With real estate investment on the boom, the number of people inclining towards the same are shooting up, day by day. Surely it seems an attractive offer and the returns are lucrative enough to lure people towards it. But, many a populace end up getting duped in their tryst with realty investment. Why you ask me? Well, a multitude of realty agents and sellers tend to utilize the booming trend in real estate investment for their profit, churning out lies to make the investors believe in something they should not. Obviously, greed gets the better of most of the people.
This happens all over the world, especially in India. Given the fact that India’s realty market has very high potential, people looking to invest in various Tier-1 and Tier-2 cities across the nation should be cautious of agents and sellers they approach. Considering the example of Mysore in Karnataka, India, the demand for sites and plots in Mysore are on a record high as it is a Tier-2 city. Considering the fact that Mysore has exhibited an increase in growth trend by a staggering 44% in the last 2 years, properties in Mysore are selling like hotcakes.
If you are a potential real estate investor in Mysore, there are thousands of realty middlemen who can help you in search of your dream property. Before you take the giant leap of investing, there are some key points to be taken into consideration.
Take a look at the 5 greatest lies that agents or sellers use to lure potential investors into buying their no-so-valuable property.
• “This property is in a prime area, hence the best choice of investment” – One of the most commonly used and found lies has to be this. Often this tactic has trapped umpteen number of people into buying less valued properties for a much higher price. The phrase ‘prime area’ has so much weight-age and influence that, it is vastly used for this purpose. What the potential investor should do at that time is just nod to the statement, come back home and do some research about the aforementioned property, do a self-assessment about it and then take a decision. Talking to other agents and people in the neighborhood of the property also helps.
• “Other potential buyers have seen this property, it is better to pay up the advance immediately to book it in your name” – Surely, a property before being sold is shown to many a potential buyers. But it does not mean every other investor has eyes on the same, unless it is being sold at a throw away price. Just because the property seems good and is within your budget does not mean you pay the advance amount upfront, unless you do not care about returns. Smart people usually take time to research and analyze about the value and future trends of the property that they wish to buy.
• “This property is ideal for you so buy it before anybody else does” – Do not let some stranger of an agent or a seller tell you what is best for you, unless he is a friend or a family person. Nobody in this world can know exactly what kind of investment is best for, apart from you. So, put your foot down on the pedal and decide for yourself. If the said property meets all your requirements, only then should you consider opting to invest in it. Otherwise, do yourself a favor and reject the offer, in order to save yourself from regretting in the future.
• “This is an up-and-coming neighborhood” – Alright, we are getting to the interesting part of this article. One of those classic dialogues that grabs everyone’s attention instantaneously has to be this. This specifically applies for those who intend to buy a property and re-sell it later. If you are such an investor, do not let this specific lie take you down. Typically, plots and sites on the outskirts of any city will be marketed as an up-and-coming neighborhood as it has the potential to be a full-fledged neighborhood in a span of time. But you might have guessed it by now already, not all properties on the outskirts of every city grow up to such levels. It would be wise of you to do a background check on the value trends in that specific location, nearby corporate and industrial institutions and likewise that are bound to increase the value of the surrounding locality, and the financial scope for the property in the future.
• “This is the least price this property can fetch anyone so hurry up” – This tactic can surely fool any novice investor and is employed by greedy realtors, everywhere around the globe. For the ones who have knowledge on property value trends in the market, they can surely tell you price of any property remains unpredictable at all times. No wonder people call realty investments a gamble and are definitely subjective of market risks. No human or software can possibly predict the accurate value limits of any property, keep this in mind. Do not be fooled by people telling you such lies, do your bit of homework and take your decision before departing with your hard earned money.
• “I know the ins and outs of real estate market so I am the best agent in this city” – Knowing the ins and outs of real estate does not make any one individual the best in the market. Do not be fooled by self-appraisal. Nobody can be perfect in this entire world, every individual makes mistakes at one point of time or the other. Talk to people and find out who the best realty broker is around the town. True credibility of a person holds true only when others talk high of him, not himself. Also, a true realty expert always lets his work talk and not his tongue. Be wary of such people.
Having given a highlight of some of the greatest lies ever told by realtors, it is not implied that every realtor across the world employs such delirious tactics. It is only implied that people often end up falling prey to such greedy lot. Necessary preventive care has to be taken by all potential investors to choose the rightful realty agents or sellers. After all, it is better to be safe than sorry.