If there’s one industry where emotions are to be found attached the most, then it’s none other than the Real estate industry. Nevertheless, where there’s a surge of emotions, myths also tend to coexist. There are lots of myths that one must avoid as they can affect the intention of the investors and buyers, and at the same time, the interest in investing in that property too can be lost. Hence, we have compiled a handy real estate investment guide to bust all the myths and help you make a smart investment and more of an informed choice.

Myth 1: Land Scarcity

This is the most popular and common myth perpetuated by real estate agents and salespersons. There’s enough land to meet your needs for construction and habilitation. However, geographically, it might be true, but technology is always there to help people make the optimal usage of the already existing land piece. There might be no extra land to be wasted or used poorly, but there’s nothing to be bothered and affected by for efficient construction sites.

Myth 2: Excessive Land Prices

As much as emotions influence this sector, unprecedented economic situations make it more vulnerable and susceptible to risk. This current pandemic situation has hit this sector real bad, and most construction companies are trying to bounce back from this situation, but it’s still far from normal. Hence, prices do not always rise; instead, they fluctuate and sometimes even crash too in a state of severe economic crisis. So, invest rightly, not blindly, as prices are subject to market risks and other situations as well. So if you think land prices will always be high and inflate even more if you cant afford it now, then it might not be true. It might inflate, remain unchanged, or go down. You should invest accordingly.

Myth 3: Real Estate investments Arent Reliable

Investors have had their share of suspicions when making heavy transactions in exchange for a property. The reason is it is not constant and might flip quickly. However, it’s not a popular myth, but still, transaction costs might get incurred, and negotiating a good investment deal can get quite tedious. It also depends upon the transaction in exchange for a particular property. This myth is partially true, but it shouldn’t always be an issue to deter yourself from making transactions that involve the exchange of property. Do your paperwork and take a calculative decision that works well for you.

Myth 4: It’s Better to Rent a Property Than Buying It

We often assume that renting a property is a better option, but this is not the case. Owning a property in your name is far more beneficial and in today’s times, owning a property is no big deal as we have easy home loans and EMI options available. One can always sell off property at higher prices later if they don’t need it. Rent is still a costlier option than buying a place, and every year rent costs increase. When on the one hand, you’re paying a monthly rent of INR 30-40,000, but if you own a property or land on home loans, you have to pay the annual instalments of just INR 60-70,000 on a 30% interest rate. Hence, it’s better to invest in a property fully if you can, to attain better ROI.

Myth 5: Past Impacting Future

The world around us is continually changing and experiencing major shifts. This is also causing our economies to fluctuate and destabilize. However, past performances cant predict the price of the property in the future. It’s just highly uncertain always. So make your decision based on the current status or market situation, unbiased from future or past prospects.

Therefore, these are some of the popular and unpopular investing myths that we have tried to bust here to influence your rationale towards buying and investing in any property. When you’re familiar with these myths, this will surely help you make sound and rational financial decisions regarding property. Don't let anything deter you from buying the property you want to.