Home Buying Myths that You Should Reject Outright

Don’t rely heavily on the truths pertaining to the purchase of residential propertyoriginating from word-of-mouth since these may prove right only for buyers in certain situations but are not at all obligatory in general. In fact, these myths can even misguide you as have been elaborated here.

  1. All Residential Projects Fall Under RERA

You have often heard people talking about RERA bringing in relief to home buyers and thus, started believing that all residential properties are safe having come within its orbit. In reality, only those projects comprising a minimum of 8 apartments or occupying a minimum of 500 square meter area are included under the charge of RERA. But the builder must get the property registered to make it compliant. The fact, that registration prior to the launch of all properties fulfilling the aforementioned criteria has been made mandatory by RERA. So, do check if the project where you have selected your home is registered with the concerned state’s regulator.

  1. Under-Construction Properties are Risk-Free Post RERA

The implementation of RERA has to an extent pushed the builders for completing the existing unfinished projects instead of launching new. But don’t take that as an indication of no risk being involved in under-construction projects. Several reports so far have revealed the slow or no functioning of RERA across most states and even its dilution in some. Can you really keep faith in under-construction projects under such circumstance? Ready-to-move property is a safer option unless you head to an eminent player in the industry who deals in diverse properties. Besides, it is free from GST and most importantly, you are assured that you will get what you have seen.

  1. You Save on Costs with Subvention Schemes

Subvention scheme appears apparently alluring since the buyer is free from any EMI payment till the property has been possessed. You already now that the builder will charge you an upfront amount of 10 to 30 per cent of the total cost while the remaining money is obtained by the builder from the bank that provides loan to the buyer under an agreement between the three of them. The agreement causes the builder and not the buyer to pay the loan interest to the bank while the latter provides money as the construction work advances.

The buyer has to start paying EMIs only when he receives possession of his property. But does that actually reduce the buyer’s cost? It only provides him sufficient time for getting financially prepared to pay the EMIs and is thus, a resort for those who have to balance between paying rent for the house they are residing in and the EMIs. Straight discounts on ticket sizes are rather effective in reducing your purchase cost.

  1. Metro Cities are Worthy of Investment

It is definitely true from the perspective of letting out your property so as to earn a sizeable rental income. A residence in any of the Tier I cities will naturally be in greater demand. The presence of well-knitted social infrastructure and developed amenities definitely counts for.

But if you are in search of properties at attractive prices then nothing like those available in Tier II and III cities. Sky-high property prices in the Tier I cities have accelerated the growth of emerging localities in the areas close by.

  1. Living on Rent is Better

This decision varies with individual priorities and conditions but at some point in life, you might feel the urge of settling down in a home that you don’t have to move from. With time property prices might appreciate and you never know whether your salary would be enough to keep pace with inflation. Unless you are brimming with a fortune to splurge on your desired home even in your late 40s, plan your investments before things get out of hand.

A property is a performing asset that earns you an income when you rent it, is a shelter to your family when occupying it and is an appreciation of capital in the long run when you sell it. Therefore, by no means, you are at loss.

  1. No Need for Hiring a Real Estate Agent

A big-ticket investment calls for acting wise that requires knowledge and expertise in the concerned field. A real estate agent serves the same purpose but is ignored by many buyers in order to save brokerage charges.

Had you known the benefits, you would start thinking in a different way.

  • Unlike the builder, the agents don’t convince you to buy the property concerned but expose you to a wide variety from where you can choose.
  • The brokerage cost is worth the final price you pay after the agent negotiates it with the builder on your behalf.
  • Documentation of all details and legalities are executed in a hassle-free manner apart from the valuable knowledge you gain.

Whether planning a flat sale in Kolkata or finding out one to purchase, contact us at ransventor.com. We fetch you the most befitting options through our well-connected network in the industry across the city and its suburbs.

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