When you decide to buy a home, many factors you assume to be true because others believed in them. However, the fact is that several so-called facts are myths that people follow without and authenticity. It is always better to understand the difference between facts and myths.
Here are vital myths that you must be aware of.
Myth 1: All projects are covered under RERA
RERAhas brought some transparency in India’s real estate market, which now every
home buyer is relying upon. Remember that all projects are not included under RERA. The minimum of 500 square meter units is the benchmark for any project to be under RERA, which is now mandatory. It is the builder who should register the project to be RERA compliant.
Myth 2: RERA has made it safer to the buyer an ongoing project now
Before RERA was launched, there were many defaulters of projects. So, home buyers preferred ready-to-move properties to avoid such issues. With the RERA kickoff, builders are now more focused on completing the ongoing projects first. However, several states still haven’t mandated it yet. So, the presence of RERA is almost nil in many places.
Myth 3: Launch of subvention schemes reduced cost
Subvention plans, where no-EMI-till-possession is in the limelight, may make you feel a great deal as you do not pay the interest/EMI till the possession. In such plans, discounts availability is low. All-in-all you still pay the entire EMI amount as per the loan amount as the principal amount won’t reduce until the actual EMIs starts.
Myth 4: Metro cities are the best places for investment
You may believe that metro cities or Tier 1 cities are the best when it comes to real estate investment. The reason could be that rental income is comparatively high. However, the experts say that emerging areas, such as Tier 2 and Tier 3 places are better attractive options. Tier 1 cities are more expensive to invest. Besides, there is not much scope for further growth and development after a saturation that these places may have achieved. Tier 2 and Tier 3 cities show promising growth and better investment plans.
Myth 5: Renting is a better option than buying
This has always been a tricky point. You can decide on this based on the timeframe and your preference. If you have a plan to live in your current city forever, then it is always wiser to pay an EMI than your monthly rent.
Myth 6: Real estate agents are not of any help
Think on larger aspect where an agent has a strong knowledge of areas and properties, providing you multiple options. They can help to negotiate the price as well.