Purchasing a new home has numerous costs associated with it. It is important for you to be aware of these costs so that you can prepare your finances. If you are planning to take a home loan, knowing about the associated costs like processing fees, can play a big role in determining how affordable it is for you. Being organised and prepared goes a long way in helping you meet all the expenses. So, take a look at 6 costs that you are likely to have to pay when you buy a home.
Advance maintenance deposit:
This is a common deposit that you have to pay the builder or the society. It is your contribution towards the facilities and amenities provided by the society. This cost will vary based on the size of your house and the cost of the services that you have access to. The duration for which you have to pay advance maintenance varies. In some cases, you may have to pay for a year, in other cases, this duration may be 5 or even 10 years.
Parking reservation cost:
This is a common charge that you have to pay to secure a parking space in the compound. The amount you have to pay will depend on the size of the parking space and the number of parking spaces you choose. This is a worthy investment as it boosts the resale value of your property.
Stamp duty and registration charges:
If you buy a property, you have to register it as per the law. Towards this, you have to pay a stamp duty fee that is around 8% of the value of the property and a registration fee, which amounts to 1%–2%. When you are factoring in the cost of stamp duty and registration, also include fees of the legal aide who will help you organise the documents and guide you through the process.
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Brokerage fees:
This is a fee that you will have to pay depending on whether or not you have chosen a broker’s services. You have to pay this directly to the broker who has helped you find a property according to your preferences and your budget. This fee is usually 1%–2% of the cost of the home. Depending on the broker and your negotiation skills, you might be able to lower this percentage.
Additional Read: 5 Facts Your Broker Doesn’t Want You To Know
Interior design costs:
Once you move into a new home, it is important to customise it according to your requirements. To do this you might need to hire a professional interior designer who will improve the aesthetics of your home, while ensuring optimal functionality. This fee will vary based on whether you are decorating the entire house or just a few rooms.
Preferential locality charge:
This is a charge that you have to pay to the builder when you select a home in a locality that is in high demand and has a unique selling point. For example, if you are purchasing a penthouse or a home with a sea view, you are eligible to pay this cost. This will increase the cost of your property by 5%–7%, but it will also increase its resale value proportionately.
Additional Read: 6 Easy Tips to Get Your Home Loan Approved Instantly
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