Be Ready To Bear These Extra Expenses While Buying a Home

Consider this: the home you plan to buy will cost you Rs 50 lakh. While you are using your overall saving of Rs 20 lakh as the primary cash, you plan to take a loan for the rest of the amount. However, using your last penny as the primary deposit (this is generally done to reduce the loan amount) may land you in trouble. The home buying process is multi-layered expense; you will have to spend more than the original price of your home. By being ready for these may be of great help to breeze you through the home buying process.

Factor in these additional expenses while buying a home:

Maintenance deposit

Many housing societies charge homebuyers upfront maintenance fees, instead of allowing them to pay on a quarterly or monthly basis. This news may come as a blot form the blue, as homeowners are often not informed of this while buying a home. Clarify any such deposits at the time of booking a home.

Parking charges

Parking space within a building comes with a large premium. The charges for renting as well as buying a parking space is getting costlier, as builders come with special parking areas. This cost may be as high as buying a small living space and should be added to the overall cost.

Interiors & furniture

It is important to decorate a new home. This will cost you a lot, even if you do not employ a decorator. A new home requires new lights, fans and other fittings, all adding up to your bills.

Legal expenses

You need to employ legal experts who specialise in real estate to read through the complicated agreement papers. Good lawyers come at high costs and are essential to ensure that you are not short-changed by your developer.

Appraisal reports

A home appraisal report is crucial to ensure that the capital value of the home remains intact. Though it is more popular with those buying second-hand homes, it is also picking up among those buying new homes. Since the market is still evolving, good and experienced home appraisers come expensive.

Pre-moving expenses

There are a number of expenses that come in before you are ready to move in your home. Cleaning, polishing and pest control treatment are among these expenses. To meet a number of these incidentals, keep your pocket ready for a small cost shocker.

Repairs and retrofits

Not all the fittings delivered by your builder are user-ready. A few fittings in the bathroom and kitchen might need sprucing up. In some cases, homes are delivered with construction damages like a broken tile or a cracked wash basin and other such. While the builder is liable to repair them at his own costs, home owners who are keen to move in, shell it out themselves. Even in cases where the builder reimburses them, the initial payments have to be borne by the home owner.