Beware of hidden Costs while Buying a Property in Indian Real Estate Market
Buying a Property is the dream of each householder. Investing on Real Estate (Property) will be the most important investment in our life. Sometimes we (home buyers) may get the property within our budget; sometimes it may exceed the budget, so here we should have to follow some guidelines and precautions to avoid the exceeded budget. Almost in all cases the Real Estate investment will be on the upper limit of one’s financial capacity.
In this context it is often a fact that people always suffer with hidden costs and they will face many difficulties to handle the expenses (hidden costs). Rather facing such hidden costs it is better to be conscious of these hidden costs and be ready from the hidden costs from the starting. These are the most common situations that you should be know about hidden costs and be prepared from the start itself and position your money accordingly.
Cost of Registration
The registration cost of the property forms a considerable part of the whole real estate deal. In most cases the entire stamp duty and registration expenses will be around 10 to 15 percent of the property price. On the deep analysis, stamp duty is usually 5 to 7 percent of the property value. Registration costs will be around 1 to 2 percent of the property value. Apart from these two, you have to pay the legal charges, notary fees, lawyer’s fees, etc.
Cost of the interiors
There will be a clear enthusiasm in moving into a new home. Though you furnished your interiors well, you would always like to decorate you will bring some new items to make your home more beauty. It may take huge amounts, so you should have to be in conscious mood to reduce or to avoid these charges.
Due to procedural delays
Rental charges, extra interest paid on loan, tax rebate loss and project construction delays are most common things in Indian Real estate sector. It will cost at least 1 to 3 percent of the property value. So be prepared and make a proper plan for that.
There is a fashion of charging the maintenance costs in a lump sum instead of charging every month. This is normally for a long period of time generally it will be for five to ten years or more. This is an unexpected part of costs that one may face up to with all of a sudden. This is the trend that is being experienced by many developers or builders.
Cost for Parking space
From the last decade or so a style is being noticed that charging the money for the parking spaces in large residential & commercial complexes. Many buyers are feeling this as an extra portion of expenditure which can range from two to five lakhs. It is really difficult for the buyers of the apartment to pay such huge amount; it may vary according to space, location, builder and type of property. So be ready for that and make your real estate investment as a sweet memory in your life.
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