Hidden costs you should not ignore while buying a house.

Buying a house is undeniably a costly affair. People spend a considerably larger amount of their lifetime, and few even spend half of their life time-saving money on building or getting a house of their own.

With that, a cutout cost is probably planned by all the buyers while planning to get a house. Many miss out on being aware that buying a house costs a little higher than the direct cost of the house. One needs to keep in mind the hidden costs of home buying. Let's get a perspective of a few common hidden costs involved in buying a house. 

1.Registering the property under your name

Registering the property under your name is the most important part of buying a house. This is also called stamp duty. It is one of the high costs that is involved in buying a house.  

Generally, the house registration happens at a government registration office, and the registration fee falls somewhere around 5 to 12% of the property value. 

In TamilNadu, the registration fee is fixed at 8% of the property's market value, which involves 1% for the stamp duty and the rest 7% for the registration process. 

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2.Middle men charges 

Realtor and brokerage charges are the primary middlemen charges that will be involved in the process of buying and selling a house. Generally, a realtor or brokers charge would 1 to 2 % of the property value. 

To enable a smooth registration process, you need the help of a legal advisor and public accountant. They will review the property and its authentication. To clear out this desk work and get the place registered under your name at the government, you need to pay significant charges to the registrar. 

3. VAT and GST

Goods and service tax (GST) is levied upon all goods and services in the nation, and buying a house is no exception. So this is a non-negotiable tax that you will be paying. The GST rate of the houses under construction is 5% 

It is to be noted that there are no GST charges levied upon houses that have got the completion certificate. 

Value-added tax is similar to GST, and the only difference is that it is the state tax that is being collected here. The VAT tax percentage of the Tamilnadu government is 3.71 per cent for large properties which costs more than rupee 1 crore. 

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4. House Interiors  

When you purchase a house, the interiors of the house are mostly in minimal condition. You need to specify the builders about the interior designs that you require. 

House interiors costs differ as per the level of the buyer's requirements. 

Basic interior things like setting up the electrical circuit, plumbing, laying tiles, painting the house, fixing fire extinguishers cost minimal. 

Generally, a fully furnished house package would cost significantly higher. This involves furnishing the kitchen with smart modular amenities, bedrooms with interiors design and wallpapers, light works and much more would cost significantly higher. 

5.Maintenance charges 

House maintenance charge is the extra charges levied upon the buyers of apartments in a complex to maintain the complex. These are generally collected to maintain amenities like the parks, recreational centres and much more present within the apartment complex. Maintenance charges are typically collected for a term of 5 to 10 years in total. 

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6. House parking charges 

Most often, the house parking charge is not covered by the cost of buying a house. You need to pay an additional charge to book for space. 

The parking space allotted sometimes depend on the size of the housing property you bought. The parking charge is issued yearly, or a lifetime charge is also welcomed at one pay.  

7. Preferential location charges 

Preferential location charges fall under two categories. One is the location of the house in itself depending on the area in which you are planning to buy the house. 

The other is the location of the house in detail. In terms of the house location within the complex like houses facing the park, balconies facing a better view of the apartment, house located near the recreational centres within the complex and more. 

These details demand additional charges in getting a house. 

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8. Miscellaneous cost

The miscellaneous cost will also be a significant amount that you would find drifting away from your wallet without your notice. These are purely subjective costs that you spend.

These are the general cost that is included in the process of searching for different houses before fixing upon the one the buyer likes.

 The transportation costs, food cost, and much more fall under this. The things you buy to shift into the new house can also be added to the miscellaneous expenses. 

Not having an idea of the above-hidden cost involved in buying a house can leave the buyer in an uncertain situation. Be aware of the hidden costs of home buying in the initial stage of looking to buy a house. SPR city offers quality housing at the best prices. At SPR city, you will be clearly intimated about the hidden costs involved to get an insight into the overall cost of purchasing the house.