Considering additional costs before buying a Property
Buying a house is one of the biggest investments you will make in life. It can be very exciting, but at the same time, you are probably aware that there are many costs associated with home buying. We have all done it. We have all ignored the small print and only focused on the price. We have all bought something that wasn’t quite what we needed, purely because we were too caught up in the low price. There are fees and expenses that can be confusing for first-time home buyers to understand. The costs of home ownership go beyond the mortgage payments and monthly fees for utilities and cleaning supplies. In fact, most people underestimate how much the hidden costs of owning a home will really cost them.
Below we outline the 7 hidden costs, you should not ignore when buying a house:
1. Stamp Duty & Registration Fees
It is a tax that must be paid when you buy property in India. The stamp duty is applicable on the transfer of land or building which involves a financial consideration. It is generally payable by the purchaser of property. Stamp Duty is a tax levied on the price of the property purchased. The stamp duty charges on real estate are governed by state laws and vary from state to state and ranges between 5-7%
Registration fees for a new house in India can be paid by the buyer or seller. The registration fee is charged by the government to maintain records of property ownership. Registration fees differ from state to state, but are generally within a range of 1% to 2% of the property value
The maintenance deposit is the amount of money that you need to pay as a security deposit, when you book your house. The amount varies from time to time and from place to place. Builders ask for anywhere between 2-10 years, depending on the city, the locality, the type of property and the amenities on offer. This nominal amount is kept aside by the builder, in case there are any damages or in case you break the agreement at any point during your stay in the house. Usually, some kind of insurance policy is also taken by them against damage and wear and tear caused by you to the property.
Till date, there were no laws that specified how much money should be paid as a maintenance deposit. However, now, with a recent amendment in the Real Estate (Regulation and Development) Act, 2016 (RERA), it has been made mandatory for builders to mention it in their brochure or agreement papers prior to booking a flat. In addition, builders will have to refund this amount within 21 days of receiving your cancellation notice given for any reason.
In existing buildings the maintenance is payable to the association which will be used against damages if any.
The parking space charges on your new house in India is not something to ignore. Parking Space Charges are directly proportional to the cost of construction. Parking Space Charges have increased as building costs have gone up. The cost of construction has been increasing steadily over the years and so have parking space charges as well. Amount of Parking Space charges varies from city to city and location to location depending on different factors like:
The size of the parking area
The location of the house
The cost of construction and other factors
Parking space costs usually start from around Rs. 1 lakh and can go up to Rs. 25 lakhs.
Read more: https://nestcon.com/considering-additional-costs-before-buying-a-property/
