Mumbai rental: ₹93,940,000 purchase and ₹437,300 monthly rent — sanity check

[LivCedar]

The main constraint is that the rent needs to survive a weak year, not just make the purchase price look reasonable. This would be my first rental: a 5-bed new-build flat in Mumbai costing ₹93,940,000, with projected rent of ₹437,300 a month. On those figures the gross yield is about 5.6%.

I have included periods without a tenant, management cost, day-to-day upkeep and a separate allowance for a substantial repair. What I cannot yet judge is whether the larger drag will come from tenant turnover or from recurring ownership costs such as society charges, insurance and property tax. The building's own reserve position could also shift expenses back to owners.

Would you test the ₹437,300 against achieved rents before deciding what net yield is acceptable? I am less concerned with squeezing out the highest headline return than with knowing which local charge or occupancy risk could turn an apparently sound deal into a poor one.

 

[DeepLane]

The 5.6% arithmetic is fine, but I’d focus first on whether ₹437,300 is an achieved rent or an agent’s expectation. On a 5-bed, even one longer vacancy or a rent reduction matters.

Also clarify who pays recurring society charges, whether there are sinking-fund or major-work contributions beyond your repair reserve, and the actual property-tax and insurance figures. I wouldn’t choose a target net yield until you run those costs plus financing at a higher interest rate. Ask for the building’s budgets and recent charge history, then model a weak first year rather than an average one.