You always have a plan when you are buying a house. The plan definitely has the monetary investments included. You need to calculate the budget, while being prepared that there are some costs that would be unplanned.
Other than down payments and monthly EMIs, a home comes with a lot of other costs. Here is a rundown of five hidden costs that are related to buying a new home.
- Maintenance Deposit in Advance
When signing the agreement, a number of builders include a maintenance deposit for a specific period of time, in advance. The timeline could be a year, two or even 10 years in some cases. Builders make it a point to collect it as these deposits offer a stable influx of funds. The maintenance cost varies according to the location and the services offered by builders.
- Property with a View
Who does not like a pool side apartment or one that is sea facing or garden facing? But, the time you make that choice, you incur additional costs. These are Preferential Location Charges or PLC in real estate terms. This increases your property price by a good 5-10%.
- Parking Space
A lot of buyers have an assumption that buying a property comes with a free parking. But this is not the truth. Depending on the location, type of property and some other factors, builders charge a good 1-5 lakh rupees for a parking space. And, if you need a space of your choice, you should be ready to shell out a few lakhs more.
- Registration and Stamp Duties
No house includes the cost of registration and stamp duties. But, when you buy a property, you need to register it and the registration comes with a price tag. Stamp duty usually varies between 7-8% of the property value. 1-2% of the property value has to be paid as registration fee to the court.
Also, include the fees of the lawyer, cover home insurance (optional), property tax, and bank inspection costs.
- Miscellaneous Costs
Some other miscellaneous costs include:
- Moving Charges
- Interior Design Costs
- Any tax reforms in the real estate sector
It is dream to buy and build your own home. Hence, when calculating the actual costs is a must. So when you sit down calculating the costs, don’t forget to include the aforementioned hidden costs. When you get down to the brass tacks of buying a property and plan your savings accordingly, you might avoid unwanted confusions and headaches later on.