Buying a house? Few hidden costs that you should not overlook

Do you often go out shopping? One thing that can be commonly observed is that almost everybody checks the measurement of everyday consumption items like vegetables, fruits, among others. However, the same concern mostly remains missing when investing in one of the most expensive things of lifetime, i.e. house. Buying a house is one of the biggest investment of our lifetime. However, given the enthusiasm of buying a house, one usually overlooks or let go of the minute details and additional charges incurred like registration charges, maintenance deposit, brokerage, parking space fee, interiors, etc…
Due to this, the final cost of a finished house usually ranges 15-20% above the price quoted by the builder. Therefore, it becomes imperative to get a clear picture of the total cost so that you can plan your finances well before making the big purchase. Here we bring you the list of extras that a buyer will invariably need to accommodate in his/her budget:

1. Stamp Duty and Registration fee

In order to get the house registered under his/her name, the buyer has to pay stamp duty to the state government. These charges may vary from state to state from 5-7%, and the registration is only considered complete once the stamp duty is paid. Alongside this, the court also charges a registration fee for the final legal agreement between the buyer and seller indicating change of ownership. All of this may not seem like a small amount but sums up to a lot.

2. Maintenance Deposit

In existing buildings, maintenance deposit is usually charged by the society members in case of any damages that might occur in the future. This usually comes under common amenities, parks and lightings and generally depends on society and area. For instance, maintenance is high in localities such as Bandra and Cuffe Parade and lower in places like Borivali.
3) Parking space

With shortage of land in our country, especially in the big cities, parking space is always a concern. The parking fee has to be paid to the seller and comes as a separate cost. In case, you refrain from paying the fee, the seller has all rights to sell it to another member of the society.

Besides this, Interiors, Preferential Locality Charge, Goods & Services Tax (GST) are some of the other home charges that can be avoided. Thus, arriving at a proper estimate of the cost and making an informed decision isn’t going to be difficult if one considers all the obvious costs.



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