The majority of us will come to a time in our life when we decide to buy a home for ourselves. When you get to this point, you will need to conduct a lot of study on the home-buying process and all it includes. Thus, in this blog, you will get a list of facts separated from common misconceptions regarding the home-buying process in India. Buying a property is an essential procedure that should be well explored to prevent being misled; that’s why you need to know all the myths and facts before buying any property.
So, the first myth is that all the projects are covered under RERA. The Real Estate Regulation Act (RERA) was enacted in India in 2016 and provided significant assistance to homebuyers. It not only guarantees that real estate sales are regulated, but it also safeguards the rights of house buyers. However, one common misunderstanding regarding RERA is that it protects all properties. It’s important to remember that RERA only applies to projects with a total size of 500 square metres or more or with eight or more units. A builder must also be registered with the RERA board to be RERA compliant.
The second myth is that renting a property is better than buying one. So, the current millennial mindset may feel that renting is preferable to owning because buying implies being saddled with EMIs for the next 30 years; you should keep in mind that when you buy a home, you become the property owner once the debts are paid off. It is yours for the rest of your life. This is a significant benefit, especially when it comes to retirement. Furthermore, while renting a home may appear to be a good deal at first, it will not provide a return on investment, and even if one plans to buy the house in the future, the wage increase will not necessarily keep pace with the rate of inflation.
The next myth that needs to be busted is that Tier 1 cities are preferable to investing in real estate. Many people assumed that investing in real estate in metro cities provided a better return on investment regarding guaranteed rental income and higher appreciation; the trend now suggests that investing in tier-III cities is the more futuristic option. Tier-II and III cities have a greater chance of growing, assuring a favourable return on investment in the future. In addition, the government’s intentions to transform more tier II and III towns into smart cities will increase the value of the area in the future.
The next myth in this list is that under-construction homes are cheaper than ready-to-move-in flats. However, many homebuyers who have purchased under-construction houses can attest that it was not the best move they’ve ever made since their deliveries were delayed and their funds were stranded. As a result, it appears that under-construction projects are not a great choice in the current climate. There is always a risk associated with such projects since no one knows when the delivery will be finished. Furthermore, the builder may fail to deliver on their promises, leaving you unsatisfied. What you see is what you get when it comes to ready-to-move-in homes. Furthermore, ready-to-move-in houses are exempt from GST, making them more appealing and affordable.
The last myth in the list of myths is that the subvention schemes provided by the government will help in cost reduction in future. However, property developers come up with creative plans to get buyers to invest in under-construction buildings. Subsidies are a misleading technique to entice and attract customers. It’s merely a ploy to entice more property buyers by claiming that they won’t have to pay an EMI until they take possession of the apartment. However, not everything appears to be as it seems. Subsidies bind you to a project for a more extended period, with no reduction in the total EMI you pay to the banks. It may appear to be the answer to all of your financial troubles at first, but it will result in lower discounts than traditional construction-linked or down payment programmes.
So, after reading all the myths and their facts, you might have understood that everything you read is not the truth. It would be best if you always get into the roots of myths to know whether they are true or not.