Buying a home is considered the ultimate benchmark in every Indian’s life. As soon as you are settled financially, family and friends start expecting you to buy your own abode, come what may. And you start the journey of house hunting, which is no less than an adventure.
Like every other thing in life, there are some strong notions attached to the process of home buying. Some of such notions actually are myths that people do little to question and verify and follow blindly. Here are some myths busted about buying a home in India:
- Myth 1: RERA Covers Everything:
Post RERA, there has been a sense of jubilation among home buyers who blindly believe that RERA will ensure that nothing wrong will go now in the process of buying a home. While most of us tend to believe that every project is covered by RERA and thus safe, it is not true.
The fact is that RERA covers projects that are 500 square meters or more area or eight or more units. Also, for a project to be RERA compliant, the builder needs to register it with the authority. So the onus falls on the home buyers (and not on the developer or broker) to check every detail in the concerned state’s RERA website to make sure that the project is registered or not.
- Myth 2: Subvention Schemes Cuts Cost:
Subvention plans or no-EMI-till-possession plan attracts home buyers every time. However, the truth is that the level of price discounts available is lower than regular construction-linked or down-payment plans and the overall ticket size may end up being higher.
“On an overall basis, the buyer is still paying the entire amount of his EMI as per his loan amount as the principal amount does not reduce till the actual EMIs begin,” Rohan Sharma, Head of Research, Cushman & Wakefield, told ET. “Pre EMIs are just payments of interest on the disbursed amount, which the developer pays on behalf of the buyer.”
Also, if the EMI is delayed by the builder, your credit score too takes a hit.
- Myth 3: Always Invest In Metros:
While most of us believe that one should invest in a house in tier 1 cities due to high rental value, capital appreciation of the property is lower than emerging tier 2 and tier 3 cities. Such cities have more appreciation potential in a long time.
Also, while buying a home in a metro city will burn a hole in your pocket, you just might get a better property in tier 2 and 3 cities at a lower price.
- Myth 4: Stay Away From Real Estate Agents:
You might be advised to not to get involved with agents or brokers and deal with the developer directly. However, good professional advice comes handy when making such a big-ticket investment. As long as a real estate agent is knowledgeable and has a stronghold in his area, he will be helpful by offering you multiple options as per your need and budget which a builder would never be able to do.