Top mistakes homebuyers and investors make in India: Tips from real estate strategist on how to avoid them

Buying property in India is often looked upon as a safe, long-term investment, whether for self-use or for saving purposes. Yet, despite the emotional and financial significance of buying real estate, many homebuyers and investors often make mistakes that cost them, dearly.

Since the money involved is huge, this leads to a lifetime of regret and loss. In a market shaped by rapid urbanisation, regulations that keep changing, prices that fluctuate, any decision taken in a hurry can have an impact that could last a lifetime. One of the most common errors is prioritising price or location hype over legal due diligence. Unbelievable discounts, beautiful looking homes promised in brochures, or indication of future infrastructure often overshadow basic and extremely important checks such as land titles, approvals, and the builder’s track record.

Another frequent mistake is underestimating the total cost of ownership. Beyond the base price, expenses like stamp duty, registration, GST, maintenance charges, and interior work can significantly strain budgets. Investors, in particular, tend to overestimate rental yields or short-term appreciation without factoring in market cycles and demand realities. Many buyers also ignore the extreme importance of timing, financing structure, and exit planning, assuming property values will only move upward.

A balanced and safe approach is understanding the difference between a secure asset and a long-term liability in India’s complex real estate landscape.

In an exclusive with TOI Pyush Lohia, real estate strategist, entrepreneur, and Director of Lohia Worldspace, elaborates on the common mistakes most Indian home buyers and investors commit. "Buying property in India still feels like one of the most important decisions a person makes, and it should be treated that way.

Over the years I have sat with hundreds of buyers and investors, and the same set of errors keeps repeating.

When the market is busy, people rush. When it slows, they panic. Both reactions can cost you dearly."Some of the mistakes as described by Lohia include—Ignoring basic checks"Skipping basic checks is the number one problem. I cannot stress this enough: don’t take brochures or slick presentations at face value.

Go to the site. Ask to see the title documents. Check that the project has the necessary approvals and RERA registration where applicable. A clear title and proper approvals are simple things that protect you from complicated legal fights later. I remember a family who booked a flat because they loved the model apartment.

Only later did they discover a portion of the land was under dispute. That discovery turned excitement into a long, stressful wait," he says.Legal paperwork can be a minefield if you are not careful. Many buyers treat contracts as formalities and sign before a lawyer has reviewed them. Sale agreements sometimes contain clauses that transfer unexpected costs to the buyer or allow the developer wide discretion on project changes. Always have a lawyer look at the agreement, the builder-buyer memorandum, and the sale deed draft. Verify that taxes, stamp duty and any encumbrances are settled and documented.

Buying without this step is like walking blindfolded into a negotiation.

Having a wrong overview of the total costAccording to Lohia, "Underestimating total costs is another frequent mistake. People calculate the property price and forget about the extras. Stamp duty, registration charges, GST on under-construction units, parking, club membership deposits, utility connections, and interior work add up quickly.

If you are planning for rental income, factor in maintenance and vacancy periods. I once advised a buyer who had set aside funds only for the sale price; within months she realized the monthly outflows were much higher than planned because maintenance and property tax were not part of her original calculation.

"Over-leveraging and being caught in the loan trapOne mistake that can cost dearly and that often goes ignored, as per Lohia, is over-leveraging.

It is a silent danger. Banks lend generously these days, but borrowing the maximum can be a trap. An EMI that is manageable today can become unbearable if your income falls or interest rates rise. Keep EMIs within a sensible portion of your monthly income and maintain an emergency fund. "I have seen well-placed professionals who assumed promotions or bonuses would cover higher EMIs.

When those didn’t materialize, they were forced to sell at a loss or defer essential expenses.

Buy within your means and avoid stretching finances just to buy a slightly nicer unit, "he adds.Trusting the builder blindlyTrusting builder promises without verification has ruined many deals. Marketing often highlights amenities and on-time delivery, but the reality can differ. Developers who have a good track record and completed projects are worth their weight in gold. If possible, visit an earlier project by the same builder and speak to residents.

"If you cannot do that, dig into past delivery timelines and any litigation history.

Experience tells me that a reliable developer is the single most important factor in avoiding unexpected delays and disputes," says Lohia.

Emotion is fine, but make practical checksBuying purely on emotion is common and understandable. A beautiful kitchen, a stunning view, or a gated community with a great clubhouse can make you feel sure you have found home.

Emotions, however, should not replace practical judgment. Think about commute times, access to schools, healthcare and daily conveniences. A scenic location is lovely until you have a two-hour commute each day or find that the nearest hospital is far away.

Pause before you book if you feel swept up. Visit at different times of day to get a real sense of the neighborhood.Not doing enough researchSpeculation without research is another area where many investors stumble.

When a new infrastructure announcement is made, a certain locality often becomes hot overnight. That heat can cool just as quickly if the project timeline slips or if the market shifts. Real estate is generally a long-term game. "If your plan is short-term profit from flipping, you need a deep understanding of local absorption rates, supply pipeline and realistic resale demand.

I advise clients who are looking to invest to focus on fundamentals: rental yield, expected holding period and local economic drivers," he adds.

Look from a long-term perspectiveFinally, plan for the long term and keep lifestyle in mind. Property is not only an investment; for many it is a home. Think about future needs. A growing family will need more space, older parents may require ground-floor access, and changes in job location can make a big difference to daily life. Also, understand how maintenance is handled in the building or society. Poorly managed maintenance can erode the value of a property over time.To sum up, one should do the homework, get a lawyer involved early, budget beyond the sticker price, borrow conservatively, verify the builder, temper emotional impulses, and research before speculating. Real estate in India offers great opportunities, but the difference between a good outcome and a painful mistake is often simple care and patience. Ask questions, take time, and treat the purchase with the same rigor you would apply to any major long-term commitment.