Hidden Costs in Home Buying
Apart from actual purchase price of the property, you may be surprised to learn of the many other purchase costs which are easily missed during planning or budgeting by a buyer. Knowing what these hidden costs are can help you plan your finances in advance.
Stamp Duty: Real estate stamp duty is a type of tax collected by the Govt. of India. This is a one time payment and it is paid for a document to be considered a legal instrument. Stamp duty in Bangalore is around 5% of the property value.
Water & Electricity: Even though Bangalore doesn't have municipal or cauvery water, you'll need to pay a deposit to BWSSB & BESCOM for electricity.
Club Fee: If you are moving into a condo or a gated community, you'll need to pay a huge deposit for club membership.
Maintenance: This is different from the club fee, with not much ground water around many cities, your monthly maintenance would be quite high.
Home or Mortgage Insurance: If you are opting for a home loan, most banks have made it mandatory to purchase or insure your home for any defaults or unforeseen events.
Moving in Costs: Moving into a home can be a major expense and should be included in your overall cost assessment when purchasing a home. If you are moving across the country, the costs of transporting or relocating could be significant.
While certain expenses like government taxes are out of our control, other expenses can be reduced if you are moving into a resale home.