Buying a home is the dream of many. However, when it comes to achieving it people are strangely wary about fears and concerns that are largely inconsequential. Let’s try and bust 5 home buying myths that confuse the home buyers.
You Need to Be Rich to Invest in Real Estate
Nothing can be farther from the truth. People often reach such conclusions based on property prices in urbanized destinations. The truth however is that India is still a growing country with several untapped markets to explore. This throws up exciting options for every budget category. All that is required is thorough research and more involvement.
Real Estate Investment is Risky
Well, simply put it is not! Every investment comes with its own set of risks. However, as the stakes are high in real estate people become overly cautious. The trick here is to educate yourself about the risks involved and tread cautiously but confidently.
Renting is better than Buying
Another perceived risk does not have any basis. Think of it the rent rates keep on increasing every year and you continue to cough up money on dormant investment which would yield you nothing. Your own house, on the other hand, would create for you long-term rental revenue or minimize your rent in the short term. You also stand to gain from long-term capital growth.
Investment in Big Cities Alone is Beneficial
No, investment in smaller towns has its advantages. Though investment in metro cities offers numerous benefits, the rate of appreciation in metro areas is very slow. However, Tier-2 and Tier-3 cities offer cheaper rates and a faster rate of appreciation. Investment here would help you gain from the appreciation of the property over time.
20% Down Payment is a Must
This used to be the case. There was a time when banks asked for a 20% down payment for an 80% mortgage. However, with changing times the banking sector has also become more accommodating. Moreover, one can also pledge his other property as collateral and avail of the much-needed down-payment amount. Availing personal loan to arrange the down payment is also an option that can be explored.
Trust SMC Realty to help you find your dream house at the least possible rates and from the top developers of the country. A click here can solve all your hassles.
