Are you planning to buy a property? There are certain things that should be kept in mind. Since it is the biggest investment, therefore it is extremely important to know about the hidden costs that come in.
New Delhi: Owning a house is aspirational. These days people buy houses earlier in their lives. Owing to the increase in income, they often buy more than one house. It is an investment of a lifetime and people go that extra mile to buy a decent piece of real estate.
If you are looking out to buy a property, there are certain things that should be kept in mind. Since it is the biggest investment, therefore it is extremely important to know about the hidden costs that come in.
1. Whenever you approach any real estate agent or developer to buy a property you should be aware of the fact that initial cost described to you by him doesn't include the add-ons. It makes you raise your budget by almost 20 to 25 per cent. It is advisable to be aware of and prepared for this additional expenditure while planning to buy a property.
2. The next important thing that comes into play is registration costs. It is to be noted that the registration cost depends upon the total worth of the property. In most of the states, the legal charges such as stamp duty and registration fees add up about 7 to 10 per cent of the total property cost.
Stamp duty is a tax which is levied on the documents. It is calculated on the basis of the circle rate of the area. Apart from these, there are several other miscellaneous expenses such as the fees of the notary and lawyers who get the job done in the court.
3. Once you acquire a property, there are a host of things in which you spend like getting the interiors done as per your preferences and requirements. Such expenses are generally not planned at the initial stage. While planning to buy keep that extra amount aside for the interior work as well.
4. It is important to check the tax payment status. The buyer should verify with the municipal authorities that the seller has not defaulted on payment of property taxes.
5. Real Estate (Regulation and Development) Act, 2016 (RERA) mandates that developers should register their projects with the authority under the Act. The buyer should verify if the property has been registered with the authority under RERA. For each state, information is available on the RERA website.
It also provides details of any case or complaints filed against the developer of the project. Apart from this, it also provides a useful insight into the credibility of the developer and the project which helps the buyer to make an informed choice.