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October 29, 2021

5 Common Home buying Myths busted

There are certain myths related to buying a house and it is heavy time to bust those myths. Buying a home is one of the biggest investments and dream achievement in your life so it should be away from myths and misconceptions. You can practically check on the factors related to buying a home, an apartment, a flat or a villa but not on myths. The following points will help you keep all the tensions of myths away when you see Villas for Sale in Kochi next time.

Renting is better than Owning

This is a widespread myth which makes people believe buying a home would keep their spending capacity in line. People invest in stocks and bonds but not in real estate. Real estate is an asset investment. Buying a house is a long term settlement. Rent does not offer a lot of cost savings. For example if you are planning to buy a one-crore Villas for sale in Cochin and take out an 80-lakh loan. With the interest rate as 9.4%. For a 30-year property loan, the EMI will be roughly Rs. 67,000.
If you rented this house instead of buying it, the typical rent would be between Rs. 30,000 and Rs. 40,000 per month, depending on your landlord. Compare the price and bust the myth for yourself.

Ready to move in projects are costlier than under construction projects

Ready-to-move-in projects are better value for your money as we can clearly see the amenities they provide. Whereas under construction projects are cheaper but holds a risk element. Both the projects are good when selected carefully according to your needs. If you are planning to buy a house and make a comfortable interior for yourself you can go for a under construction project. In both cases your budget is what you decide no matter what about the projects.

Investing in Real Estate is Risky

People invest in many areas like stocks, mutual funds, gold and bitcoin. Every investment contains a risk factor but compared to other investments real estate investments are less risky. With the rising population in India, developed land is a scarce property. Investing in a city like Kochi will always give you double return.

A Huge down payment is required to buy a house

People may put up a doubt that for 80% of house loan they have to pay 20% down payment. This has changed, it is your interest which decides whether you have to pay a large down payment. Apply for down payment assistance and go with mortgage insurance which will increase your purchasing power.

Every property offers the same facilities

Every property does not give you the same facilities. Some properties may excel when it comes to different facilities and their quality offered. Every project has its advantage or value for money. For example some may be senior-friendly homes, so this will contain facilities supporting senior citizens. Go through the facilities before buying a home.