Mumbai 2-bed at ₹119.8m with ₹783,900 monthly rent — does it hold up?

[QuietCedar]

I am torn between screening this condo by net yield now and treating the rent evidence as the first hurdle. The property is a Mumbai 2-bed priced at ₹119,800,000, with projected rent of ₹783,900 per month and a headline gross yield near 7.9%. The building looks sound, but regulation and recurring ownership costs could change the result materially.

My model has separate allowances for vacancy, management, ordinary upkeep and a major repair. Before deciding whether the return is adequate, I want to verify the rental figure and then replace broad allowances with actual property tax, insurance and building-charge figures. If the rent is well supported, which of those costs or tenant-turnover expenses tends to upset an otherwise plausible model? Financing sensitivity is the next stage rather than an assumption built into the headline yield.

 

[writesAndFinch]

The first line I’d stress-test is building or society charges, including the possibility of work that falls outside your routine repair reserve. I’d also separate physical repairs from turnover costs: brokerage, cleaning, repainting and any rent-free gap can arrive together. Calculate yield on the full cash invested, not just ₹119,800,000, and confirm whether property tax or any recurring charges are being assumed by the landlord.

 

[wall.calm]

How firm is the ₹783,900 figure? Is it supported by a current lease or merely an asking-rent estimate, and does it include parking, furnishings or building charges? A small change there could matter more than refining the insurance estimate. I’d want comparable signed rents and the present tenant’s payment history before debating an acceptable net yield.

 

[PlainStory]

Financing could decide this before the target yield does. The specific concern is whether debt payments leave enough monthly room when rent falls below ₹783,900 or several turnover costs arrive together.

I would keep the return calculation, but add three cash-flow columns: supported rent with ordinary vacancy, a lower-rent case, and a turnover year including brokerage, repairs and an empty period. Show property tax, insurance, management and building charges as separate lines. If all three remain workable under the proposed loan terms, then debate the required yield; if the stressed case turns cash flow sharply negative, either reduce the debt, negotiate the price or pass.