Indians are generally of the belief that investing in property is a great way of increasing wealth, but there are a lot of myths involved in the process of buying. Since it’s not every day that you think of investing in a new home, gather all your facts together, discuss with as many home owners as possible and clear your doubts. Most first-timers are unsure of the facts and fictions involved, so if you are one of those who has been sitting on the fence in indecision, time to jump off and get your myths and facts straightened out!
Here is a look at some of these myths and facts to put your doubts at rest, once and for all.
Why rent when you can own?
After a while, spiraling rents and having to pander to your landlords’ dos and don’ts end up getting on your nerves, so what do you do? Get your own home! With the amount spent on rent every month, you can easily convert it into EMI payments on a home loan that will give you your own home at the end of the day, aside from being a major investment as costs of homes are only on the rise.
You have to be rich to invest in Real Estate
As the old saying goes, Rome wasn’t built in a day, and same is the case with your bank balance. But not having sufficient funds doesn’t mean you can’t invest in real estate. Loans can always be taken, provided you have a source of income to keep paying the EMIs. It ends up becoming a great saving at the end of the day when you finally own the property.
Aside from giving you the blessing of owning your own roof, home loans also help you gain attractive tax benefits. The interest on your EMI qualifies for deduction for claim values of up to 2 lakhs. The principle component of the home loan is eligible for tax deduction and you can claim up to 1.5 lakhs.
Attractive home loans
The interest rate is the most important factor to look at when applying for a home loan; the higher the interest rate, the higher will be the end cost of your property. So choosing a builder or bank which offers decent rates is very important. With two rate cuts by the RBI in 2016, home loan rates have come down after a long time. Further rate cuts are also expected, so it seems a good time to start thinking of investing in your own home.
Increasing rates of Real Estate
In a fast-developing country like India, investment in real estate is a sure hit. With increasing urbanization and hikes in land rates, buying a home is definitely going to get you good returns, especially if it’s located in bigger cities. Cities like Trivandrum, Kollam, Thrissur are good places to invest in real estate, but the timing of investment is crucial to financial gains.
It’s risky investing in real estate
Investing in any business is risky; the plus point of investing in real estate is that at the end of the day, the property is a piece of tangible hard asset that stays with you, even if the housing market rates fluctuate.
Hopefully, some of the myths have been busted for you, and you are ready to join the bandwagon now!