Having a house of your own is everyone’s dream and for this, you need to consider some costs beforehand before purchasing a house. There is a difference between purchasing and having possession of the house. At the time selling builder gives you an estimated cost for buying a house. There may be other charges attached to it at the time of purchasing the house.
Here are some additional costs you need to be aware of before buying your house
1. Stamp Duty
It is a legal agreement for buying a house; a tax charged by the government on the properties sold and purchase value. The stamp duty charges can differ from state to state and as well as urban to rural areas within the same state, it can be charged between 4% and 7% of the property value. Several states also offer rebates of up to 1% to women house owners and people buying affordable homes.
2. Registration Fee
It is mandatory to register the property in the name of the buyer and for this registration charges are to be paid to the government. In most states, the registration cost is 1% of the value of the home.
3. Goods and Services Tax (GST)
If you are going to purchase an under-construction property, you are liable to pay GST on it. The GST is calculated at 1% of the value of the house if the property falls under the affordable housing definition. In another case, the GST is charged at 5% of the property value.
4. Maintenance Charges
Builders collect these charges in advance for a year or two. Typically, maintenance charges include security of the building; lift charges, fees for maintenance of the property, water and electricity charges, events charges, garden charges, etc.
5. Parking Charges
Builder’s charges for the parking space in advance for allowed space to a buyer. Depending on the society, you may be charged a one-time charge or annual charge, or monthly charge. In case of a resale transaction, one has to pay Transfer of Memorandum (TM) charges to the local body or transfer charges to the association for transferring the property ownership. The builder could also charge you Preferential Location Charges (PLC) and floor rise within the same building.
In conclusion, if you are considering a home loan for purchasing a house property, the lender will not take these costs into account while finalizing the loan amount. The sanctioned amount will depend on the value of the property, and all these costs have to be borne by you only. So, you need to consider for all these additional expenses while estimating the overall cost of the house and make a sufficient provision from the start so that these costs does not create a burden on you while acquiring the possession of the house