Myths About Buying Home: Must Avoid Misbelief
If you are planning to buy a home anywhere, then please be aware of some myths that have burgeoned in the real estate market which must be avoidable.
Purchasing a home is likely to be the largest investment you will make in your lifetime, yet it is riddled with myths and misunderstandings.
Our misconceptions about purchasing a home are numerous, ranging from having a set “appropriate age” to financing procedures.
It is critical to clarify any doubts you may have about purchasing a house before making a purchase. We busted the top 10 house purchasing misconceptions so you may have a stress-free, pleasant home buying experience.
Myth #1: Amenities offered are the same in every property
The facilities you receive throughout your ownership are solely based on the builder you select.
On the surface, all properties appear to have the same facilities, such as a 24-hour backup generator/inverter, lifts, common lighting, piped gas line, gym, swimming pool, and so on.
On closer investigation, though, you’ll notice that certain homes outperform others in terms of quality and the variety of amenities offered.
Myth #2: Investing in real estate is very risky
If that’s the case, what constitutes a safe investment: stocks, mutual funds, bank deposits, gold, and commodities?
The truth is that every investment class has its own set of dangers but since the stakes are so high in the real estate business, individuals are prone to being overly cautious and delaying choices, which may be dangerous. You should be aware of the dangers involved in any investment and take calculated risks
Myth #3: Renting a house is better than buying one
One of the most common misconceptions about house ownership is that renting is better than buying one.
Rental rates are rising constantly these days with prices sometimes reaching up to 26.2%. The rent you pay on a dormant investment yields no profits.
A house, on the other hand, may either create long-term rental revenue or help decrease rent in the short term. Homebuyers can also benefit from long-term capital growth
Myth 4: RERA applies to all projects across the nation.
The Real Estate Regulation and Development Act was introduced in 2016. With standards for builders and clear instructions for house purchasers, it provided a sense of discipline to the country’s real estate market.
RERA provided reassurance to homebuyers by providing a safety net on which they could rely.
However, it is a lesser-known truth that RERA only applies to developments with a total area of 500 square metres and with over eight or more housing units. A builder must also be registered with the RERA board to be RERA compliant.
Myth #5: You must make a 20% down payment
Even though banks used to require a 20% down payment for an 80% mortgage, times have changed. The banking sector has grown considerably more adaptable in recent years.
You can use another property you possess as collateral to acquire the needed down-payment cash or you may also apply for and receive a personal loan to help with the down payment
Myth #6: Homes under construction are less expensive
Though under construction homes appear to be less expensive than ready-to-move-in homes at first glance, there are several hidden fees associated with purchasing an under-construction home.
Investing in a home that is still under construction means paying rent for a longer period and risking building delays. There’s also the possibility that the builder won’t supply all of the facilities they promised.
Myth #7: Only investments in major cities are worthwhile
Investing in a metropolitan city does have a number of benefits. The advantages of investing in a tier-1 city include convenience, connection, and closeness to the job.
However, the buyer bears the brunt of the expense. The rate of appreciation in metro areas is also very slow.
It’s worth noting that Tier-2 and Tier-3 cities, on the other hand, have cheaper prices and a faster rate of appreciation. People that invest in micro markets or developing markets gain from the appreciation of their property over time.
For example: Most of them believe that real estate investment is only worthwhile in the major cities in Kerala like Kochi, Thrissur, Calicut etc.
But the real fact is that you can find immense investment opportunities in other places across Kerala, especially those places like Kanjikuzhy.
You can find reputed apartments for sale in Kanjikuzhy. Sometime later, expect Kanjikuzhy, an important town in Kottayam will emerge as the major real estate investment place for investors across India.
Myth #8: Get the biggest and most expensive house you can afford.
Just because you have the financial means or are qualified for a larger loan doesn’t imply you have to buy the largest and most expensive house you find.
It’s a good idea to assess your present requirements before making a purchasing choice. This is especially true for prospective investors. A smaller home in a tier-2 city may yield more returns than a large property in a metro
Myth #9: If the advertisements look good, the builder should be credible too!
Every real estate endeavour includes marketing and advertising. Don’t be swayed by the quality of the promos and incentives. Before making any selections, take your time and do a thorough research about the builder.
Myth #10: Only the rich can afford to invest in real estate
This is a very common myth that people have formed as a result of reading and hearing about property prices in already urbanized places.
The reality is that India is still a growing country with many new cities to build. The possibilities are limitless, regardless of budget. All you have to do now is conduct more research and get more involved.
Buying a home is everyone’s lifelong dream. Don’t let these myths keep you away from fulfilling this cherished dream of yours!
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Every buyer deserves to have a positive and satisfying experience when purchasing a home. With these beliefs debunked, we wish you a pleasant experience with buying your dream home!