Introduction
Buying real estate is a significant decision that requires careful consideration. However, there are several common myths that often mislead prospective buyers and hinder their decision-making process. In this blog post, we will debunk these myths and provide valuable insights to help you make informed choices when purchasing real estate.
Myth 1: All residential projects come under RERA
RERA, the Real Estate (Regulation and Development) Act of 2016, has increased the accountability of builders and ensured buyer protection. However, it is important to note that not all real estate projects are covered by RERA. The act only applies to projects with an area of 500 sq. metres or more or those with eight or more units. Before buying a property, always check if the project is RERA registered to safeguard your interests.
Myth 2: Subvention plans lead to greater savings
Many homebuyers believe that subvention plans, which offer no EMI till possession, help them save significantly. However, these plans may not always result in greater savings. Real estate developers often use possession-linked plans to keep buyers engaged with the under-construction project for a longer period. The discounts offered in these plans are usually lower compared to down payment or construction-linked payment plans. Additionally, buyers end up paying the entire EMI amount, as the principal amount does not decrease until actual EMIs begin. It is important to carefully analyze subvention plans before opting for them.
Myth 3: Investing in metro cities is always the best option
Contrary to popular belief, real estate investments in metro cities or Tier 1 cities may not always be the most profitable. While rental incomes might be higher in these cities, property prices are also substantially higher compared to Tier 2 and 3 cities. Investing in Tier 2 and 3 cities or micro markets on the outskirts of major cities can offer more attractive and affordable options. These areas have the potential for future growth and development, which can lead to greater appreciation in property values.
Myth 4: Skipping brokers/agents is the best approach
Many people try to avoid real estate brokers and agents while purchasing a property. However, it is not always wise to do so. Opting for a reputed online property brokerage can provide valuable benefits. These platforms have tie-ups with developers, enabling them to negotiate prices and offer special discounts to buyers. They also provide comprehensive project information, assistance with site visits, financing options, and guidance from industry experts. By utilizing online property portals, you can make more informed decisions for the long term.
Myth 5: Renting is always better than buying real estate
Another common myth is that renting a property is always a better option than buying. However, the decision between renting and buying depends on individual circumstances. If you frequently move between cities due to your profession, renting may be more suitable for you. On the other hand, if you plan to settle in a particular city for a significant period, buying a property can be a wise investment. Homeownership allows you to build an asset that appreciates in value over time, providing stability and financial security for the future.
FAQs
1. Are all residential projects covered by RERA?
No, RERA only covers projects that are 500 sq. metres or more in area or those with eight or more units. It is essential to verify if a project is RERA registered before making a purchase.
2. Do subvention plans result in greater savings?
While subvention plans may seem attractive, they may not always lead to greater savings. Buyers end up paying the entire EMI amount, and the discounts offered are usually lower than other payment plans.
3. Should I only invest in metro cities?
Investing in metro cities may not always be the best option. Tier 2 and 3 cities or micro markets on the outskirts of major cities can offer more affordable options and higher potential for future growth.
4. Can skipping brokers/agents benefit me?
No, opting for a reputed online property brokerage can provide valuable benefits such as negotiating prices, obtaining special discounts, and receiving expert guidance throughout the buying process.
5. Is renting always better than buying real estate?
The decision between renting and buying depends on your personal circumstances. If you frequently move between cities, renting may be more suitable. However, if you plan to settle in a particular location for a long time, buying can be a wise investment for future financial security.
Conclusion
It is important to separate fact from fiction when it comes to buying real estate. By debunking common myths, we hope to empower you to make informed decisions based on your unique circumstances and needs. Remember to conduct thorough research, seek professional help, and consider all factors before making a real estate purchase. Don’t let myths cloud your judgment; trust your instincts and make choices that align with your long-term goals.
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