Buying Your First Home – Some Unexpected Expenses You Might Forget to Budget for

Kishan Thakkar K

Introduction

Buying a home for first time is indeed an amazing experience. You must have been planning this for years, starting from searching for home to making the advance payment to builders/developer.

When it comes to buy property, the process does not end with just down payment and moving to a new home. There are some extra charges that you’re least expecting.

We have listed eight unexpected expenses in buying properties to help you plan in advance for the extra cost

1. Registration and stamp duty

When you buy property, you have to register it. The amount of registration and stamp duty will be ranging from 5% to 7% of the property value. Stamp duty registers a house in your name. This amount will be paid to the state government and the amount varies in different states.

You might also have to pay a fee to lawyer or notary who will inspect all the paperwork and formalities, which will amount to 1%-2% of the property’s value. 

2. GST

If the property is under construction, you have to pay GST. You don’t have to pay GST when you buy a ready-to-move house. If you don’t want to bear this cost for GST, look for the properties that are ready-to-move-in and obtained the completion certificate.

3. Brokerage fees

The brokers fees will amount to 1%-2% of the property’s value, some charge more than this. It is always advisable to contact the professionals, who take care of all the process of home buying. 

It is advisable to be aware of this cost before you begin the process for buying a home. You can reach out to Roodland India, where we have experts in every field of real estate sector.

4. Extra charge for location preferences

There is real estate term PLC or Preferential Location Charges. The property with a view increases the cost of the property by 5%-10%.

If you are planning to buy a lake-facing property or house with terrace, you might have to add this additional cost for this advantage.

5. Insurance

You should be familiar with cost of the insurance when buying a home. There might be unwanted unexpected moments to the property, like they might catch fire, they might be affected by earthquake. There is always a insurance cover to protect you from such incidents. You have to pay premium for it. The cost of it generally depends on the cost of the property.

6. Furniture and appliances

You my have to furnish your new home. It will allow you to show your personality. Furnishing your home can be very expensive depending on the size and condition of your home. You must consult with the good interior design and architect to make the decisions regarding furniture layout.

Regarding appliances, you have to discuss with your seller for what appliance comes with the home and what does not. You’ll likely need to buy new dish washer, washing machine etc. Things like lights fixtures, EC units, fan etc will not be there, unless it is e part of the contract.

7. Moving costs

When you move to a new house, you have to pay the movers and packer a fixed amount of fees. The charges of packers and movers estimated according to various parameters like moving distance, location and quantity of good. Generally, the cost ranges between 2k to 50k.

Talk to the agencies of the mover and packers to be aware of this charges.

8. Society Maintenance

This amount varies from society to society. They include the cost of having security guard, maintenance of electrical fixtures, maintenance of garden and lawn, maintenance of roads within boundary. Be aware of this expense before you make the deal final.

Conclusion

Definitely this list doesn’t include everything. It is a overview of all the things that first-time homebuyers might have not included in the budget. It’s better to know in advance to be prepared for it. Plan your savings in advance. 

If you’re tired of making decisions on your own, you could also ask for a help to Roodland.

Reach out to a trustworthy real estate agency is a great way to get experts views and advice. Don’t feel hesitant, approach the best around you! All you need to do is reach Roodland as they have the best real estate services. Roodland understands our need, expectations, and works with you to achieve them. Roodland ensures to be with you in every dream of yours and guides you with the best!

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