HOME BUYING MYTHS BUSTED!

Sep 02 2017 : The Times of India (Pune)
ANURADHA RAMAMIRTHAM Timesproperty

Planning to buy a home but apprehensive about taking the plunge? Fret not, as we bust a few home-buying myths
Buying a home is one of the biggest decisions a person makes in his lifetime.
Hence, we are bound to be extra cautious and many a times, get entangled in unnecessary conjectures, which more often than not can be detrimental and delay the decision-making process. Here are a few home-buying myths that we bust for you, so that you can go ahead and take the plunge.

MYTH: GST has made home-buying complicated
FACT: GST has subsumed all the indirect taxes and hence, made it easier for potential home-buyers. Earlier, due to information asymmetry, consumers were largely unaware of how VAT and service tax were calculated definitely, the entire tax calculation was too complex for lay people to understand. But now, the math is simple under-construction properties will be charged at 12 per cent (excluding stamp duty and registration charges) and no GST is applicable on ready-to-move-in homes.

MYTH: Subsidy on home loan under PMAY is not available for adult-earning members staying with parents (who already have their own home)
FACT: Under CLSS (Credit Linked Subsidy Scheme) for EWSLIGMIG I and II households, an adult earning member of the family, irrespective of the marital status, is considered as a separate household.“The person is eligible for home loan subsidy, provided he/she does not already own a pucca house under his/her name and is eligible as per the norms specified in the scheme guidelines,“ says Kalpesh Dave, head corporate planning and strategy, Aspire Home Finance Corporation Ltd.

MYTH: RERA covers all real estate projects
FACT: RERA covers only those projects that are either 500 square meters or have eight units or more. It is also applicable only to projects for `sale' and it does not cover lease agreements, redevelopment projects and projects, which have received a CC. “The only exceptions are leases that extend over a 90-year period or leases that have the same benefits of sale rights,“ says Sachin Sandhir, global managing director ­ emerging business, RICS. RERA doesn't cover projects that have received a completion certificate before commencement of the Act and projects consisting of renovation repairre-development (that do not consist of new allotment of any apartment plot).

MYTH: Developers shy away from affordable housing
FACT: The slowdown in sales in the premium segment of the market and the government's focus on affordable housing have made developers look at budget homes with a positive intent. Also, since there has been a historic deficit of affordable housing projects, a move like this makes eminent business sense.

MYTH: Renting is better than buying
FACT: “If you are sure of the city that you would be living in, buying your own home is a better option due to the appreciating property prices. It is always better to pay EMIs over monthly rents,“ says Bipin Kumar Singh, a home-owner.

MYTH: Monsoon is not the right time to invest
FACT: “If you are looking at a resale property, then monsoons are an ideal time to visit the property site and invest, as one can gauge the pain-points in the apartments like seepage, water logging, etc, which can help you take an informed call,“ says Ramkumar KM, a home-owner.

MYTH: Metros are still the best places to invest
FACT: “A fundamental real estate investment mantra is that emerging localities are preferable to established and often saturated ones,“ says Anuj Puri, chairman, ANAROCK Property Consultants.