Beware of hidden costs while buying a property June 22, 2015 Property buying, Tips and Guides 11 Comments The hidden costs while buying a property can cost you a fortune – Be aware Buying a house or a land plot is the dream of each and every householder. Investment on a property is taken to be as the most significant investment in one’s lifetime. Thus home buyers are often noticed to walk the extra mile and get the best out of the budget or even exceed the budget if they get something according to their heart’s choice. Real estate investment is one of the biggest investments that one does in one’s lifetime. Thus in many cases the investment is always on the upper limit of one’s financial capacity. In this context it is often a fact that people are taken aback by the hidden costs when they confront them and find it difficult to handle the expenses as they are often very sudden and abrupt. Rather facing the problem of bearing such hidden costs it is better to be aware of these hidden costs and be prepared from the onset of the home building programme. These are the situations that you should be aware of and be prepared from the beginning itself and arrange your finances accordingly. Cost of Registration The registration cost of the property forms a substantial part of the whole real estate deal. In most of the cases the entire stamp duty and registration costs are about 10 to 15 percent of the property price. On a closer note the stamp duty is typically 5 to 7 percent of the property value. This means the stamp duty would cost a buyer about Rs. 3, 60, 000 while buying a property of value of Rs. 50 lakhs. Registration expenses amounts to 1 to 2 percent of the property value. Apart from that you have to bear the miscellaneous legal charges, lawyer’s fees, notary fees, etc. Read more: Smart homes improves lifestyle Cost of the interiors There is an obvious excitement in moving in to a new home. However well you furnish or finish the interiors you would always like to decorate it and bring new items to even beautify your home. This requires quite a large amount of funds to do it as per one’s heart’s content. Cost incurred due to procedural delays Rental charges, extra interest paid on loan, tax rebate loss and project completion delays are very common phenomenon in Indian realty sector. These at least take away 1 to 3 percent of the total property value which was not anticipated. Maintenance Deposits There is a trend of charging the maintenance charges in a lump sum instead of charging it every month. This is normally for a long period of time like ten years or so. This is an unexpected piece of expenditure that one may confront with all of a sudden. This is the trend that is being practiced by many developers and many among the builders are insisting on it as they get a lump sum capital which they can invest somewhere else. Expenses for the Parking space Over the last decade or so a trend is being noticed about charging for the parking spaces in large residential complexes. Many buyers feel this as an extra piece of expenditure which can range from Rs. 2 lakhs to Rs. 5 lakhs. It is indeed difficult for the buyer of the apartment to pay such large amount which varies according to the space provided, locality, type of parking space etc. Before investing into any of properties of builders in Bangalore visitors can check the reviews on builders on Property scam. 11 Responses Sundhar August 31, 2015 Hi, generally in real estate there are many hidden cost. Getting awareness on hidden cost is same as getting experience in real estate. So I’m honestly saying that this article explains very neatly about all hidden costs. This definitely helps to get experience. Be confident on these areas. Reply Manish August 21, 2015 While buying a flat we have to know about the hidden cost. Mainly it is common in many companies in India. Better to ask the company people before going to book. Apart from this we need to check land details,permissions and clearance reports. Mostly need to aware while registration is going on with its hidden cost. Reply Akilesh September 15, 2015 We need to aware about the charges which is we need to pay even after buying a flat. And even some builders are offering free of amenities and free maintenance for the 5 year period. If we buy from such builder then no need to worry about the hidden costs. Reply Kailash August 17, 2015 Every home buyer should go thorough this article to get awareness on this “hidden costs”. Reply Mohan August 14, 2015 This Article helps Every Home buyer especially while buying flat about the the hidden costs like stamp duty charges, Parking and maintenance charges. Reply Shreeju July 6, 2015 I bought 2 BHK flat. At the time of booking the builder didn’t tell about the maintenance charge and extra parking charges. But at the time of possession the were asking to pay maintenance charge for the 10 years at once. So be aware of the Hidden charges and don’t forget to ask those charges. Reply Somashekar July 17, 2015 of-course, Builders says lots of things about them and their price ranges, when your going for booking, except charges like maintenance, car parking and etc. hidden charges will be there. So better take care about these hidden things before completing the deal. Reply Sushanth July 3, 2015 Hidden price is common thing in Indian real estate. i.e. specially for buying a flat, there is many hidden costs. At the time of buying a flat most of the builder didn’t say any thing about the maintenance charge and registration charge. At the time of registration they will charge lumps up amount for the maintenance. Reply Tarun July 7, 2015 Every builder will charge this hidden charges. They didn’t say about the maintenance and Car parking charges. We should ask while booking a flat, other wise we will suffer at the time of possession. Reply Bhuvan July 20, 2015 While buying a flat with the excitement we will forget to ask these hidden charges. but later before or at the time possession of flat, we will get confuse about these hidden charges. Nowadays it is common charges we have to pay to the builder. So try to ask for maintenance, car parking and amenities charges. Reply Raj November 17, 2015 Yeah, it’s a common problem with the every realtor. Initially, while booking the flat the sales guys doesn’t tell abut those services, maintenance and parking charges and all. But all of us will come to know at the time procession of a flat. That time we will helpless and we can’t do anything. Reply Leave a Reply to Kailash Cancel Reply Your email address will not be published. Name* Email* Website Comment
Sundhar August 31, 2015 Hi, generally in real estate there are many hidden cost. Getting awareness on hidden cost is same as getting experience in real estate. So I’m honestly saying that this article explains very neatly about all hidden costs. This definitely helps to get experience. Be confident on these areas. Reply
Manish August 21, 2015 While buying a flat we have to know about the hidden cost. Mainly it is common in many companies in India. Better to ask the company people before going to book. Apart from this we need to check land details,permissions and clearance reports. Mostly need to aware while registration is going on with its hidden cost. Reply
Akilesh September 15, 2015 We need to aware about the charges which is we need to pay even after buying a flat. And even some builders are offering free of amenities and free maintenance for the 5 year period. If we buy from such builder then no need to worry about the hidden costs. Reply
Kailash August 17, 2015 Every home buyer should go thorough this article to get awareness on this “hidden costs”. Reply
Mohan August 14, 2015 This Article helps Every Home buyer especially while buying flat about the the hidden costs like stamp duty charges, Parking and maintenance charges. Reply
Shreeju July 6, 2015 I bought 2 BHK flat. At the time of booking the builder didn’t tell about the maintenance charge and extra parking charges. But at the time of possession the were asking to pay maintenance charge for the 10 years at once. So be aware of the Hidden charges and don’t forget to ask those charges. Reply
Somashekar July 17, 2015 of-course, Builders says lots of things about them and their price ranges, when your going for booking, except charges like maintenance, car parking and etc. hidden charges will be there. So better take care about these hidden things before completing the deal. Reply
Sushanth July 3, 2015 Hidden price is common thing in Indian real estate. i.e. specially for buying a flat, there is many hidden costs. At the time of buying a flat most of the builder didn’t say any thing about the maintenance charge and registration charge. At the time of registration they will charge lumps up amount for the maintenance. Reply
Tarun July 7, 2015 Every builder will charge this hidden charges. They didn’t say about the maintenance and Car parking charges. We should ask while booking a flat, other wise we will suffer at the time of possession. Reply
Bhuvan July 20, 2015 While buying a flat with the excitement we will forget to ask these hidden charges. but later before or at the time possession of flat, we will get confuse about these hidden charges. Nowadays it is common charges we have to pay to the builder. So try to ask for maintenance, car parking and amenities charges. Reply
Raj November 17, 2015 Yeah, it’s a common problem with the every realtor. Initially, while booking the flat the sales guys doesn’t tell abut those services, maintenance and parking charges and all. But all of us will come to know at the time procession of a flat. That time we will helpless and we can’t do anything. Reply
