Common Real Estate Myths You Need to Know

Investing in the real estate market is certainly a pivotal decision because a huge commitment is needed in the process. That’s why most people used to do thorough market research before investing a single penny. But very often it has been found that all the knowledge that you have acquired gets overshadowed by exaggerations or myths about this sector. All these myths or false perceptions will not only provide you with inaccurate information but also create a hindrance in your home-hunting process.

In this article, we are going to debunk some common real estate myths that you should know so that you can make a wise decision regarding your property.

Myth 1. You Should be Rich Enough to Invest in Real Estate:

This is the biggest real estate myth which often dissuades people from making an investment in this sector. People can take home loans from banks or other financial institutes if they want to purchase a home. Moreover, there are numerous flexible and adjustable payment schemes that can be catered, now property investment has become easier and more affordable.

Myth 2. High risks are associated with Real Estate investment:

This is another misconception about the real estate industry. It is true that every investment involves some amount of risk. But real estate investments are less risky as compared with other investments like stocks, bonds, mutual funds, gold, etc. Due to lack of knowledge, most people believe that real estate investments are riskier, but if you have done your homework properly, then there is no reason to fear investing in a property deal. 

Myth 3. Condos are not family-friendly.

For the most part, millennials are native condo-dwellers, choosing vertical living for the convenience, amenities, and location. While older generations of Filipinos are looking for homes, more and more millennials with plans of settling down are choosing to live in condominiums. Especially since developers are now designing condos with families in mind, creating more open and green spaces and family-friendly amenities.

Myth 4. All Real Estate Agents are the same:

Not all Real estate agents have the same professional expertise in the field, whether it’s experience or knowledge, you need to choose a good agent with reputable skills. They often have access to properties that you don’t know about, and have experience dealing with the  little things that can go wrong during a transaction. Real estate agents are a valuable resource, especially for first time home buyers who tend to be overwhelmed by the logistic and emotional headaches of the whole process.

Myth 5. Purchase only when the market is good and favorable

People who have a rudimentary knowledge of economics should know that the market is never stable. If you wait for the market to pick up, you will certainly miss some valuable investment opportunities. Instead of focusing on the external parameters, you should focus on your own financial status.

Myth 6. Brand name doesn’t matter in property investment:

When people are planning for a real estate investment, they keep their focus mainly on the prices of the properties rather than focusing on the brand name and reputation of the developers. But if you want to make your real estate investment worthy, always choose a developer who holds a strong portfolio and market reputation.

Myth 7. Don’t make any investment when you are young.

Most people believe you need a lot of knowledge and skills before investing anything in the real estate market. That’s why young people should not go for any real estate investment. But in reality, the scenario is completely different. It would be a wise decision if you make a real estate investment at a young age. Since you are young you will get more working years in front of you, this means you can easily repay your home loan. 

Myth 8. Renting is better than buying.

In most markets, buying a home has become very affordable, especially if you’re planning to stay in one location for more than two years. Building equity, stable mortgage payments, and tax deductions are just a few of the reasons why it makes more sense to purchase a property than it does to rent. 

Myth 9. You need a perfect credit score to buy a house.

While having an excellent credit score does help with interest and loans, you don’t need a perfect score to be able to apply for loans.

Myth 10. A mortgage is the only expense.

You need to factor in your closing costs, furniture or renovations, administration fees, etc.

Megaworld Prime RFO’s property specialists are here to assist and prepare you all throughout your home buying journey! To know more about available Megaworld Prime Ready for Occupancy units in Manila, email us at [email protected] or get in touch with us at 0917 51 67736

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