Buying a home is a huge investment. You end up paying a lot more than the price tag of the property if you haven’t researched the details. This often results in shortage of funds that you’ve saved up to pay for your dream home.
The Ignored Costs
While searching for a dream home, you might look for the essentials: locality, proximity to basic services, commercial value, and the overall condition. However, the hidden costs that come with the house are often ignored up until the final settlement is initiated. For this reason, aggregating the costs associated with a property purchase is crucial to reducing your financial worries in the future.
Given below are the hidden costs and how they can affect your overall budget.
1. Registration Costs: The first thing that any individual does after buying a property is its registration at the local registrar’s office. Registration fees are a huge part of the total cost involved behind a home. This can add up to as much as 10% of the total property cost in the form of stamp duty. The registration fees payable to the court is also set at 1 to 2 % of the property cost. Apart from the stamp duty and registration fees, miscellaneous expenses like fees for the lawyers who get the job done and charges paid to the notary are also involved.
2. Parking space: This charge is exclusive to individuals who are getting a home in large residential complexes. Owning a parking space can cost you from anywhere in between Rs.2 to 5 lakh depending on the type of property, locality, and the type of parking space you need.
3. Cost of Interiors: The property you buy comes without the interiors. Getting the interiors done alone can cost you a fortune depending on the type of work you want done.
4. Maintenance Deposit: Maintenance deposits are another head of expense which eat into your savings. A heavy amount is charged by the builder initially with subsequent payments being made after regular intervals.
5. Preferential Location Charges: This charge is basically levied by the builder to provide you with a property that suits your requirements, be it in terms of the floor you want or the direction you want your property to face.
These hidden charges can raise the value of your property by a huge margin; 20 to 25% in some cases. Gaining knowledge about these charges can help you plan your finances accordingly and ensure that you do not face any undue hardships after setting your heart on a property.
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