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E Homebuying Myths vs. Reality : Busting Common Misconceptions | Sonawane Group

Homebuying Myths vs. Reality
Busting Common Misconceptions

Updated on: March 16, 2025

🏡 Meet Rahul & Priya: First-Time Homebuyers

Rahul and Priya, a young couple from Kalyan, Thane, always believed renting was better than buying. They had heard that buying a home meant years of financial struggle and hidden costs. But was it true? Let’s uncover the reality behind common homebuying myths and help you make an informed decision.

🔎 Common Homebuying Myths Debunked

highlight_off Myth 1: Renting is always cheaper than buying.

Many believe renting saves money compared to homeownership.

check_circle Reality: Homeownership builds equity and long-term wealth.

While renting may have lower upfront costs, buying a home allows you to build **equity** over time. Real estate appreciates, making it a **profitable investment** in the long run.

highlight_off Myth 2: You need a 20% down payment.

Many first-time buyers think they must save 20% of the property’s cost.

check_circle Reality: You can buy a home with as little as 10% down.

Various home loan options allow buyers to **purchase with just 10% down**. Additionally, **PMAY subsidies** can make homeownership even more affordable.

highlight_off Myth 3: Your credit score must be perfect to buy a home.

Many believe only those with a flawless credit score can purchase a home.

check_circle Reality: Various loan programs accommodate lower credit scores.

While a higher credit score can secure better loan terms, numerous programs are designed to help those with moderate credit scores. Lenders consider the overall financial picture, not just the credit score.

highlight_off Myth 4: It's cheaper to build a new home than to buy an existing one.

There's a common belief that building a new home is more cost-effective than buying an existing one.

check_circle Reality: Building can involve additional costs and longer timelines.

While new construction allows for customization, it often comes with hidden costs, such as permits, landscaping, and potential delays. Buying an existing home may offer more predictable costs and faster move-in timelines.

📊 Quick Comparison: Myths vs. Reality

Myth Reality
Buying a home is too expensive. There are affordable EMI plans that make homeownership easy.
Only rich people can invest in real estate. Even middle-class buyers can invest with proper financial planning.
Renting is better than buying a home. Homeownership builds long-term equity and financial security.
You need a perfect credit score to buy a house. Many banks offer home loans with flexible credit score requirements.
Property prices always go up. Real estate markets fluctuate, but well-researched investments grow in value.
Under-construction properties are risky. Choosing an RERA-approved project ensures legal protection and timely delivery.
A bigger home is always better. The right-sized home based on your needs and budget is the best choice.
Real estate investment is only for experts. With proper guidance and research, anyone can invest wisely.
New homes are always more expensive than resale properties. Many new projects offer better financing options and lower maintenance costs.
Location is the only factor that matters. While location is key, factors like builder reputation, amenities, and resale value also matter.

🤔 Frequently Asked Questions

📌 Is renting better than buying?

It depends on your long-term financial goals. Buying builds equity, while renting provides flexibility.

📌 What is the minimum down payment required?

Most home loans allow 10% down payment, and government schemes like PMAY offer subsidies.

📌 What is the ideal credit score to get a home loan?

A credit score of 750+ is ideal for easy loan approval, but banks also offer loans for lower scores with higher interest rates.

📌 How can I check if a project is legally approved?

Verify if the project is RERA-approved, check the title deed, land records, and legal clearances before investing.

📌 Can I buy a house with a lower salary?

Yes! Many banks offer home loans with low EMI options and joint loans can also increase eligibility.

📌 What are the hidden costs when buying a home?

Additional costs include registration fees, stamp duty, maintenance charges, GST, and interior costs.

📌 How long does home loan approval take?

Home loan approvals generally take 7-15 days, depending on your documents and bank policies.

📌 Can NRIs buy property in India?

Yes! NRIs can invest in Indian real estate under FEMA regulations and take home loans from Indian banks.

🏡 Ready to Buy Your Dream Home?

Explore 1 & 2 BHK homes in Kalyan with the best financing options.

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