7 Common Home Buying Myths You Need to Stop Believing

7 Common Home Buying Myths You Need to Stop Believing

7 Common Home Buying Myths You Need to Stop Believing

Planning to buy a home but apprehensive about taking the plunge? Here we bust few home-buying myths for you.

Buying a home is one of the biggest decisions a person makes in his lifetime. Hence, we are bound to be extra cautious and many times, get entangled in unnecessary conjectures, which more often than not can be detrimental and delay the decision-making process. Here are a few home-buying myths that we bust for you, so that you can go ahead and take the plunge.

Metros are still the best places to invest

A fundamental real estate investment mantra is that emerging localities are preferable to established and often saturated ones, example, if you look at the Sarjapur road in Bangalore, there were very few developments happening in 2010 period, it was considered an outskirts during that term, but now Sarjapur road is one of the fastest developing localities in Bangalore, you can see the difference in terms of roads, new commercial projects, SEZ’s, new residential projects, etc. A person who had invested in a property in 2010 must have seen good returns in 2017. So, if you are looking for investment, then anticipating the emerging localities is always preferable.

RERA covers all real estate projects

RERA covers only those projects that are either 500 square meters or have eight units or more. It is also applicable only to projects for ‘sale’ and it does not cover lease agreements, redevelopment projects and excludes the projects received Occupancy Certificate. The only exceptions are leases that extend over a 90 year period or leases that have the same benefits of sale rights; RERA doesn’t cover projects that have received completion certificate before commencement of the Act and projects consisting of renovation/ repair/ re-development (that do not consist of new allotment of any apartment/plot).

GST has made home-buying complicated

GST has subsumed all the indirect taxes and hence, made it easier for potential home buyers. Earlier, due to information irregularity, consumers were largely unaware of how VAT and service tax were calculated, definitely, the entire tax calculation was too complex for lay people to understand. But now, the math is simple, under-construction properties will be charged at 12 per cent (excluding stamp duty and registration charges) and no GST is applicable on ready to move in apartments.

Renting is better than buying

If you are sure of which city that you would be living in, buying your own home is a better option due to the appreciating property prices. It is always better to pay EMIs over monthly rents, because, end of the loan tenure you own a home.

Monsoon is not right time to invest

If you are looking at a resale property, then monsoons are an ideal time to visit the property site and invest, as one cart gauge the pain-points in the apartments like seepage, water logging, etc, which can help you take an informed call.

Subsidy on home loan under I’MAY is not available for adult-earning members staying with parents (who already have their own home)

Under CLSS (Credit Linked Subsidy Scheme) for EWS/LIG/MIG I and II households/ an adult earning member of the family, irrespective of the marital status, is considered as a separate household. The person is eligible for home loan subsidy, provided he/she does not already own a pucca house under his/her name and is eligible as per the norms specified in the scheme guidelines.

Developers shy away from affordable housing

The slowdown in sales in the premium segment of the market and the government’s focus on affordable housing have made developers look at budget homes with a positive intent. Also, since there has been a historic deficit of affordable housing projects, a move like this makes eminent business sense.

Source: times of India

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