interest is a RED FLAG
Description
Anupam Gupta and Vishal Bhargava dive deep into selecting the right property. Vishal explains why apartments should have a minimum of 650 sq ft carpet area for a 2BHK and warns against the deceit of sample flats (no doors, small beds). They expose the Amenity Illusion (swimming pools are "item numbers") and the low quality of construction from branded developers, who often prioritize timely delivery over quality. They discuss Bombay's enduring strength (waterfront, 24/7 energy) versus the "race to the bottom" in Gurgaon, and the extreme tenant profiling happening in markets like Bangalore. Don't fall for the "inventory of choice" fear—there is always supply, so Don't Rush! #MumbaiRealEstate #PropertySelection #BuilderQuality
Takeaways-
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1. Rule of 35 & 5-20-30-40: Buy a house only after 35, following the 5x annual income, 20-year loan max, 30% down payment, 40% EMI limit rules.
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2. Location vs. Address: Prioritize a good Location (e.g., Dharavi connectivity) over a vanity Address (Pali Hill), as location eventually becomes the address.
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3. Builder Due Diligence: Check the builder's delivery history and the interest rate their lender charges to assess risk.
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4. Property Specs: Aim for a minimum 650 sq ft carpet area for a 2BHK and beware of deceptive sample flat tricks (small beds, no doors).
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5. Investment Strategy: For aggressive investment, bet on migration to convert a "bad address" (good location) into a "respectable address."
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6. Small Ticket Investment: REITs are preferred over Fractional Ownership due to liquidity, despite REITs offering less asset-specific focus.
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