De-bunking 5 commonplace real estate myths
Do you feel real estate isn’t for you? Think again.
According to a survey jointly conducted by Housing.com and National Real Estate Development Council (NAREDCO), the self-regulatory body of the Housing And Urban Affairs Ministry, as many as 35% of respondents preferred to invest in property over gold (28%), fixed deposits (22%), and stocks (16%).
People living on rent have realised it the need for a self-owned home in the hard way. The survey stated above found majority of the respondents actively looking for homes due to the tangible nature, security factor and better return on investment associated with the real estate sector.
Here are a few common myths around real estate that we are busting today:
1. Real Estate is passive investment.
Reality: It is not a passive investment. You are not expected to hold a property for at least 10 years before you can sell in order to get a better price. Turnaround time is faster due to the volatile nature of the market which changes on a daily basis. You can make the most of your investment by renting or leasing it.
2. It is a long term investment.
Reality: When you see it as a channel to put your money to work, it may seem as a long term commitment. This is just the tip of the iceberg. Real estate can fetch you a good price when marketed strategically. Homes built are made to last a long time, thus, irrespective of the duration, it makes for a dependable piece of asset.
3. It is for the elite class.
Reality: The middle income group of the country is on a rise and so is the youth. With families becoming smaller and wanting bigger spaces, real estate caters to all classes. It has evolved as an affordable, accessible commodity. Owning a home is not a far-fetched dream anymore. In fact, it is considered as a stepping stone to success.
4. Wait for the right time to invest in real estate.
Reality: We live in a dynamic, technologically advanced era. Of the thousand permutation and combinations of real estate investing, you can never determine the right time to invest. One must invest when they feel it is the right for them and not the other way around.
5. Properties in prime areas are worth investing in.
Reality: This does not stand true anymore. With development on a surge and value of land ever increasing, properties are being developed keeping in mind the factors of quality and longevity.
Post COVID-19, the demand for office spaces, showrooms and other additional spaces will increase. People are looking for places which are developed considering the safety norms issued by the government. Common amenities in addition to safety regulations are deemed to be the new normal.
Pro-tip: Real estate is for everyone. It’s just about figuring out which what works best for you depending on your buying criteria and investment goals.
If you have been considering buying a home or investing in real estate for a while and have been apprehensive, it would be advisable to talk to an expert who can guide you through the process.