Buying a home or apartment is a dream come true for many. For many individuals, it is an important achievement in life. To be at that stage many would have make all possible efforts to save amount for their down payment. But lately, they realize that there are other fees and charges involved.
But very less individuals will be aware that there many other costs and fees involved in buying. The fees and costs will vary depending on the value of your property as it is charged percentage wise.
Individuals who are planning to own a home soon should be aware of these costs and special arrangements should be made to pay them as most of the time these payments should be made in one shot.
1) Registration Cost
The registration cost will depend on the value of the property. Usually, registration fees and stamp duty will vary between 7-10 per cent.
Most of the time say about 5-7 per cent is considered for paying stamp duty, the rest is considered as registration fees and it is payable at the court.
There are other miscellaneous expenses such as advocate fees, notary fees etc.
2) Maintenance deposit
In a case of an apartment, many builders charge an advance deposit of maintenance. Now this can vary. There were reports that nowadays builders charge maintenance advance for 10 years.
The trend generally is 1-2 years, and we cannot be sure if the report is correct. This can be a huge amount if there are high-end facilities provided by the builder.
3) Cost on interiors
Builders will just provide you with walls. One needs to be prepared to pay an extra amount for interiors. The cost of the interior will largely depend on the quality of material you opt and designs you choose.
4) Parking area
Yes, parking area of an apartment is not considered along with property amount. Some builders say the amount excludes the amount considered for parking area.
One has to confirm whether parking area is included in the value of the property. The amount may vary with area allotted for parking your vehicle.
5) Loss due to delay in projects
Delay in projects are common, this can add to your worries as well as to pockets. If the property is bought on a loan, you will not be eligible for tax rebates applicable on home loans.
You will have to wait to rent out the property and earn income on that.
6) Check for floor rise
Often when builders sell, they quote the base price. However, there could a floor rise cost, which you have to pay additionally beyond a certain floor. Generally, it could be above the 3rd or the 4th floor. So higher the floor greater the cost.
7) In case of home loans
In case of home loans, check the interest rates, processing fees and other charges. A small variation of even 0.05 per cent in interest rates could mean a lot, since these are large sized loans.