Buying a house is the dream of many. However, when it comes to achieving this, people are curiously wary of fears and worries that are largely unimportant. Let’s try to debunk 5 home buying myths that confuse home buyers.
You have to be rich to invest in real estate
Nothing could be further from the truth. People often come to such conclusions based on real estate prices in urbanized destinations. However, the truth is that India is still a growing country with several untapped markets to explore. This provides exciting options for every budget category. All it takes is thorough research and more involvement.
Investing in real estate is risky
Well, simply put it isn’t! Every investment comes with its own risks. However, because there is a lot at stake in real estate, people are getting too cautious. The trick here is to educate yourself about the risks and act cautiously but confidently.
Renting is better than buying
Another perceived risk has no basis whatsoever. Imagine, rents go up every year and you keep coughing up money for dormant investments that would pay you nothing. Your own home, on the other hand, would provide you with long-term rental income or minimize your short-term rent. You also benefit from long-term capital appreciation.
Only investing in large cities is beneficial
No, investing in smaller cities has its advantages. While investment in metro cities offers many benefits, appreciation in metro areas is very slow. However, Tier-2 and Tier-3 cities offer cheaper rates and faster valuation. By investing here, you can benefit from the appreciation of the property over time.
20% deposit is a must
This used to be the case. There was a time when banks required a 20% down payment for an 80% mortgage. However, with the changing times, the banking sector has also become more lenient. Moreover, one can also pledge his other properties as collateral and get the much needed deposit amount. Using a personal loan to arrange the down payment is also an option that can be explored.
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