Real estate investment is a crucial task when somebody doesn’t have much knowledge about the industry. One should take the decision very wisely because an enormous monetary investment is required in this process. Every home buyer thinks there are few certainties about the process that cannot be examined because so many people believe and follow them. Sometimes these chunks of knowledge could be the myths that people do not verify and follow blindly.
In this article, we share such widely prevalent myths about real estate investment that you should know to make a wise decision regarding your property. These myths could be correct for distinct buyers depending on their unique circumstances and preferences, but when taken as a whole, it could be misleading.
1- Real Estate Investment Involves High Risk.
All financial investments are subject to market risk, be it stocks, mutual funds, gold, etc. However, real estate investment involves low risk from other ventures because of its good demand and supply. When we compare it with the stock market, which is unstable, and uncertainty is very high. But on the other hand, the real estate industry shows certainty; if you did proper market research, you could invest with no fear and no risk. Also, real estate investment gives you the security of having a place to live, and good returns in the long run.
2- RERA Incorporates All Projects
RERA (Real Estate Regulation & Development Act) was commenced in 2016 to safeguard the interest of home buyers. It is a misconception that many people believe RERA covers all projects. But, RERA only incorporates projects with 500 square meters and above area or plan with eight apartments. Therefore, you should not depend on RERA and do adequate market research before finalizing the property.
3- Renting Is Better Than Buying
It has been observed that many potential homebuyers opt for renting as an affordable option. It could be true in some cases, but renting a property is a temporary solution that will not give you ROI. Real estate investment is a performing asset that either gives you a roof for the family or can create rental income and long term capital appreciation. A person should plan to buy a home as early as possible because, at the later stage of life, financial responsibilities increases, but the salary may not. Hence, it becomes difficult to buy a home. It is a sound decision to buy a house and pay monthly EMIs instead of paying rent.
4- Youngsters Can’t Make Investment
This is a big myth that youngsters should not invest in real estate. Many people consider that it is a hard row to hoe while investing in real estate. But the truth is, one should start investing in real estate as early as possible. As already mentioned above, responsibilities grow with age; hence, you will get more time to work while at a young age and have many more years for loan repayment. Furthermore, when your career thrives, EMIs won’t hamper your savings. Even in the present time, many financial institutions offer low-interest rates to youngsters.
5- Brand Doesn’t Matter
It is a myth that the brand doesn’t matter; however, before finalizing a property, it is always recommended to check past and present records of the builder. Many people only concentrate on the price of the properties and overlook the brand image. For instance, no matter what price and how cheaper you have bought a property if you don’t get its possession timely. Therefore, if you wish to get better returns on real estate investment, then keep your focus on the overall image of the builder and always pick the brand which holds a strong position in the market with flawless records. You can find the best properties of trustworthy builders on Investors Clinic website www.investorsclinic.in
6- Real Estate Consultant Aren’t Helpful
Real Estate Agent or consultant plays multiple roles by finding the best suitable among various properties to hand over the property’s keys. They also provide the best discounts on the price that you can’t get directly from the builders. Furthermore, a consultant suggests the various properties in your budget while builders only convince on their property because they don’t have multiple property options.
Many people believe that real estate consultant charges the brokerage and hide many things. But the picture is simply reversed! A good consultant like Investors Clinic does not charge anything from buyers, but they also have in-depth knowledge of every property and give you the right advice. Hence, they suggest the best alternatives to property buyers in their budget.
7- Real Estate Is Not a Cup of Tea for the Common Men
It is a common myth among the people that real estate investment has only made for a rich person. Still, the fact is that a moderate person or common people can also invest in this sector quite easily without hampering their savings. Many builders are now offering properties in different slabs like affordable housing, executive apartments, studios, and more. Moreover, the government is also encouraging people by giving subsidy on housing projects under the PMAY. Many financing companies are providing loans at low interest. If you are under the low-income slab with a good credit score, you will be eligible for a small debt. Hence, you can easily afford a 1BHK or 2BHK apartment with PMAY benefits.
These are some myths that people believe blindly and make the wrong judgment while investing in a property. But the fact is real estate investment is effortless in the present time, and with the help of a best property advisor, you can buy the best property at the right price with good returns. To find the best property in your budget and to meet your real estate goals this year, call Investors Clinic on 8010101010 or stop by our office, we would happily chat about your next move!
Investors Clinic knows every buyer has a unique need. We do our best to make sure that your goals and needs get addressed, and you find a place that is a good fit for you and your family.