Myths About Investing In Indian Real Estate- Debunked

Is India’s real estate market a bubble waiting to burst? Or it is just another sparkling growth story of the highest order? There are many such theories attached to this dynamic and somewhat diverse sector and here’s busting ten of the top myths: 

Real estate prices will surely rise in the future

Bull markets are always built around one particular myth and people tend to have this strong perception relating to the upward movement of prices over time. This often spurs rapid buying decisions. In reality, there is no land shortage and prices have been known to fall in areas with stagnant demand in metros like Mumbai, Kolkata and Bangalore. 

A home always fetches quick returns 

Many of us believe that real estate is the sole path to wealth but the real return on real estate investments is not something which will cheer you up quickly! Returns are fluctuating and may depend on multiple circumstances. If you are looking for quick returns, invest in market instruments instead. 

A home is a veritable piggy bank 

People used to treat a home as a piggy bank earlier owing to low interest rates and cooperation from banks. Equity could earlier help you tap into credit lines but banks are now more skeptical about lending against equity, especially your immovable asset after the recession. 

The bigger the down payment, the better 

A smaller down payment may actually benefit you with regard to availing a lower rate of interest since less than 15-20% automatically entails buying insurance. Low down payments also help you snap up properties right away without waiting to save enough. 

Value for money is possible only in the suburbs 

Another common myth, life in the suburbs may cost you more than you think in spite of the cheaper prices of apartments and land. This includes transportation and related costs of amenities which can often equal your savings on the property. 

Redecoration makes for a good investment proposition

Remodeling will never really get you as much as you think. It depends on your own selling skills and the kind of buyer you get. With the tight situation in contemporary times, buyers never really want to fork out much for newer additions. 

Go for the first possible discounts 

Often, realtor groups and companies offer luring discounts which may seem tempting at first. However, this often makes us buy rapidly owing to an expectancy of price rise in the future. However, developers often use this tactic to push sell a property. 

Rentals may not always be a good option 

In spite of the overwhelming fear of rentals, the fact remains that they are a good way to start earning some income after you buy a property. Once the value of the property appreciates, you can always look to sell it for better gains. 

Local developers offer the best, lowest priced properties

Check the credentials of the developer thoroughly. Local developers often default on delivery and this raises your expenses considerably. It is best to stick with experienced and reputed names. 

Property prices are always fixed 

The truth is they’re not! Developers can be negotiated with if they are in a hurry to clear old inventory and you may end up getting a good discount in the bargain!