Busting Some Myths About Real Estate

Written by Posted On Saturday, 13 August 2016 00:15
Myths About Real Estate Myths About Real Estate Myths About Real Estate

The real estate industry arouses great expectations and sometimes leads to spectacular disappointments among people who invest in it. Behind the expectations and disappointments lies the fact that a lot of people who invest in real estate do so without a proper examination and analysis of the sector. They fall prey to bad advice from inexperienced sources and start believing in myths that are far removed from the ground reality. Hence, here is a list of top real estate myths that must be disbelieved.

It is always a sellers’ market

A common misconception held by people is that it is always easy to unload a property if the gains aren’t big enough. It isn’t that simple; real estate is a relatively illiquid market and it usually takes 3-6 months to sell off a property, and may take even more during a slump and even then you may have to compromise by selling at a lower rate.

Local builders offer cheaper rates

This myth stems from the fact that local builders have smaller profit margins and do things the cost effective way, as compared to the established developers. While this may be true in some cases, big developers also offer lucrative rates, along with the assurance of a successful brand.

It is impossible to find a property below market rates

It may be difficult, but it certainly isn’t impossible to find a property below market rates today. With the help of dedicated websites and forums, it is easier to find properties at cheap rates.

Renting is an unwarranted headache

A lot of people shirk from renting out their properties, either due to the hassle of finding reliable tenants or because they believe it doesn’t offer big returns. Truth is, if you have an empty property you’re simply failing to utilize a crucial source of potential income.

Real estate is unprofessional and unorganized

This myth may have been a reality a decade or so ago, but today the real estate sector is becoming increasingly organized and professional. Standards of practice have been established and compliance is important to maintain a good reputation.

Value for money is possible only in the suburbs

Another common myth, 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.

Better Buyer without an agent

Another myth is you will get a better buyer if you are not using any real estate agent- That’s completely not true. If the house is listed with a real estate agent, the total sales commission is built into the price coated. If the buyers don’t have an agent, the seller’s agent will receive the entire commission.

Agent is trying to sell me a dream, no project is ever going to come on this barren piece of land

Well if that was true then cities like Gurgaon, Greater Noida, Bhiwadi etc. will be non – existent and the India story would have never caught world’s attention. However, we must be careful about fraud. You must do your due diligence on the developer, check his past record and invest in a construction/ development linked plan to reduce your risk. In case, you are a newbie Real Estate investor, you should hire a professional or have a mentor who can guide you.

Removal of myths is important in order to make a fair decision. It becomes much more important for real estate because of the huge amount of investment required. Therefore, before going for residential projects in Lucknow be sure that all the myths are busted and the relevant factors are kept in mind.

Summary: As any sector progresses, so do the myths about it. Real estate is no difference. Over a period of time, many different opinions about the real estate have converted into myths that many people follow blindly. It is time to let go of such myths.

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