Real Estate Myths That Home Buyers Should Be Aware Of

01 November 2021

Home-buying is one significant investment in a person’s life, but it is equally complicated. There are ample misconceptions in the buyer’s mind which hamper the decision-making process. The government has been promoting buying a home by introducing various policies that support both real estate companies and buyers. According to a report by India Brand Equity Foundation, the residential real estate segment will contribute 13% to the country’s GDP.

However, with the internet being a handy tool, people tend to rely on statements on any and every platform. This makes the process very difficult. Therefore, it is necessary to understand the difference between truth and a myth when you start searching for your dream home. It is easy to find the best residential complex in India if you take a well-researched decision.

Let’s start with a few major myths that you should be aware of.

Why buy when you can rent?

This myth is the biggest hindrance when you start with your search. People state that buying a home would lead to a burden and block your funds. Mutual funds, stocks, and other investments are considered way better than real estate. This, however, is not true. People who buy a home for self-use save you from all the turmoil of staying on rent. While on the other hand, people buying property for investment enjoy rents for the long term. People owning luxury apartments also enjoy capital appreciation in the long term. It is a wise decision to buy your own house in the initial stage of life since responsibilities and expenses keep increasing as a person grows older. Thus, buying a house is an asset that would always add to your portfolio.

Investment in developed is better than in developing zones

People think that real estate investments are suitable only in metro cities. This notion comes from the fact that these cities are a well-developed network of connectivity, facilities, etc. But you as a buyer should understand that buying a house in a developed city requires heavy investment. So, if you cannot afford to put in a hefty amount, you should consider the developing zones without hesitation. This is because you will see a speedy appreciation in the future in such emerging areas. For example, residential complexes in Rajkot have proved to be a fruitful investment since they are developed effectively by the company and have all possible amenities.

All projects offer the same amenities

One major myth home-buyers have is that all developers having projects in one location tend to offer the same amenities irrespective of the infrastructure and price range. This is not possible since every real estate company has its vision and objective when developing residential property. Therefore, if you choose a reputed builder, you are assured of getting all facilities as promised. So never fall in for marketing tactics where companies promise the best amenities at very low prices. Instead, study and research each project separately and understand the offerings before making a choice.

Investment risk in real estate

There are various investment options in modern times, from traditional fixed deposit schemes to the latest crypto-currency. However, every investment has an associated risk factor. With decreasing interest rates, people are avoiding fixed deposits, while on the other hand, stocks are volatile. In such a situation, real estate emerges as a safe investment option. If you choose your project and builder wisely, you are likely to get the best returns in the future. The government has become vigilant, ensuring that there are no default or delayed construction cases by the company.

You need huge savings to buy your home

There were times when people used to save for several years before thinking of buying their home. This was because the home loan process was tricky. But with the banks making the process buyer-friendly and decreasing interest rates, you do not have to save before buying. You can pay a small percentage of the total cost, and the rest can be raised as a loan. This not only decreases the burden but also helps in the due diligence of the project development. The banks make assured that the builder fulfils all the promises before they release the payment. Therefore, it is a win-win for you.

If you wish to buy a home in a high-end residential complex, you can fulfil your dream with a bit of research and study. Then, you can have a pleasant buying experience and a fantastic home in just a few steps. However, your search ends here if you wish to buy your dream home in the best location with luxury amenities.

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