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Almost every Indian dreams of buying a house, be it big or small. If not first, it definitely features in the top three goals to achieve before happily retiring, to spend life peacefully in the same house. It is a huge investment to make, and going by the rise in prices of goods and commodities in today's times, it is an even bigger investment than what it used to be during our parents’ times. Unless you are planning on buying a super luxury car, real estate is the biggest investment that an average person would make in their life, and so a financial decision of this magnitude needs to be well planned before it is executed.
It would do good to learn about the extra costs that come hidden behind the star mark of 'Terms & Conditions'. There are several additional costs that come with the initial cost stated by the real estate agents. Just so you are not surprised, read on and learn the costs that you might want to be aware of before you make the big payment.
This proves to be a considerably huge amount and needs to be paid apart from the initial cost. The stamp duty and registration fees together come up to about 7% to 10% of the property cost. While you’re out to pay this amount, keep in mind that fees of the notary and lawyers who get the court work done are also to be borne by you. In addition to this, a legal counsel assists in verification and registration of the property which would cost you about 1% of the property cost.
Many new residential projects have started charging maintenance deposits (for several years) to their buyers. This means, you will need to dish out a huge amount upfront. However, don’t forget to verify the criteria they cover from paying for maintenance and the benefits that you can enjoy.
In a country like India, owning a parking spot is imperative to ensure that your car will have a spot of its own and is unlikely to be stolen. Very important indeed! Thanks to this situation, you are to pay up a surplus amount to have your exclusive parking space. Make sure to check if the parking spot is a convenient one and suitable for your vehicle, before you pay.
Doing up the Interiors
Hardly ever do we opt for buying a fully furnished home. More often than not, we spend time and money to do up the interiors as per our preferences. If this is not planned in advance, it could end up costing you a fortune.
Other Hidden Costs
Unexpected costs like unpaid civic authority dues, interest on delayed projects, tax rebate loss, etc. could add to the financial burden of the unsuspecting average man who simply wishes to own a house. So before you step into the real estate arena, make sure you are armed with all the knowledge and financial support you need for owning a house.
Best fit loan is the key to buying a house
While you look for the best properties, it is essential that you look for suitable enough loan providers too. The real estate market is huge and naturally the options are many as well, but with this exhaustiveness, comes the problem where the basic product is largely similar. And that is why you need to opt for a loan provider who understands your needs and gives add-on benefits to make your life more comfortable. If you are to go the EMI way, like most home buyers do, ensure that you are able to afford paying one every month. If you are, then put away an amount equal of your EMI and you will be able to raise enough for a bigger down payment, eventually clearing your loan debt. One of the most important things to keep in mind is that the bigger your down payment is, the smaller your EMI will be. It would mean less stress for you and on your income.
Another thing to take into consideration is that debt repayments shouldn’t exceed 30% of your net income. This way, you know that you can surely clear your loans without hampering other financial commitments and retire in your own home, like you always planned. Check out the benefits your can reap with our Home Loans that are highly customised and designed keeping your needs in mind.
All in all, be patient and choose a house that you'll love to spend your life in. Be sure to check out other articles related to home buying and other journeys of your life.
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