Busting Common Myths About Buying A New House

In this internet frenzy era, we tend to believe a lot of things we come across, and on social media? The celebrity hoax stories push most people on their third foot only to realize that it was only a bunch of internet junkies messing around. You are going to have a new house and you need to be in a confident position before you take the big steps of signing those valuable documents. Let’s bust some myths about the real-estate to help you take a better stance at buying a new property.

Wait For The Right Time

“If you wait now, you will wait forever.” Wise words that hold genuine credibility in the real-estate sector. You can never be assured if the prices will go down in the upcoming months, or in fact, ever.

Real estate economy has been rapidly rising, especially in developing nations where urbanization is making way for increased GDP. The statistics don’t seem to be taking a negative slope anytime soon, so the prices are unlikely to decrease. Waiting any longer can bring around a twist of unexpected events and regret is something you wouldn’t want to face before such an auspicious step in your life.

The conclusion of the big talks being – Now is the right time if you are ready for it.

Down Payment Atrocities

There are quite a few myths hovering around the down payment equity which you need to fulfill before you opt in for a loan.

The first myth being – You need to pay 20% of the down payment. While the latest reforms in government policies do state that the banks cannot release more than 80% of the property value, it sure doesn’t mean you need to pay the remaining down payment in cash.

The down payment criteria can be compensated by mortgaging your existing assets or property. The down payment sometimes gets reduced to 10-15% if the construction of your new house is yet to begin.

The second myth says – All you need to have is the down payment amount ready.

While it is not completely false, it can be called a partial fact and that is pretty dangerous too. You need to have the down payment ready along with some extra amount to pay for other convenience and paperwork that runs along the process.

Maintenance deposits, brokerage fees, registration fees and commodities as such are usually termed as hidden charges and you should be comfortable bearing these as well.

Why buy when you can rent?

You might have heard this from several people. If you are around friends and family suggesting you rent a house instead of buying one, here’s a strong point for you to put forward to them.

Take them to a coffee shop, order a cappuccino, sit down with a notepad and start calculating your rental expenditure for the next two years. Now compare it with the figures of your monthly house loan EMI for the same duration.

If you live in a metro city, the win is even bigger. Buying a new house is undoubtedly a better choice than paying for something you cannot call your own.

Another fun fact coming up. Rents tend to rise every year and you have less control over it. You had your mortgage controlled for the entire period of the loan even before you stepped in your new house.

Look for everything you need in a house

You might have imagined what your house should look like and all the amenities it should have. Yes, the wish list might be endless but “The world is not a wish-granting factory” (unless you have proven yourself to be Warren Buffet).

Nevertheless, the statement wasn’t made to upset but to introduce you to a practical tactic which will help you. It’s not always wise to look for everything you need in the house you are buying. You will find yourself exceeding your budget significantly.

Pick out the top 5 things which you need in a house and this is definitely a more viable alternative than going bankrupt.

Buy a house directly from the previous owner

You are going to be spending a lot of money and you are bound to be paranoid about certain things. Let’s bust another cranky myth for you.

You should always prefer buying from a reputed builder than an individual seller. The list of benefits is long but let’s discuss a few.

You can be carefree of the registration process and the excruciating paperwork as your builder will take care of it and you don’t have to do the running.

You can always claim for anything that was promised but hasn’t been offered. Maintenance and repairs are also taken care of initially.

Reputed brands stick to their date of delivery and all your loan related timeline can stay undisturbed without you having to worry about re-planning the whole thing out.

Don’t let any of these myths spoil your adventurous journey of buying a new house. It’s always the right time to begin a new phase of life and have fun while doing it.