Do Not Ignore These Hidden Costs While Buying A Home
Buying a home is one of the most significant decisions one takes in a lifetime. When we zero in on the home of our choice we always consider the obvious costs. However, more often than not we tend to overlook or are unaware of certain hidden costs that might put a dent in our happiness of buying a new home. These additional costs could even raise your budget so it is essential you know them before you sign the dotted line.
So, let’s take a look at these hidden costs so you are prepared beforehand.
Registration + Stamp Duty
Registration charges is the fee you end up paying to the state government to register your property in your name. Since it is the function of the value of your property, it will be a significant percentage of your allocated budget for the new home. Each state has different stamp duty charges but they are in the range of 5-7% of the value of your property. Other than the stamp duty, you will additionally have to pay registration fees of around 1-2% of your property value.
Service Tax + VAT
These are more of the additional charges that are incurred by you when you buy a new house. When you buy an under construction property, you have to pay VAT. So when a property exchanges hands form the seller to the buyer, VAT will be applicable. It is generally 1-5.5% of the property value.
Service tax is levied by the Central Government and is applicable for under construction properties. It is generally 8-10% of the total property value.
Maintenance Deposit Advance is the newest trend in the upcoming societies and townships. It is generally charged by the builders. Whereas, in existing societies, it is charged by society members as a deposit. The maintenance covers common amenities in the project like clubhouse, gardens and basic infrastructure facilities such as lighting, water supply, etc.
In the original cost of the property, parking space charge is generally excluded and therefore the parking space needs to be bought separately. However, the cost of your parking space depends on the size, its setup – if it is open or covered, and the location of the property. In case you wish to forgo the parking space, the seller can sell it to another member of the society.
Before you sign the property papers, make sure you are aware of these hidden costs so you are not taken by surprise later. In case you are looking for a residential property in Mohali, you should take a look at Mohali Hills by Emaar India and ask the sales and finance team the right questions about payment. You can take a closer look at the project, right here Explore http://emaar-india.com/mohali-hills/project-overview