additional costs while buying

The actual price of your home is not the only cost involved when buying a home. There are multiple 'hidden' price tags associated with house purchase that you need to plan for well in advance….to avoid last minute surprises.

Some of the additional costs while buying a house are listed below. While all of these may not apply to your situation, it is a good idea to be aware of them.

Property Valuation charges

Getting property valued is an important step while buying. This not only tells you the actual worth of property under consideration but also lets you know if you are buying at the right price. Even the bank/HFC may require a valuation to be performed on the property, before it can approve your home loan application. So, budget in the cost for property valuation when purchasing a home.

Legal fees

Before you purchase a property, you need to have a title and a document search conducted by a competent advocate. This verification would involve a legal fee to be borne by you.

Registration fee When you buy a property, you need to get it registered; registration acts as a proof that a transaction has taken place. So, registration fee is another additional cost that you need to budget for. Stamp duty payment Every time you carry out a property transfer transaction, you need to pay stamp duty, which is the tax paid to the respective State government whenever a property is transferred. Stamp duty is calculated on the agreement value of the property or the market value, which ever is higher, and is paid by the buyer. The stamp duty charges vary in different states and for different categories.

Loan charges

Did you think that with a home loan, you just need to make a small down payment for the property, and nothing else? Well, in that case, there is something you need to know – that even the home loan comes at a price. Taking a loan means you need to pay a gamut of loan charges which include loan processing fees, documentation charges, and other administrative charges. These loan charges vary from one bank/HFC to another, and may go up to 2% of the total loan amount. Remember to bargain for these charges with the loan provider while getting the loan.

Furnishing and Maintenance charges

Buying a house is not the end but the beginning of an ongoing expenditure. You would like to furnish the house as per your taste and personality, and in addition, there would be ongoing maintenance expenses. Because this is your own property, you would not like to cut corners and get the best for your house. So, do plan for these costs well in advance – as these can really make your budget go through the roof.

If you are buying an apartment, the maintenance and other miscellaneous charges like parking charges, club membership charges, lift charges, etc. - will be charged upfront by the builder in addition to the actual price the apartment.

So, when buying a house, add all possible additional costs to the property value and see if you are well prepared to take the plunge.