While buying a property, the process doesn’t just end with down payments and EMIs. Developers often throw in some extra charges when the buyer is least prepared for it, let alone expecting it. And eventually, buyers find themselves paying more than what was initially quoted.
If you have been planning to buy a house, this article is for you. We have exclusively focused on the hidden costs that are involved during buying a house.
- Processing Fees on the Home Loan
A certain fee is needed to be paid to processing of a home loan application. This fee covers basic administration costs and costs incurred by the lender to carry out credit checks, document verification, etc.
- Registration and Stamp Duty
Registration of a new property comes with a price tag. This generally costs around 5% of the property’s total value. Also added is the lawyer’s fee. Stamp Duty usually varies between 7-8% of the property value. Also, 1-2% of the property value has to be paid as registration fee to the court. However, these figures may vary with each state.
- Interior Design
No home is complete without a proper interior decoration. However, the cost of interior decoration is not covered by the builder. Thus, the owner can spend limitlessly for decorating the home. Plumbing, electrical work, painting, furniture, additional design,
- Parking and Advance Annual Maintenance Charges
Did you know that the house buyer has to pay a fee to own parking space? This amount increases, depending on the location of the property and the number of vehicles owned. Along with this, the buyer also has to pay a maintenance fee.
- Packers and Movers/Cost of Relocation
The process of moving can be strenuous, both physically and financially. Hiring packers and movers don’t come cheap. They charge a huge sum for their service.
- Charge for location preference
Preferential Locality Charge is charged by many brokers to book a house in a prime location. For example, penthouses built on top of buildings and villas with gardens or a lake view have very high PLCs. Generally, premium projects tend to charge PLC.
The excitement of owning a house is often crushed by the burden of bills to be paid. Actually, these costs are not hidden per-se, they are quite forgettable in the excitement.