Buying a home is an important decision, and a huge financial and emotional commitment. It is often the largest single investment a person makes in their life. The pressure to get it right is immense because even a small uninformed or careless decision can cost someone.
Regardless of a home buyer looking for a property in Delhi-NCR, Kolkata, Mumbai or anywhere in India, extra care is required while going through this daunting and complicated process.
During the initial research process, home buyers will find a wealth of information and options. It is up to them to sift through the data and separate truth from myth.
So, whether you are looking for a 2 or 3 BHK apartment on BT Road in North Kolkata or MG Road in Bengaluru, here are some misconceptions you need to protect against.
Myth: Thanks to RERA Home Buyers Can Invest In Any Project Without Worries
RERA or Real Estate Regulatory Act passed in 2016, providing great relief to home buyers. Because these laws regulate the sale of real estate and protect the rights of homebuyers, RERA is hailed as a lifesaver.
However, some home buyers wrongly assume that implementing RERA means all properties are covered by the Act. However, in reality, RERA only applies to projects that are more than 500 m2 in area and have more than 8 housing units. Especially real estate builders must be registered with the RERA administrator.
So before you take the plunge, make sure the project is registered with your state regulator. The RERA law has made it mandatory for all residential projects, as well as commercial projects with a land area of more than 500 square meters or there are more than 8 apartments to register with the regulator before being launched.
Myth: Only the rich can afford to buy a house
This is one of the biggest myths in the real estate sector. Many people think that buying a Apartment 2 BHK or 3 BHK is a good decision, but only for those who are economically stable and wealthy.
However, this is not the case.
Home buyers can take home loans from financial institutions such as banks. Most home loans pay around 80% of the total property value. So, home buyers have to pay about 20% of the property value. Loans can be repaid in the form of an adjustable and flexible EMI.
In addition, the Indian government has implemented 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 it.
Thanks to the PMAY scheme, property investment is much more affordable and easy.
Myth: Renting Is Much More Affordable Than Buying a House
This is one of the biggest myths about real estate that people still believe.
If you’ve researched home buying or real estate investing, you’ll find an article or two suggesting that renting an apartment is a much more affordable option than buying it. However, this is not the truth at all.
Suppose 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 Rp. 30,000. The rental does not take into account the rising rental prices from year to year.
The Economic Times points out that rental property prices are increasing across the country, and at times, the increases can be as high as 26.2%. However, unlike the rental price, the EMI remains the same for the entire loan term.
So while you may initially feel the burden of having to pay EMI out of your salary, the burden will reduce significantly after a few years. Plus, the property you buy will be valued over the years.
Finally, it is important to remember that once the loan term is over, you become the owner of the apartment which will be yours forever. This is a huge benefit, especially after you retire when you won’t be getting regular paychecks to pay your rent.
Myth: Property Developers Don’t Matter When Buying a Home
Choosing a property developer in Kolkata or anywhere in the country that is not customer-centric can be a major cause of frustration for homebuyers. Builders who don’t want to please customers usually take cost-cutting measures, such as fitting the home with low-quality fixtures.
Therefore, it is important that home buyers only choose property developers which they can trust. The developer must have an outstanding reputation for delivering good quality, luxury projects within the promised timeline.
So don’t just pick fancy pictures or the glitz and glam that the creators chose to show you. Do due diligence and find out if the developer can be trusted. View the developer’s past projects and make an informed decision.
Now that you know the myths and facts about buying a home, you can make an informed and informed decision. Yes, you may have to take out a home loan to fulfill your dream of owning a 2 BHK or 3 BHK apartment, but it will be a home for you and for generations to come. The peace of mind that comes with owning a home is priceless.
