TOP 5 MISCONCEPTIONS ABOUT BUYING A PROPERTY

Introduction

Pooling in your life’s savings to buy your dream property? Then you are not alone. For most individuals and families in India, buying or investing in real estate means getting one step closer to their dream. Investing in real estate such as plots, villas, apartments or other kinds of properties is considered a lucrative step towards financial liberation and a future investment for their generation. There is a ton of information available online and offline, which can be confusing and overwhelming. So it is absolutely essential to debunk the myths surrounding buying a property. So your savings are not invested in vain.

Misconceptions About Buying a Property
There are several misconceptions regarding buying a property that we will explore here. This includes diverse subjects such as conditions for availing home loan sanctions, hidden costs, including ownership of property and financial status.

For a long time now, investment in real estate has been commonly considered a privilege that only the rich can afford. Considering a typical middle class family’s expenses coupled with home loans, educational loans and vehicle loans, investing in a property seem like an implausible dream. But today the landscape of real estate has dramatically changed. With the middle class making a sizeable chunk of the population, real estate developers have also identified a potential need and a lucrative investment strategy that targets this class. Today, it is no longer the so-called rich who are...

Next, the RERA Act or the Real Estate Regulation and Development Act ensures that home buyers are safeguarded. This Act also covers properties that measure 500 sq metres or includes property development that exceeds eight units. However, this Act is yet to be implemented across all states. So it is important to know your rights and do your research thoroughly before striking the deal or signing on the dotted line.

Another interesting misconception is regarding the availing of the home loan. The RBI has made it mandatory to release only 80 percent of the total loan sanctioned. This means that the applicant has to provide the remaining 20 percent has down payment. If the loan applicant is unable to make the balance as down payment, it does not right away mean that they cannot avail the loan facility. There are other options such as mortgaging a property in lieu of the amount. If you are investing in properties that are still under-construction, the down payment on the loan amount is even

While planning for your property investment, do not forget to factor in additional costs such as stamp duty, registration costs, brokerage fee, parking lot fee, maintenance, and GST.