Buying a house in Mumbai is as challenging as it gets.
With real estate prices skyrocketing, investment in real estate can end up draining your savings.
However, there are ways you can be smart about your real estate investments.
Did you know that there is a flat hidden cost involved that you end up ignoring and may pinch your pocket?
Discover home hidden costs and be mindful about your real estate investments
Wondering what are the extra charges when buying a house in Mumbai are? Here are 8 home hidden cost charges when buying a house that can stretch your budget.
1. Goods and Services tax –
Any under-construction properties which are purchased in India are charged with Goods and services tax.
Like stamp duty and registration charges, GST is also paid to state Government.
The GST rate on an under-construction property is 5% but affordable housing attracts only 1%.
There is no GST on Ready-to-Move properties or on all those projects which have got the Completion certificate.
2. Parking Charges –
Parking space is an amenity that is usually mentioned in every real estate advertisement that you see.
Although parking is indeed a much-needed amenity, the space for parking comes at a cost.
Therefore, the wise thing to do is to keep the parking cost into consideration while purchasing a property.
The price of the parking is related to the price of your property purchased.
Be mindful of your parking charges while taking the final call.
3. Maintenance Deposit –
Maintenance charges are the amount you pay towards the maintenance of your building and its amenities.
However, with the newer buildings, developers ask for maintenance deposits from 2 to 10 years.
The benefit of this is that builders get enough capital that they can reinvest in the construction of the property.
4. Preferential Location Charges –
Based on what kind of location you choose, they charge plc preferential location charges that are levied by the builders. For instance, high rise floors will cost more than the normal floors, sea-facing will cost more than others.
These charges need to be under your radar in case you wish to opt for a property that is of preferential location.
5. Registration/ Stamp duty –
Registration/ Stamp Duty is a non-negotiable, mandatory fee to be paid to the government each time you make a property to your name.
Stamp duty and registration charges differ state wise.
In general, it may range from 5 to 7% of the property value. Additionally, stamp duty costs 1-2% of the property charges.
6. Brokerage Charges –
Brokerage charges are the fees that you pay your real estate agent.
Generally, such charges are to be paid by both the parties’ buyer and the seller.
This charge is the commission you pay for carrying out smooth transactions between both parties.
Generally, with several online agents and online booking sites, these are far cheaper than traditional agents.
Also Read: 10 Features That Define Luxury Homes
7. Interiors Cost –
Interior decoration costs add a significant cost to your property.
It is a home hidden cost that can end up skewing your original budget.
In case when the property is not well maintained, the property value will be slightly lesser, however, the total costs including interiors will go pretty high.
Similarly, fully furnished rooms will also be costing much higher than regularly done flats.
8. Bank loan Inspection Charges –
Buying a house in Mumbai is a ridiculously expensive affair and in most cases people taking home loans for home.
To get approved for home loans, a home inspection is required.
Inspection charges are a part of the loan amount and you will be liable to pay the same as a part of the loan repayment process.
The total cost of buying a house in Mumbai thus would surge in addition to the original property price.
It is important to consider all these 8 home hidden costs and charges as a part cost breakup for flat and be aware of the entire price you will end up paying for your new house.