Indian Real Estate investment myths busted         

 There are several myths surrounding the Indian real estate market, where stability is a big question. A consistent growth curve is no longer a common scenic. Does this predict that India’s real estate market is a bubble waiting to burst or the other way round? Well, myths and predictions are sundry but ensuring that you know the important ones is good for your real estate investments. Since this sector is dynamic and somewhat diverse sector with several theories attached to it; we are busting 7 of the top myths:

Price rise in real estate

Price hike expectation is the prime reason that lures people for property purchase. This is one such myth that surrounds the bull market the perception in people that they would witness an upward movement of prices over time. Owing to this futuristic approach, people start their investments considering it as profitable deal. In reality, there is no land shortage and prices have been known to fall in certain areas where the demand is stagnant.

Expectation of quick return 

Returns could not be static; they keep fluctuating and hence could rise to unexpected levels but at the same time could also reduce drastically. Considering real estate as the sole path to wealth should be avoided as real return on real estate investments is not worth cherishing. The returns would by large depend on multiple circumstances. If you are looking for quick returns, invest in market instruments instead.

The bigger the down payment, the better 

A smaller down payment may actually benefit you with regard to availing a lower rate of interest since less than 15-20% automatically entails buying insurance. Low down payments also help you snap up properties right away without waiting to save enough.

Value for money is possible only in the suburbs 

Another common myth! But the actuality is that life in the suburbs may cost you more than you think in spite of the cheaper prices of apartments and land. This includes transportation and related costs of amenities which can often equal your savings on the property.

Redecoration makes for a good investment proposition

“Remodeling facilitates sales”- it is a buyable proposition only if you possess the selling skills. Else, it wont fetch you as much as you think. With the tight situation in contemporary times, buyers never really want to fork out much for newer additions.

Go for the first possible discounts 

Discounts are a way to lure the customers towards purchasing the property that has been in the inventory for long and the developer wants to sell off. This generally tempts the buyers to immediately finalize the best discounted property with the expectation of price rise in the future. However, this is a tactic by real estate developer to push sell the property.

Rentals may not always be a good option 

Until you notice appreciation in the property value, rental is no doubt the best option to sustain earning from the property in hand. One need to let go of the fear of renting property as this is merely a misconception that rental could be risky.