Buying a new house is every person’s dream. For most people, it is a once in a lifetime investment. Therefore, people try to push their boundaries a little while buying a house and increase their financial margin to buy that one property of their dreams. With banks and housing finance companies providing loans for the same, it is easier to own it. When the developer reveals the cost of property, there is certain cost which are hidden and developer or real estate agent withdraw from informing it initially. But later add them to the cost of property. These costs can increase the cost and therefore the budget by 25 percent. It is wise to be aware of these costs beforehand.
 
Registration cost:
These are the stamp duties which are incurred at the time of registration. They can mount from 7 percent to 10 percent, depending on the state in which you are buying the property. Many states also have provisions and relaxation for women by lower stamp duties. In addition to these, there are also fees that are payable to the court and costs 1 percent-2 percent of the total cost of property. Along with these charges, there are other miscellaneous charges as well like notary, payment of the lawyer, verification of property charges. These can alone increase the budget by 1 percent.
 
Interior costs:
Most builders only give you the structure of the house. Its interior is totally up to the buyer to suit their personal liking. These include wall paints, bathroom and kitchen cabinets, room wardrobes, bathroom fittings etc. These are not pre planned and on an average, the minimum cost for these can cost up to 1 percent of the property.
 
Parking cost:
Builders charge huge amount of money for providing parking spaces. These can range from Rs 2 lacs to Rs 5 lacs depending on the builder. After Supreme Court’s order in 2012, builders are no more allowed to charge extra for parking spaces, but they include in the parking cost in the cost of the property itself.
 
Maintenance Deposit:
This has become a trend among builders nowadays to charge the maintenance cost for as long as 10 years, at the time of buying the property. Buyers are at the disadvantage with it. They have to increase their loan amount for something they can pay yearly with taking the loan. Developers insist on it saying it gives them higher capital to play around with.
 
Interest, tax loss:
Delays in real estate projects are common due to various reasons. Delays from 6 months to 1 year are normal and the repayment of loans is generally planned around it. Delays in project lead to the rise in the price escalation and the buyer tend to pay extra interest. Also, the tax benefits for the property cannot be availed until the property is handed over to the buyer.
 
It is advised to understand these extra costs with your developer before buying the property.
 
 
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