Buying a home is an important decision, and a huge financial and emotional commitment. It is often the single biggest investment that an individual makes in his/her life. The pressure to get it right is immense as even a small uninformed or careless decision can end up costing someone heavily.
Regardless of the home buyer looking for a property in Delhi-NCR, Kolkata, Mumbai or anywhere in India, extra cautiousness is expected while going through this daunting and cumbersome process.
During the initial research process, a home buyer will find a plethora of information and options. It is up to them to filter the data and separate the truth from myths.
So, whether you are on the lookout for 2 or 3 BHK apartments in BT Road in North Kolkata or MG Road in Bengaluru, the following are some of the misconceptions that you need to protect yourself from.
Myth: Thanks To RERA, Homebuyers Can Invest In Any Project without Any Worry
RERA or The Real Estate Regulation Act was passed in 2016, providing great relief to home buyers. As this act regulated real estate sales and protected the rights of home buyers, RERA was hailed as the saviour.
However, several home buyers falsely assume that RERA implementation means all properties are protected under the Act. But, the truth is the RERA only applies to those projects that are larger than 500 sq.m and with more than 8 housing units. Moreover, the real estate builder has to be registered with the board of RERA.
So, before you take the plunge, make sure that the project is registered with your state’s regulator. The RERA Act has made it mandatory for all residential, as well as, commercial projects where the land is more than 500 sq.m or there are over 8 apartments to register with the regulator before launch.
Myth: Only the Rich Can Afford To Buy a Home
This is one of the biggest myths in the real estate sector. A lot of people think that purchasing a 2 BHK or 3 BHK apartment is a good decision, but only for those who are economically stable and rich.
However, this is not the reality.
Home buyers can take home loans from financial institutes like, banks. Most of the home loans pay approximately 80% of the total property value. So, home buyers have to pay about 20% of the property value. The loan can be repaid in the form of adjustable and flexible EMIs.
Additionally, the government of India has implement Pradhan Mantri Awas Yojana (PMAY) since 25th June, 2015. PMAY is an initiative to provide affordable housing to the urban poor and individuals or families with an annual income of up to 12 lakh can benefit from this.
Thanks to the PMAY scheme, property investment has become much more affordable and easier.
Myth: Renting Is Much More Affordable Than Buying A Home
This is another one of the biggest myths regarding real estate that people still believe.
If have been researching about home buying or real estate investment, you would have come across an article or two stating that renting an apartment is a much more affordable choice than purchasing it. But, this is not the truth at all.
Let’s assume that you are renting a property in Kolkata, your average rent for a furnished 3 BHK apartment in the city center will range from Rs. 25,000 to Rs. 30,000. The rental is without factoring the rental prices increasing year-on-year.
The Economic Times shows that the prices of rental properties are increasing across the country, and at times, the increase can be as high as 26.2%. But, unlike rental prices, the EMI stays the same for the entire loan tenure.
So, initially you might feel burdened as the EMI has to be paid from your salary, the burden is going to significantly get reduced after a few years. Moreover, the property you buy is going to appreciate over the years.
Finally, it is important to remember that after the tenure of the loan is over, you become the owner of an apartment that will be yours forever. This is a huge benefit, especially after your retirement when you are not going to get regular pay-cheques to pay your rent.
Myth: The Property Developer Is Not Important While Buying a Home
Choosing a property developer in Kolkata or anywhere in the country who is not customer-centric can be a cause of great frustration for home buyers. Builders who are not looking to please customers usually resort to cost cutting measures, such as fitting homes with inferior quality fittings.
Therefore, it is important that home buyers only choose a property developer that they can trust. The developer should have a stellar reputation for delivering good quality, lavish projects within the promised timelines.
So, do not just go for the fancy pictures or the glitz and the glamour that the builder is choosing to show to you. Do your due diligence and find out if the developer can be trusted. Check out the previous projects of the developer and make an informed decision.
Now that you know the myths and realities surrounding home buying, you can make a decision based on understanding and knowledge. Yes, you might have to take a home loan to fulfil your dream of owning a 2 BHK or 3 BHK flat, but the apartment is going to be a home to you and your future generations. The peace of mind that comes with owning a home is priceless.
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Your work is so full of useful information.
Useful Content. Thanks a lot for the info!
Great work !! Thank a lot Buddy!!