Myths and Facts on Real Estate Investments in India
Buying real estate is a huge financial commitment. It is probably the costliest purchase we make in our lives. Hence, most people tend to research extensively before buying a house, office, or shop. The boom of the internet has made researching real estate investments easier since you now have all the information you want at your fingertips. Unfortunately, it has also helped spread some myths about investing in the sector. In this article, we will talk about some common myths about real estate investments in India and debunk them to help you make an informed decision.
Myth#1: Real Estate Investment is only for the rich
Fact: We don’t know how or why this myth evolved, dissuading people from investing in real estate. If you are rich, then you can buy a house/office with ease. However, even if you don’t have the required funds, you can opt for a home loan where a financial institution lends around 80% of the property value. You can repay this loan over a long period via affordable installments.
Myth#2: Real estate investments are high-risk investments
Fact: Every investment has some element of risk associated with it. However, if you compare real estate with other investments like stocks, mutual funds, gold, etc., then the risks are much lower with real estate. This is because the real estate market is less volatile than the stock and gold markets.
Myth#3: One should invest in developed areas only
Fact: Areas and localities that are well-connected and fully developed are great places to live. Hence, many investors tend to opt for houses in such areas. However, property prices in these areas are high and near their peak values. Therefore, while you might receive higher rent, the capital appreciation will be minimal. Hence, you can consider investing in an area that is developing as this would help you buy a house at an affordable price and get an opportunity to earn high capital appreciation.
Myth#4: Real Estate prices will always keep rising
Fact: Many people believe that real estate prices never stop increasing. Hence, if they invest in a property and hold it for a long time, then their returns would be exponential. This is not true. Before you invest in real estate, it is important to remember that price increase is not a never-ending process. Property prices have a saturation point depending on the locality and quality of construction. Once the prices reach their saturation levels, they will stop increasing. Also, a sudden drop in demand can result in a drop in property prices too. Hence, it is important to keep these factors in mind before investing.
Myth#5: Smaller cities are not ideal for real estate investments
Fact: While traditionally, most companies had offices in metropolitan cities only, the demand for real estate in these cities was very high. Hence, real estate investors would not consider smaller cities like Pune for buying a house/commercial space. However, in recent years, there has been a shift in the trend with companies looking at Tier II and III cities for opening offices since metro cities are overpopulated and oversaturated. This has resulted in an increase in the demand for properties in smaller cities too. Also, with most of these cities being in the initial phases of their development, the avenues to earn high returns are aplenty.
If you are thinking of investing in a commercial or residential space in Pune, then make sure that you assess the locality and neighborhood carefully. Also, spend time analyzing the quality of the construction to ensure that you get maximum value for your money. BramhaCorp has been developing properties in Pune for many years. With our ear to the ground, we stay abreast of changing trends and demand patterns and identify the evolving needs of property buyers. We inculcate these learning’s in our design and construction processes to create state-of-the-art buildings that are ideal for modern living.
You can consider investing in our residential projects like THE COLLECTION by BramhaCorp and BRAMHACORP SMART at New Kalyani Nagar, or commercial properties like BRAMHACORP BUSINESS PARK at New Kalyani Nagar and BOULEVARD TOWERS by BramhaCorp at Pune Camp based on your needs. You can also look at our newly-launched BRAMHACORP TOWNHOUSE which offers commercial spaces and pre-leased residential units for investors.