6 Misconceptions about Buying a Home in India

Buying a home maybe one of the biggest financial decisions of your life. For instance, assuming that you have an income of 8 lakh before taxes, you will have to save anywhere between 3.6 and 12 years to make a down payment for a home in cities such as Hyderabad, Delhi, Chennai, Mumbai and Kolkata. Therefore, ensuring that you’re not believing fallacies is important. Since there are scores of misconceptions about buying a property, here’s are 6 that you shouldn’t believe if you’re ready to take the plunge.

Real estate investment is only for the rich

Today, there are plenty of builders and a variety of properties in the real estate marketplace which means that there is something for every budget. For instance, in Bangalore you can buy apartments ranging from 215 to 81,301 per sq. ft. As long as you research localities, builders and projects, you’re sure to find something within your price range.

You are completely protected through RERA

To start off, not all projects are covered under RERA, and only those that have an area of 500 square meters or more, or over 7 units are. While RERA gives you security on what you will get from the builder, the fact is that RERA has not been implemented as it was expected to be. So, don’t assume RERA compliance. Make it a point to check the details before finalising a deal.

Paying rent will save you more money

Renting may seem affordable, and in some cases, it can be. However, money spent on rent is more of a temporary solution as it gives you no return on investment. Further, if you decide to settle in a house of your own later in life your salary increments may not be commensurate with the rates of inflation, making it difficult to buy a home.

Investing in interiors will give you no returns

According to experts, you can enjoy a sizeable 10–15% increase in resale value if you have invested in the right kind of interiors. It is best to invest in a contemporary style that is sure to sell, rather than go for something that’s trendy now, but is likely to go out of style in a few years. For example, people today prefer modular kitchens and energy-saving lighting, so be sure to invest in them.

You earn more when you invest in a Tier-I city

Tier-I cities include Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad. While investing in a Tier-I city will ensure that you get a well-developed locality and easy access to amenities, your returns on investment may not be as high as what you would get in a Tier-II city in the long run. This is because Tier-II cities have more scope for growth and hence your property is likely to appreciate more rapidly.

Real estate agents are unnecessary

From scouting properties and getting you the best prices in the neighbourhood to meeting with builders, negotiating the transaction and checking legal matters, real estate agents can greatly simplify the process of purchasing a property. While you might be able to get plenty of information online today, you cannot substitute it for the hands-on experience that an agent brings to the table.

If you are on the hunt for a one-stop solution when it comes to navigating the home-buying journey, look no further than Home Loans by Bajaj Housing Finance Limited. It offers affordable financing and helps in finding the right property. This way, you will not only be privy to the latest projects like Savvy Studios and Godrej Garden City in Ahmedabad or ATS Knightsbridge and Homes 121 in Noida, but also benefit from a property dossier, which will educate you about the legal and technical aspects of becoming a homeowner. With loans up to 3.5 crore, a lengthy repayment tenor and zero prepayment and foreclosure fees, this is a convenient way to invest in a home without any of the stress.

To get started by accessing a range of customised deals, check your pre-approved home loan offer from Bajaj Finserv.