⚠️ Hidden Costs in Home Buying – What to Watch Out For?
Buying a home involves more than just the base price. Many buyers underestimate additional expenses, leading to budget overruns. Here’s a breakdown of hidden costs you must consider before purchasing a property.
🔹 1. Registration, Stamp Duty & Government Charges
When buying a property in Maharashtra, you need to pay:
- 📜 Stamp Duty – 6% of the property value (mandatory government tax).
- 📝 Registration Fee – 1% of the property value (max ₹30,000).
- 🏗️ GST – 5% on under-construction properties (not applicable for ready properties).
🔹 2. Society & Maintenance Charges
Every residential society charges maintenance fees for common facilities.
- 🏢 One-time Maintenance Deposit – Many builders take an advance maintenance fee (₹2-5 lakh).
- 💡 Monthly Maintenance Fees – ₹3-5 per sq. ft., depending on amenities.
- 🚰 Water & Electricity Deposit – Some builders charge extra for water & electricity connections.
🔹 3. Parking, Amenities & Clubhouse Charges
These costs are often not included in the property price.
- 🚗 Parking Charges – Open Parking: ₹2-3 lakh, Covered Parking: ₹4-6 lakh.
- 🏊 Clubhouse Membership Fees – ₹50,000 to ₹2 lakh for premium societies.
- 🏋️ Gym & Swimming Pool Charges – Some societies charge separately for these facilities.
🔹 4. Interior, Furnishing & Customization Costs
A bare-shell flat requires extra spending on interiors.
- 🛋️ Furniture & Wardrobes – ₹3-10 lakh (modular kitchens, wardrobes, beds).
- 💡 Electrical Fixtures – ₹50,000 to ₹2 lakh for fans, lights, ACs.
- 🎨 Painting & Decor – ₹1-3 lakh for wall finishes & custom decor.
🔹 5. Home Loan Processing & Hidden Fees
If you're taking a home loan, expect extra charges from banks.
- 📑 Processing Fees – 0.5% to 1% of loan amount.
- 🏦 Legal & Valuation Charges – Banks charge for property evaluation & legal verification.
- 💰 Prepayment & Foreclosure Charges – Some banks charge penalties if you repay early.
🔹 6. Property Tax, Insurance & Other Miscellaneous Costs
After buying a property, you need to pay annual expenses:
- 🏛️ Property Tax – ₹5,000 to ₹30,000 per year (varies by location).
- 🔒 Home Insurance – ₹10,000-20,000 per year to protect against damage.
- 🔄 Brokerage Fees – If you buy via a broker, expect 1-2% commission.
📌 Final Thought
To avoid financial surprises, always plan for hidden costs in your budget. Calculate total expenses beyond the flat price before making a decision.
💡 Want to estimate your home buying cost? Try our Flat Cost Calculator.