Top 5 Commonly Overlooked Expenses While Buying a Home

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09:30 AM 18 May 2019

Overwhelmed by finding their dream home, most of the home buyers fall into the trap of not realising some expenses other than the property cost, which might strike them hard over the course of time. Home is a major investment and is a life-turning event for many. Buying a home gives a sense of credibility that you now have and discernment of financial stability.

Irrespective of many reasons like starting a new family or moving to another location, people most often miscalculate many other expenses while buying a home. These invisible costs increase the burden of the buyer and later the happiness of finding your new home may start to become less in front of your eyes.

Let’s have a look at some of the most common expenses, buyers overlook while buying a home:

Preferential Location Charges

Finding an ideal home that suits all your requirements can be a tiring task. Most of the people usually want to stay in a particular facing house at certain a location that has an excellent view with all necessary comforts. But with increased facilities, increases the preferential location charges i.e PLC.

PLC needs to be paid for the buying home that has a specific location advantage compared to the other properties in a project. If considered in a housing project, it depends on the location of the property like in the corner, nearby to clubhouses, has a great view of the swimming pool,  and many more. The builder usually gets the option to levy the charges. So, it's important to consider while buying a home, which is vital for you the location or money.

Maintenance Deposit

Nowadays, developers are asking to deposit maintenance costs for buying a home. Depending on the type of location and dwelling these costs may vary up to 2 to 10 years in advance. By doing so, builders are getting a convenience to get greater capital amount to work for the future. These costs cover the amenities and infrastructural facilities of the location.

Maintenance charges can alter depending on the nature and number of amenities the builder is offering for the buyer before buying a home or are present at the project. Mainly relying upon the location priorily before buying a home and the expense of services offered, the maintenance cost per square feet changes. This hidden cost can add up a lot highking your overall budget, so make sure that you're well prepared in advance.

Parking Space

One of the must and should to notice while buying a home is its parking space. It is a crucial component which you never want to miss. With increasing population, India is facing a lot of issue with the parking space. So, while buying a home if you miss one, you will regret it for a lifetime.

For parking space, some builders usually impose an extra charge based on the type of property and location. Even if you don’t have a four-wheeler, one needs to be ready before buying a home. As if you want to sell your property in future not having a parking spot may reduce your resale value. In some cases, it may be a hidden cost, so you need should check whether your overall house cost is including or excluding the parking space.

Stamp Duty & Land Registration Charges

To claim the property as your own, one needs to register their property legally before buying a home. Stamp duty and land registration charges are a mandatory fee the buyers need to pay to the government to enrol the property on their name. It differs from state to state, as each state has different charges as per their legislation for buying a home.

These charges are based on the nature of the property like residential and commercial property, urban or rural location, age of the property, age of the buyers, etc. It also depends on gender, as for female customers some states are imposing lesser registration charges compare to the men. Keep these charges in check added to your buying home extra cost.

Repairs

There should be allocated an extra amount for the repairs before buying a home as it is an inescapable requirement. These costs include seepage works, electrical fittings, furnishing, including other fittings and may be less in case of a new property. But if you are going for a resale property it’s more likely the buying home extra cost may increase.

If you want to change the entire appearance of the house, you may opt for interior designing works which may cost a lump sum money as per your necessities. So, its better you go for a house which suits your requirement and doesn’t need any major changes. To reduce the buying home extra cost you can also make a bargain with the builder or the owner including the repairing costs before you close the deal.

Conclusion

While buying a home, buyers should consider all charges apart from the property cost. So, they will get prepared in advance. For some, it may be a pre-planned budget, overlooking these minor charges and exceeding them may bring troubles in future which may cause a financial crunch for the buyer for buying a home.

Without worrying about any hidden charges, know about the latest properties for sale in Hyderabad with all accurate and relevant information at PropertyAdviser.in. With smart filter options, you get to find your ideal home as per necessities at your pre-planned budget. So, what are you waiting for? Get in touch with us and reside in your dream home.

By Govi