Have you been attracted to the ‘No EMI Till Possession’ or ‘Book Now, Pay Later’ schemes? Is your mind telling you to book your dream home right away? This is a marketing plan under the Subvention Schemes offered by the government. It allows the buyer to buy home by paying the booking amount upfront and let the builder pay the interest on EMI till he/she gets possession of the house. Many buyers get an instant urge to buy a home as it saves them the interest until the property is under construction. However, it is a myth! Subvention schemes do not cause any direct reduction in prices and even lead to a higher ticket size. And this is just one of the myths misleading the real estate buyers!
Similar to this are a number of other myths related to real estate India that needs to be debunked to make you a smarter property buyer/seller. So, let’s get started.
All Projects Are Covered Under RERA
The Real Estate (Regulations And Development) Act was implemented across the nation in May 2017 and has transformed the way real estate transactions take place. It has empowered the real estate buyers by adding transparency in the process. However, believing that all projects are covered by RERA is not what smart buyers should do. Not all projects are covered under RERA as it has set some threshold and projects not falling under them do not need to get RERA registration. It only covers projects that are over 500 square meters in area and have at least 7 units under it. So, before investing in any type of property in India, see if it is RERA compliant or not and do not blindly believe that your state Real Estate Regulatory Authority would safeguard you in case of any unscrupulous activities on the hand of the developer.
Real Estate Agents Have Become Obsolete
The next big myth about the real estate industry is that real estate agents have become obsolete and they cannot help in property transactions. With the emergence of technology in the real estate industry, it has become easier for property buyers and sellers do the needful on the net. A number of real estate portals like RealEstateIndia.Com have made it easier for them to find property or sell it easily. However, the role of real estate is still critical in this industry. They help in finding property with all the specific requirements, negotiating between the two parties, study and pass information about the market trend, and whatnot. They are aware of the ground reality.
Metro Cities Are Best For Buying Homes
Majority of the home buyers, especially those looking to get high returns from their property investment, consider metro cities or the Tier-I cities like Mumbai, Delhi, Chennai, Kolkata, Bangalore, etc., for such investments. It is a general belief that property is such cities would only fetch returns. While buyers believe that metro cities are the best for investing in property in India, the return potential is much higher in Tier-II and Tier-III cities now. The Tier-I cities have reached their full potential but Tier-II and Tier-III cities have a very high growth potential. One can buy property in such cities at a lower price and as the real estate of the cities develops further, the price would escalate soon. Moreover, the government is now focusing on developing these cities into smart cities and investment in them could be pretty lucrative.
Spending On Interiors Doesn’t Pay
The price of the home is not just dependent on the size and its locality. An important factor that determines the value of any property is the interiors. Majority of the home buyers still believe that spending money on improving the interior of the property is a waste. However, investing in the right style of interiors can increase the resale value of a home by 10-15%, believes most of the real estate gurus. Having smart and trendy interiors that would not go out of style and remain important even after a decade is a good idea. Many buyers would instantly pay more for a well-equipped and fitted house as it saves them the extra efforts and pain of getting that interior done afterward.
Indian real estate is fast developing and making investment in this sector is a lucrative idea. But to ensure profits and find the perfect property that matches your requirements, it is imperative to debunk all the myths related to this industry.