Hidden Cost You Should Not Ignore While Buying A House
While buying a house, people generally stress on obvious costs like affordable home prices, lower interest rates, great housing loans etc. However, they forego on various other bits that are involved in this intricate process of buying an accommodation. Such hidden costs increase the final price of the property, and the buyer usually ends up paying a lot more riches than actually planned. Mayur Homes, one of the Best Builders in Bangalore, states that majority of the buyers fix on a deal considering only the base value quoted by the builder without considering the hidden home charges like registration fees, brokerage, service tax, stamp duty parking space fee, maintenance deposit and whatnot. Here are few common hidden costs that you should not avoid while buying a home:
1. Stamp Duty and Registration fee
Stamp duty is an unavoidable fee that the buyer must pay to the state government in order to get the property registered with his/her name. These charges can vary from state to state from 5–7%, and the property cannot be registered in your name until you pay the stamp duty.
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2. Maintenance Deposit
As an example, many builders associated with Residential Projects In Bangalore charge an advance maintenance deposit of up to 1 year; this usually includes common amenities, parks and lightings. In society buildings, it is charged as a deposit by society members to deal with any damages that crop up in the future.
3. Interiors
This is a major and the most crucial cost — an inescapable expense because, without appropriate interiors, you just can’t move in. This includes painting, purchasing new furniture, electronic appliances, and the listing is never-ending.
4. Service Tax and Value Added Tax (VAT)
If you buy an under-construction property in India is subjected to charges like VAT and service tax. Similar to stamp duty and registration charges, service tax and VAT are also amounts that are paid to the government. The service tax is 12.36% of 25% cost of the under-construction property, while the VAT is calculated on the construction cost of the project.
