5 COSTS TO CONSIDER WHEN BUYING YOUR HOME

Introduction

Buying a home of your dreams is a great driving force for most families, more so in India. However, as wonderful the idea sounds, it is a big step since it involves a heavy financial commitment. So it is absolutely important that there is enough time spent researching on the properties that are of interest to you. In India, investing in real estate is one of the most lucrative and sought after investments that people across different economic strata pursue diligently. It is also the most expensive investment that consumes a large portion of finances. So it is absolutely critical to plan your budget to

Five costs to consider when buying your Home

. Property with a View and Location: There is an extra charge involved when you buy a property in a specific location, specific floor, and a view. In high-rising buildings, you pay more as the floor count rises for the view it offers. A garden view will cost less than a lake view for example. However, there are no fixed rates and will differ from builder to builder depending on a number of factors.

. Cost of Registering the Property: When you purchase a property, you have to take into account the stamp duty and the registration charges you have to pay against your property. Stamp duty is approximately about 5% to 7% of the property value, though this value may differ across states. A registration fee, about 0.1% of the total property cost is also paid because of the change of ownership.

. Property Tax: You also need to pay a property tax for your property to the government that varies across states. A property tax is also proof that the property is registered in your name.

. Maintenance and Parking Charges: You will have to pay the developer a separate amount towards maintenance including additional costs for parking. A covered parking will cost more than the open parking. This is especially crucial in residential complexes where it is easier to have marked parking lots to avoid confusion. Maintenance charges will vary depending on the type of property and the facilities that come with it. For example, a gated community or an individual home will have different maintenance costs.

. Cost of Interiors: Did you consider the cost of doing up your interiors once you buy the property? Interiors will cost an additional amount depending on the extent of furnishing and customization you plan to do in the house or apartment.

Over and above everything else, there are also relocation expenses that can get easily missed out when planning for the bigger expenses. As a smart investor, plan your finances with at least 25 percent expenses over and above the budget you have planned for buying your property. It is also good practice to make a list of expenses that you will incur and speak in length to the builder about the additional costs you will incur.