Talking about real estate and investing in real estate arises from completely different perspectives. Be it logical or confined by self-beliefs, people find it difficult to talk about real estate investments.
Traditionally, people are keen on following myths, especially the ones related to real estate. Myths hamper one’s investment process, resulting in investment hoaxes. If used properly, real estate investments can prove to be a boon in terms of securing one’s future. Following are some of the most common myths and misconceptions and deal breakers that play a major role in keeping people away from investing in real estate.
Myth: Real estate investments are all about debts
Reality: No debts are risk-free but when talking about real estate, one can look at the brighter side. Imagine paying off the amount within 30 to 40 years? Specifically, home loans, which one can repay by selecting a proper payment system. It’s about having a secure mindset and properly-timed investments, and returns will eventually fall into the correct places.
Myth: Real estate investment won’t secure one’s future
Reality: Real estate investment is all about savings. Savings are the foremost step when talking about having a financially stable and secure future. Investments in gold and equity are prolonged beliefs followed by one generation to another. However, by investing in real estate, one can beat inflation and end up with a better financially independent future.
Myth: Having an agent is not a big deal
Reality: Wrong! Having an agent plays a big deal when selling, buying, and investing in a property. Agents have more knowledge about current market values and conditions. A good agent will put his/her customers' interests first by providing them with the best deals. Not having an agent can lead to getting misguided resulting in wrong or fraudulent investments and losing money.
Myth: Real estate investment lets one experience heavy expenditures when thinking of buying a new house
Reality: Well, one needs to be mindful while buying a new house. A new property requires repairs but it’s not about heavy expenditure if one gets it checked by a home inspector. This will give you an idea of what needs to be fixed or completed. This process results in less expenditure and you end up owning a good property.
Myth: Real estate investments are for rich people
Reality: Nothing can be tagged as ‘only for rich people’. Markets provide every individual with equal opportunity. It’s about having thorough knowledge and digging up details precisely when one plans on investing. If one puts their mind at ease and tries to learn how real estate works, anyone can make a profit by investing in real estate.
The above mentioned are some common myths and misconceptions associated with investing in real estate. Lack of knowledge about the sector is a major hurdle people face when talking about it. Hence, it becomes easier for fraudsters to manipulate and spread false information.
Though the market keeps changing, gaining knowledge about real estate investment will come in handy for the long term. Investing in real estate is all about keeping updated and well-informed with the ongoing market trends when talking about buying or selling.
(Arush Nagpal is Director, Agrocorp Landbase (P) Limited)
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