Real Estate is guided by many clichÃ©s. We have made a sphere of some beliefs around us that we consider before buying any property. Some of them are true while some of them are plain nonsense, yet we believe them because of their widespread reputation. Let us know the truth behind these real estate clichÃ©s.
1. Location, location, location
What the fuss is about the location of the property? Every realtor and the builder would sell his property advertising its prime location. When you plan to buy a house, your relatives would advise you to consider the location. So basically, the importance of location is paramount. And that is not a myth. The appreciation of the property depends on the location, the better the location, more would be the selling price after a period of time. Even if the market crashes and the prices of the property falls, the projects at the prime locations are least affected. Also, the neighbourhood defines how easily a property would be sold. After all, no one likes to buy a great house in a bad neighbourhood. So, do consider location before buying a house.
2. Price your property well to sell
Some people price their property too high to leave a room for the negotiations. As a result, they do not get an offer. The property remains in the market for a longer period of time and then it becomes tough to sell it. Some people keep the price of the property lesser to get many offers and enthusiastic buyers. It may work in some cases when a war to purchases starts among the buyers. But the plan may backfire badly when they get the offers lesser than quoted price because todayâ€™s buyers do not purchase at the sellerâ€™s price.
3. Itâ€™s not the price of the house, itâ€™s landâ€™s price
While we may think that the value of our house is increasing with time, it is actually not. With time, the house, its walls, electric circuits, plumbings deteriorate and the value decreases. That is the reason homeowners renovate the house to sell better. The old houses are not bought because they need high maintenance. So, when someone says you that the price of the land appreciates and not the house, do believe him.
4. The view from the balcony (Sea facing??)
Similar to location, the face of the house also matters. If your home is sea facing or mountain facing, it sells better than other houses in the locality. No one likes to wake up and go to the balcony to see the fish market. But then the million dollar view matters more in the luxury sector as compared to the affordable sector. Moreover, you can always convert your house into a staycation or homestay to reap the benefits for a longer period of time.
5. There is no such thing as too much real estate
Owning a house is every manâ€™s dream. But if you have your own house, and looking for something to invest into, buy another one. Real estate is the best investment when it is for a long term. The returns are less than the stocks but you cannot rent a stock, right? Moreover, the appreciation is better than the gold too. The majority of the millionaires of the world invested in the right property and real estate is the reason behind their success. If you have significant money in hand, buy a house or a land.
6. Donâ€™t wait to buy a property, buy property and wait
The real estate market is always fluctuating and there are a lot of variables. There is no perfect time to make an investment, or should we say; now is always the best time to buy a real estate. The real estate investors should wait for a considerable period of time before selling the property. They can earn from the real estate even in the sleep and sell it when the market is skyrocketing.
So, now you know the reason behind the popular sayings in the real estate. Stay informed to make the right decision.