November 11, 2022

6 Hidden Costs To Be Aware Of Before Buying A New Property

6 Hidden Costs To Be Aware Of Before Buying A New Property

There’s a lot more to a home than just four walls and a roof. For some, it’s a sense of security, for others, comfort, and for others still, it’s a sign of status and success. 

But there is something else to think about when it comes to buying a property. There are many hidden costs involved when buying a flat. The financial side is also important, since buying a home is often the biggest investment an average Indian makes. 

People miss out on many hidden costs involved in buying a new property. The quoted price of the property goes up because of these hidden costs, and the buyer ends up paying a lot more than planned. A lot of the time, buyers just look at the base quoted price by the builder or seller and jump into a deal without thinking about other hidden costs.

Below are the top 9 hidden costs involved when buying a flat. You should be mindful of these additional expenses when buying a house, so you can better organize your finances and avoid unpleasant situations at the last moment.

  1. Brokerage 

This isn’t a hidden cost, but it’s one that most buyers overlook. Brokerage is the amount charged from the buyer-seller by the broker or real estate agent. Broker fees typically range from 1% to 2% of the purchase price of the home, though certain brokers may charge more. It’s best to discuss the details with your broker right away.

  1. Maintenance Charges

Maintenance charges can be hefty. Depending on the size and location of the property and township, builders may collect these in advance for a year or two. Upkeep expenses for 3 BHK flats in Nashik include building security, lift fees, property maintenance, and common water and power charges are all included in maintenance charges.

  1. Parking Cost

Because space is so limited in our cities, especially metros, parking is not included when you buy a home. This fee can be lower or higher depending on where you live and whether the parking space is open or covered. This fee is a separate cost that is paid to the seller. If you don’t pay this fee, the seller offering it can sell it to someone else.

  1. Home Interior Cost

This is the largest and most significant cost. You can’t avoid it because you can’t move in without decent interiors. This includes things like painting, fixing plumbing, buying new furniture or having furniture made, installing electric appliances, and so on.

  1. Club Membership Fee

These days, forming a club within society itself for the purpose of engaging in recreational activities has turned into the standard norm. Your new society might or might not offer this amenity, but if it does, you’ll have to pay for it if you choose it.

  1. PLC (Preferential Locality Charge)

PLC is the additional charge paid to book a property in a better location within a scheme or complex. Premium projects often have higher PLCs, however, this varies for each builder. Penthouses and villas with lawns or lake views have high PLCs. This cost can vary from time to time.

Why Is It Important To Be Aware Of These Hidden Costs?

When you add up all of these hidden costs, they can add 10-15% to the actual price of your property. It’s important to note that if you’re thinking about getting a home loan, the lender won’t consider these costs when figuring out how much you can finance. 

The amount you can borrow will depend only on how much the property is worth, and all of these costs will come out of your own pocket. So, you need to consider all of these additional costs when figuring out how much the house will cost in total. 

So, whether you want to buy a luxury villa in Khandala, Lonavala, Pune or any other location or you plan to buy a 3 BHK flat in Nashik, Navi Mumbai, Thane or any location of your choice, you need to consider these hidden expenses and manage your funds accordingly.

Goodbrick Realty makes sure to assist its clients in strategizing to arrange finance for meeting these costs as soon as they start making plans on buying a home. That makes it much easier for home-buyers to buy their dream home without any financial worries.

To Conclude

There are various additional expenses when buying a house that can drastically increase your spending and affect your budget. As a smart buyer, you should know about all of these costs and think about more than just the basic sale price (BSP).

Despite the fact that there is no way to escape these hidden costs, keeping them in mind can help one make a wise decision and arrive at an accurate estimate of the cost of the property.

If you have liked this blog, you will also like to read 15 Things To Know Before Buying A Flat In 2022 which highlights the important aspect of things we need to consider before we buy any new home.

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