Costs You Have To Incur For Your Home Purchase

Buying a house at times involves most of your savings and money. While you factor in additional costs such as registration fees, stamp duty, brokerage fees, taxes, etc., while buying a house, there might be some unforeseen charges you may have to bear during your home purchase.

MakaanIQ brings you some of the sudden costs that may appear with your purchase of the house.

Maintenance and utility charges

Your developer may ask you to pay maintenance charges for two years in advance. These charges may be used for common amenities such as power back-up, parks, security, street lights, etc. Similarly, if you are going for luxurious homes, you might have to pay for extra amenities such as club membership, car parking and other luxury facilities, etc.

Legal expenses

You will need a lawyer who specialises in handling real estate matters and can help you complete the paperwork before and during the registration of the home. This not only ensure the legality of ownership but also helps you settle legal matters, if any. Hence, be prepared for such legal costs while buying your property.

Repair charges

The house you have purchased might need some alterations or repair. The amount you will have to spend to mend those little damages will include both material and labour costs.

Cost of interiors

Once you have acquired the property, you will have to spend some amount to get the interiors ready as per your preference and requirement. This may not be a planned expense, but it can be heavy on your pocket, depending on the nature of the interior work you wish for your home. Ideally, you should set aside at least 1-1.5 per cent of the total cost of the house for the interiors.

Processing fee

In addition to the interest you pay for your loan, some banks also charge a processing fee. The amount may vary, depending on the loan amount and property cost. 

Critical illness cover, life insurance and income protection

It is necessary to consider what will happen in case you are not able to cover your repayment of loans, if you lose your job, suffer illness or are otherwise not able to bear the expenses. To stay protected from such situations, it is better to go for a critical illness cover, life insurance and income protection to safeguard your property and your family.