Real estate decisions rarely happen in a vacuum, it takes place in neighbourhood gossips, social media threads, and half-remembered conversations at family gatherings. Over time, some of this advice hardens into belief, and unchecked belief can cost a buyer negatively. The truth is that not every commonly accepted idea about home buying myths holds up under scrutiny. Understanding what a fact is and what is fiction helps buyers approach the market with certainty rather than confusion. Here is a closer look at ten persistent real estate myths and the reality that sits quietly behind each one.
Myth #1: You Need a Huge Down Payment to Buy a Home.
Myth: Home ownership demands years of saving and an enormous upfront sum.
Reality: This is one of the most common home loan myths spreading among aspiring buyers. As per RBI guidelines, the minimum down payment for home loans is 20% of the property value, with lenders funding up to 80%. Several banks and housing finance companies go further, providing tailored schemes for salaried individuals and first-time homebuyers. A homebuyer do not need to wait indefinitely; they need to plan strategically.
Myth #2: Renting Is Always Cheaper Than Buying.
Myth: Paying rent is the smarter financial move in every scenario.
Reality: Renting carries lower short-term costs, but buying a home builds equity with every EMI paid. As 99acres notes in its homebuying guidance, the final acquisition cost of a home including stamp duty, registration, and GST on under-construction properties can rise 15% to 30% above the base price, which means buyers must budget carefully. However, once that cost is absorbed, ownership becomes a long-term appreciating asset. Rent, regardless of how consistently it is paid, builds no equity whatsoever.
Myth #3: Property Values Always Appreciate.
Myth: Real estate is an assured profit-making engine.
Reality: One of the most typical misconceptions about the housing market is that property values only go upwards and never depreciate. Market performance is tied to location, infrastructure expansion, demand cycles, and wider economic circumstances. A project in a micro-market with poor connectivity or hindered development can stagnate or devalue. Smart buying supported by research rather than speculation generates real returns. Real estate facts are rarely as straightforward as "prices always rise."
Myth #4: The Best Time to Buy Is When Prices Fall.
Myth: Buyers should hold back until they catch the market at its lowest point.
Reality: Timing the market perfectly is a strategy that even seasoned investors struggle to execute. For most homebuyers, especially those buying a house in India for the first time, factors such as long-term affordability, financial capability, job stability, and intended tenure matter far more than chasing a price dip. Waiting indefinitely can mean missing good projects, rising rentals, and compounding opportunity cost.
Myth #5: Approval of a Home Loan Means the Property Fits the Budget.
Myth: If a bank sanctions the loan, affordability is guaranteed.
Reality: Bank approval showcases a buyer's repayment caliber and does not account for monthly maintenance costs, property taxes, society fees, or lifestyle expenditures. Additional charges at various stages of the purchase can add lakhs to the budget. Homebuyers who push to the maximum sanctioned amount often find themselves in a situation of being house-rich but cash-poor. True affordability needs a holistic standpoint, not just an approved loan.
Myth #6: Ready-to-Move Homes Are Always Better Than Under-Construction Properties.
Myth: Under-construction projects are too risky to be worth considering.
Reality: This is one of those property investment myths that discourages buyers from genuinely good opportunities. RERA-compliant projects from developers with a verified delivery record offer meaningful advantages including better entry pricing, phased payment plans, and appreciation potential between booking and possession. Housing.com, which hosts verified listings across RERA-registered and developer-listed projects, reflects how transparent the under-construction segment has become for buyers willing to do their homework.
Myth #7: Buying a Home Is Only for End Users, Not Investors.
Myth: Residential real estate is a poor investment vehicle.
Reality: Strategic residential property investment, notably in emerging micro-markets with infrastructure growth, can generate both consistent rental income and long-term capital appreciation. The idea that residential properties belong only to end users is a common homebuyer mistake that has caused many investors to overlook entire asset classes. Portfolio diversification into real estate is a well-established wealth-building strategy across income segments.
Myth #8: Online Property Listings Cannot Be Trusted.
Myth: Digital real estate portals are unreliable and tricky.
Reality: The real estate ecosystem in India has undergone significant transformation. Portals like Housing.com and 99acres now present verified listings, virtual tours, RERA registration information, and developer credibility in one place. Housing.com and 99acres serves millions of users across 40 cities and features owner-listed, broker-listed, and builder-listed properties with verification badges. A buyer who dismisses online research loses access to one of the most powerful tools available.
Myth #9: Location Doesn't Matter if the Property Is Good.
Myth: A well-built apartment guarantees good returns regardless of where it sits.
Reality: Among the most consequential home buying myths a buyer can carry into the market, this one does perhaps the most lasting damage. Location remains the single most powerful driver of property value. Connectivity to employment hubs, proximity to schools and healthcare, planned metro or road infrastructure, and neighbourhood social infrastructure all determine appreciation potential. A well-constructed flat in a disconnected or underdeveloped location will consistently underperform a comparable unit in a well-linked corridor.
Myth #10: Real Estate Investing Is Only for the Wealthy.
Myth: Property ownership is a privilege reserved for high-net-worth individuals.
Reality: The availability of home loans, affordable housing schemes, flexible payment plans offered by developers, and the growth of emerging micro-markets across Tier II cities have collectively opened up real estate to a much wider buyer base. For buyers exploring a first-time homebuyers guide, the entry point into the market is far more accessible today than it was a decade ago. The barrier is more often mindset than means.
Expert Tips for First-Time Homebuyers.
Steering in the property market becomes significantly easier when buyers engage it with the right property buying tips as a foundation.
- Emphasize long-term affordability: A home that stretches finances to the limit rarely delivers peace of mind. Monthly EMIs, maintenance costs, and lifestyle expenses should all factor into the final budget calculation.
- Verify RERA registration: Checking the project on the respective state RERA portal takes minutes and reveals far more about a developer's compliance and project status than any brochure ever will.
- Research the developer's track record: Past deliveries, construction timelines, and buyer reviews offer a realistic picture of what to expect, and this step is far too often skipped by first-time buyers.
- Consider future infrastructure developments: Planned metro lines, ring roads, and upcoming commercial developments in a target micro-market are strong signs of future appreciation potential.
- Compare multiple projects before deciding: Decisions grounded in options rather than impulse lead to better outcomes, both financially and in terms of long-term satisfaction.
- Seek expert guidance when required: When documentation and legal aspects of a transaction feel complex, engaging a registered real estate advisor or legal expert is not an added expense. It is a sound investment in getting the decision right.
Conclusion
The gap between housing market facts and commonly believed assumptions is wider than most homebuyers anticipate. Decisions made on the basis of inherited wisdom or social media commentary, without any grounding in current real estate facts, carry real financial consequences.
Whether someone is analysing the market for the first time or returning after being years away, filtering out myths and focusing on verified, research-backed information makes the process more feasible. A well-informed homebuyer does not just avoid common homebuyer mistakes, they build a foundation for outcomes that hold up long after the possession.