Property investment doesn’t just involve money but a lot many fables. We have tried to debunk the top myths related to real estate which influences buyer decision:
Myth 1: Price appreciation is a never ending process
Reality: Prices reaches saturation after which they do not rise further. Prices attain saturation if the locality is already established, have big ticket infrastructure such as metro or flyover in close proximity or have all amenities in place. There can be nothing more which can attribute to price rise.
Myth 2: Infrastructure pushes property prices
Reality: Infrastructure announcement attributes to maximum increase in prices. It impacts the rental demand and cost but capital values remain uninfluenced except during the initial phase.
Myth 3: NRIs always search for luxury property
Reality: NRI investors always look for income generating assets in both commercial and residential real estate sectors. In residential real estate, capital appreciation is also an objective but the larger intent in any NRI property investment is that the asset should pay off over the medium to long term.
Myth 4: Doing interiors pushes up the prices
Reality: You might be investing for doing up the interiors to get good deal but the new buyer moving in might redo it to suit according to his needs. So, you are wasting your time, energy and money if you are investing in interiors.
Myth 5: Property prices fall!
Reality: Real estate prices never falls. Price correction implies that property cost won’t increase as compared to inflation but it does not mean that it would fall or decrease.
Myth 6: Discount/Offers brings down the total cost
Reality: If you think cash discount offered by builders brings down the total cost of your purchase, then you are wrong. The discounted amount is borne by the buyers where they are made to pay extra for some amenities or facility. But, if you are actually getting such offer where difference in cost is evident, don’t let it go!
Myth 7: There is a best time to buy property
Reality: There is no right time to buy property as prices always tend to increase. ‘Strike when the iron is hot’. If the deal is too hard to resist, make sure you don’t let it go.
Myth 8: Green homes/Eco-friendly homes are expensive
Reality: It hardly adds up to the 10% of the total cost which also gets recovered over long period of time.
Myth 9: Top floors always carry premium
Reality: For cities like Mumbai, where living on heights is a craze, pent houses in areas like Noida, Delhi and Gurgaon are still not popular and does not command heavy premium.
Myth 10: You shouldn’t invest early in property market
Reality: There is no right age to enter real estate market. If you enter early, you can become an owner soon and can get rid of loans at considerable early age. So, investing when you are cash ready and almost equipped to pay off the EMIs, is always a right decision.