Plan for these hidden costs when buying a new home

If planning to purchase from the new projects in Mumbai, it would require more than just a down payment. There are plenty of costs associated with buying real estate that you might not expect while you’re scrolling through listings. As the demand increases, developers, who need to survive amidst tough competition, come up with attractive offers and discounts. New marketing strategies such as ‘buy now, pay later’ or ‘no payment till possession’ are only encouraging more people to buy properties.

When it comes to buying a property, the process doesn’t just end with down payments and monthly EMIs. Eventually, buyers find themselves shelling out more than what was quoted.

Few hidden costs in buying a property are thus listed below.

Location matters

Location is the key factor for the deciding rate of the property. Plush localities are often highly prices as they are replete of social amenities and have a conducive vibe. Depending on the location of your property and the cost of services offered, the maintenance price per square feet might vary. At times maintenance is asked in advance by builders probably for a stable influx of funds.

Parking space

Parking space is never complimentary it needs to be purchased as it is a vital element for a smooth life. Closed parking space increases the value of your house during resale.

Depending upon a few factors, developers can charge anywhere between Rs 1 to 5 lakhs for a convenient parking spot. So if you are planning to buy a residential project in Mumbai, make sure you add in a couple of lakhs extra to your estimate.

Registration costs

This cost is mostly accounted for beforehand by most home seekers while buying a property, Registration is mandatory for legal proceedings and thus comes with a price tag.

Stamp duty usually varies between 7-8% of the property value. 1-2% of the property value has to be paid as registration fee to the court. This figure varies with each state. Also, you have to include the fee for the lawyer or notary who will inspect all the necessary paperwork, verify if the developer has the required approvals, and have the paperwork in place for you.

Interior design

As per your taste, the cost of interior design will vary thus your property budget should definitely include the cost of an additional interior. Plumbing costs, electrical work, painting charges, new furniture, additional design work and fixtures that you may want to install – account for all these and more.

Miscellaneous charges

There are few miscellaneous charges that might not be prepared for when you are saving up to buy a property such as the moving charges. These days’ movers and packers ask for a reasonable chunk of money.

If you are buying a house with the help of a broker, then 1-2% of the property value has to be paid as brokerage. Though, this price might vary as per property rate and agents cut. Furthermore, altering tax reforms in the real estate sector should be taken into due consideration.

Thus, buying a residential property in Mumbai is undeniably something to be proud of. But it does come with its own risk factors, concealed costs, and terms and conditions. Deciding deprived of the right knowledge you could remain in ambiguity. Thus to avoid unwanted slip-ups it is crucial to have a plan for these hidden costs when buying a new home.

My name is Rahul Pawar and currently I am working as a Sales executive with one of the most renowned builder in Mumbai. If you are interested to buy a href=https://www.ashwinshethgroup.comresidential property in mumbai then contact me directly