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Hidden Expenses when buying a Flat

Hidden Expenses when buying a Flat

Buying a piece of land ,Flat or a house for the family is one of the most unforgettable dreams for most Indians. People often consider this as a important investment of a lifetime and therefore are willing to go that extra mile to acquire a decent piece of real estate.

Real estate is by far the biggest investment that the average person takes up and in most cases is at the upper scale of the limit of his financial abilities while doing so.Therefore facing surprises in terms of new and hidden Overheads becomes extremely difficult to handle or cater for.

The initial costs as described by the real estate agent does not include a host of add-ons which one has to pay for ultimately raising the budget by almost 25 %. It is smarter to be aware of and be prepared for this additional expenditure that will come your way when buying real estate.

It has to be kept in mind that the registration cost forms a substantial amount depending on the total worth of the property. In most states the entire legal charges in terms of stamp duty and registration fees add up about 7 % to 10% of the property cost.

Typically the stamp duty is about 5% to 7% which means that if one has to buy a property worth Rs. 25,00,000/ then stamp paper worth Rs 1,50,000/ has to be purchased for typing the sale deed on it.

In addition to this expenditure there is a registration fees payable to the court which amounts to 1% to 2% of the property cost.

Over and above these costs, which have to be exclusively borne by the buyer there are several various expenses like the fees of the notary and lawyers who get the job done in the court.

It had been the trend over the last decade to charge an additional upfront payment for exclusive parking spaces in large residential complexes. This amount could vary from 3 lakhs to 7 lakhs depending on the type of property, locality and type of parking space being provided.

This has been a cause of unhappiness for many buyers.