Property investment and home buying is one of the most important financial decisions that people have to make. Most people put in a lot of time, effort and research into the process.
And yet, many homebuyers get misled by myths and erroneous information that float around. Here are six real estate myths you should steer clear of:
1. “Who the seller is doesn’t matter”
Most homebuyers tend to focus on the design, carpet area and features of their flat more than on the antecedents of the person selling the flat. No matter how genuine you think the property is it’s also important to verify the genuineness of the seller.
Related: Should I rent or buy a house?
2. “Buying property in India is very expensive”
Buying a property in India can be expensive, only if your research is not thorough. If you are looking at real estate only for investment, then you should target properties in cities that are relatively cheaper in terms of real estate. Some options you can look at include Jaipur, Pune, Kochi etc.
If you are looking at properties to occupy, then your research should include finding out which areas in your city are cheaper in terms of real estate. For example, if you live in Mumbai then you can look at affordable properties in Navi Mumbai.
Another interesting avenue to explore are Smart Cities. Earlier this year, the government released a list of 20 cities to be made ‘smart’. These cities are thus on the cusp of a real estate boom, since facilities such as healthcare, education, transport, etc. are being invested in. So if you identify one to invest in now, you could find yourself a lot richer just 10-15 years down the line when they are developed.
For example, Boisar- an industrial town on the outskirts of Mumbai, would not have been on a home buyer’s radar up until a few years ago. It was under gram panchayat rule and lacked connectivity to any major metros. However, Boisar is now being connected to Mumbai, Gujarat, and Delhi through railways and roadways. The last decade has also witnessed the creation of over 1,00,000 jobs with companies such as TATA, Raymond and Bombay Rayon setting up shop, as well as the establishment of reputed hospitals and educational institutions. These factors have increased the demand for residential real estate, due to which property prices are on the verge of rising.
3. “I can get a better deal without a real estate agent”
Your search for an apartment becomes so much easier when you choose a reputed real estate agent. He/she will help you shortlist properties faster. And, after knowing what you’re specifically looking for they will be able to help you save money and time. In return, you will have to pay them a certain fixed commission amount or 1-2 month’s rent, but considering the time, money and effort you will save travelling around town trying to review homes on your own, it may be worth it.
4. “I’m buying from a reputed builder so I don’t need everything in writing”
Are you getting what you paid for? How do you know? Even if you’re in talks with a reputed builder there’s a big difference between what builders advertise and what is legally enforceable.
What you like in a marketing brochure may not appeal to you in real life. Make sure any builder promises are put down in writing to avoid problems later.
Related: 4 situations every home owner fears
5. “I don’t need the approved building plan in the purchase agreement”
Yes, the builder may be well known or a friend may have recommended the property to you but at any point don’t let your guard down. Don’t fall for a builder’s promises. Always double-check and don’t hesitate to ask questions. After all, it’s your hard-earned money you’re investing in this property. Construction quality is of paramount importance. Therefore, ask the builder to include details of the raw materials to be used in the purchase agreement. You don’t want to face any leakage problems or other quality issues later.
6. “I shouldn’t verify too much”
Real estate scams are quite frequent and quite possible. So, don’t assume you can’t be cheated. If you’re not careful you could end up buying property from a fake owner possessing fake documents.
There are ways to verify whether the document is an original or a fake and you can also personally visit the property to inspect it.
Unscrupulous builders have been known to disappear leaving investors in the lurch. If a project is getting delayed, make sure you know why.
Real estate is not the ideal investment for all kinds of investors, but once you have settled on buying a home, don’t let these myths hold you back.
"The question isn’t who is going to let me; it’s who is going to stop me"- Ayn Rand -
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