Common Real Estate Myths and Facts
Myth – 1
Brands do not really matter in real estate
Fact:
Your investment is always secure as there is less chance of foul play when you buy property from a renowned developer as they are mostly transparent in their dealings.
They are known to consistently deliver quality projects that are highly valuable. In other words, they are trustworthy and hence safer.
With consumer preferences tilting towards branded products over the last few years, the share of homes by branded players is on the rise across the top seven cities. Know more about How To Check Credits And Reality Of Real Estate Developer.
As per our knowledge, branded players share accounted for 45% while the remaining 55% was by non-branded players.
Talking about how much branded housing has increased in the last year, it’s 55% of total supply across cities. This clearly indicates that branded players have been increasing their supply to tap into the growing demand from home-buyers.
Myth – 2
Houses will become more compact eventually
Fact:
The trend of smaller compact homes was reversed as we saw houses get bigger. Home-buyers working remotely were looking for that extra study or children’s room on site visits.
We notice that many times an enquiry for bigger home to accommodate that half-bedroom or a space that could be converted into a kids’ playroom or a home office.
Check this about – Home Improvements On A Budget, Is That Even A Thing? Yes – Find Out How.
Myth – 3
The government is not doing enough
Fact:
The real estate sector is confronting crippling liquidity for a long time. A relaxation in norms for raising capital, tax incentives for buyers, reduction in housing finance cost through preferred interest rates, continuing subsidies under Pradhan Mantri Awas Yojana (PMAY), quick availability of alternate investment funds (AIF) are some relief measures the sector expects.
To help builders’ clear unsold inventories, the finance ministry recently announces income tax relief for both, homebuyers and real estate developers. Besides, the central government also doled out a series of measures to boost the real estate sector.
Myth – 4
Quote higher than what your house costs to negotiate and get your desired price
Fact:
Actually, there is a fallout if homes are not priced right. Unnecessary inflation leads to homes not being sold and pushes them out of reach of genuine buyers.
Generally, many people have a tendency to quote a price higher than the market value, so that sellers can negotiate the figure in their favor, but this could be counterproductive.
During the pandemic, we saw real estate prices fall, especially in the resale market. This led to an almost immediate 12 to 15 per cent price correction and some sellers decreased the prices by 15 to 18 per cent because they wanted immediate cash.
Myth – 5
One should buy only when the market is favorable
Fact:
Many people are saying that the pandemic is the right time to buy a home. But I personally feel that one should buy a home when they genuinely need to.
People always put off buying a home – either the price is too high or the buyer is seeking better deal elsewhere.
Actually, many buyers also get demotivated at the idea of paying EMIs. Some people get anxious about buying a home and end up not taking that big step, even though they have found the home of their dreams. Many of those who did not buy a home, and instead waited for the market conditions to improve, found it tough to continue staying on rent.