Buying property is a huge milestone in anyone’s life, and something to be proud of. It’s an exciting feeling to buy an apartment and finally become a homeowner. However, there are some loopholes through which the cost of your purchase can go up. Here is a look at some hidden costs that go along with property buying:
Your salesman might suggest you buy an ‘apartment with a view’ and who wouldn’t want that? But that’s where the hidden charge comes in. The upper floors in high-rise buildings cost more than the lower floors! Apartments facing the sea, park or swimming pool cost more too. Choose wisely.
Builders advertise parking spaces as part of their amenities, fooling homebuyers into believing that parking space is part of the whole deal. But when buying the apartment, the parking space is added as a separate charge. Keep this additional cost in mind when home shopping as it can easily cost you an additional 1-5 lakhs, depending on location.
While apartment dwellers typically pay maintenance charges on a monthly basis, developers of new apartment projects are increasingly requesting for apartment maintenance fee for 1 to 10 years, upfront. Maintenance fee per square feet typically depends on the location of the property and the cost of services offered.
Ready-to-move-in apartments are exempted from Goods and Services Tax. The same applies for properties that have procured the Completion Certificate. However, GST becomes applicable on under-construction apartments. The cost quoted for under-construction homes might appear less when compared to ready-to-move-in apartments, but the tacking on of the GST at the last stage reduces the cost gap between the two categories.
Stamp Duty or Registration fee is a mandatory fee paid to the state government when changing ownership deeds. The value is different in most states, ranging from 5-7% of the property value. Keep in mind that you will also need to pay the lawyer/notary for verifying the paperwork needed.
You will also need to keep interior designing costs in mind. This could include extra for electrical, plumbing, paintwork, fixtures, furnishing, etc., depending on your own unique needs. Other than this, there are the movers-and packers to consider too.