Adding a realistic insurance estimate has made the return on this Mumbai flat less comfortable than I expected. The 1-bed new-build costs ₹52,600,000 and is projected to rent for ₹226,400 a month, giving roughly 5.2% gross before expenses.
I have budgeted for empty months, management, ordinary repairs and tenant changes, but property tax and recurring building charges still need firmer figures. I am also stress-testing the cash flow at several financing costs rather than relying on the gross percentage.
What local charge or transaction expense is commonly missed in a Mumbai rental calculation? If the net return remains worthwhile with a vacancy allowance and higher borrowing costs, the deal may still work. If it depends on full occupancy and cheap finance, I would rather reject it.
I have budgeted for empty months, management, ordinary repairs and tenant changes, but property tax and recurring building charges still need firmer figures. I am also stress-testing the cash flow at several financing costs rather than relying on the gross percentage.
What local charge or transaction expense is commonly missed in a Mumbai rental calculation? If the net return remains worthwhile with a vacancy allowance and higher borrowing costs, the deal may still work. If it depends on full occupancy and cheap finance, I would rather reject it.