Property investment myths are famed for inducing tension and confusion. Am I too young to invest in property? Are property investments safe? What if the prices fall? – are questions that cloud our minds when it comes to investing in properties. Although most of these are pertinent issues, there are â€˜nâ€™ number of myths surrounding the property investment phenomenon.
The human mind is prone to develop myths around matters that excite us, and tickle our senses. With time, these beliefs (misbelief) sink in and gets deeply rooted into our core being. Myths about property investment are no different. Some of them almost crushed Bangalore-based start up entrepreneur Kallol Senâ€™s hope of buying a high-end property in Kolkata.
Reeling under a series of myths, Kallol almost dropped the idea until he was guided out of the common set of myths and misbeliefs. Here are some of them.
Myth 1 â€“ Real Estate Price Appreciation Is a Created Bubble
Reality: Pessimistic opinions about the existence of an inflated real estate bubble has been time and again crushed by the never ending price appreciation cycle of the Indian real estate market. The reason is fairly simple and backed by substantial logic. The Indian market is huge, and land is scarce, moreover, there’s also an ever increasing trend in costs and materials, which propel the real estate prices to break higher barriers. According to analysts and keen observers, the Indian real estate market has never been a witness to an abrupt price fall, whereas on the contrary, it has historically offered remarkable returns on investments locked in for a time span of 3 to 5 years. Though it’s true that appreciation might not be 5 fold, but definitely, Indian real estate has potential steam to power growth in the tune of 2 to 3 times in all Metros and Mini-Metros.
Myth 2- Property Prices Might Fall
Reality: Real estate is dependent on various other related industries, which sometimes make the market temporarily downslide and sluggish. However, both statistically and historically, it is a proven fact that property prices never fall. Agreed, the return on property investment may not be at par with the inflation rate, but it does not necessarily mean like it will go down to break the cost threshold barrier.
Myth 3 â€“ Only the Rich can Invest in Real Estate
Reality: This is a delusion most people suffer from. The fact, however, is that India is a developing market and there are many new sectors and cities emerging as hot investment opportunities. The potentialities are unlimited across all budgets. You just have to be more informed, seek professional investment advice from an experienced property advisor with long track record, and do a bit research.
Myth 4- Investment in Interiors Is a Waste of Money
Reality: Interiors don’t add up to the resale value of a property is another myth and a widespread misconception in real estate. Interiors may not churn out a monumental hike, but investors can always expect a decent jack up of 10-15% for a well-designed layout. Property interiors, however, have to be planned with intelligence and not on impulses. It will be wise to stick with the basics, as an impulse-driven personalized view may not work out with the requirements of a new buyer.
Myth 5- There is a Right Time for Property Investments
Reality: There is no defined age or a right time to invest in properties. Chances are, if you enter at an early age, you will be in a position to clear off your loans with a considerable amount of life left in you to enjoy your investment. It is equally important to understand, property prices are ever increasing, so sooner the gainer. The accepted thumb rule is to strike the deal when the iron is hot. Taking the plunge whenever you are ready, is always the right time.
If you have any other additions, besides the above-mentioned myths about property investment, please get in touch with us, we will gladly debunk them as well and offer professional advice to make your property choice easy and hassle free.