When it comes to purchasing a property, this process does not just end with down payments and EMIs. Some indirect and hidden charges also come with it. Ultimately, buyers end up shelling out more than what was originally quoted. If you are planning to buy one, try to understand all costs associated with it, so that you can avoid unnecessary confusions later on.
Maintenance Deposit in Advance
When you sign on the dotted line, a builder or developer may ask you for an advance maintenance deposit for a certain time period. This could be for one year, a couple of years, or in some cases, even up to a decade.
Depending upon a property’s location and offered services’ cost, the maintenance cost per square feet might differ. Although some buyers are still debating upon whether it should be paid, builders make it their business to collect the advance deposits since they offer a steady influx of funds.
Preferential Location Charges
There are apartment complexes that overlook, say, a lake or river. Such kind of an apartment is often marketed as one that resides next to a pristine location. Buyers are therefore encouraged to book a flat in a top floor that offer the best possible view to it. This results in increased prices. In real estate terms, they are known as “Preferential Location Charges”.
The Parking Space
You are unlikely to find an apartment that offers a vehicle parking area for free. The parking fee is vital for builders, as they spend a lot to construct a high-rise apartment. This fee may apply to flats from top builders in Ernakulam or even those situated in rather remote areas. It may vary depending upon a property type, location as well as other factors.
If you need more parking space, then you might have to shell out more for that. Although this is no hidden cost, several buyers still assume their gated property comes with a free parking space.
Your property budget should include an extra interiors cost. It might differ, depending upon the interiors’ type you need for it. Plumbing costs, painting charges, electrical work, new furniture, extra design work as well as fixtures you may need to set up – account for all these things and more.
The interior design’s charges could differ too, depending upon you need your house to look as well as the type of materials you select.
When you move into a new house from an old one, you will have to pay for movers and packers. If a broker is involved, then you will have to pay him or her a small percent of the property’s value as brokerage. It is not fixed though. In addition, you will have to consider any tax reforms in the segment of real estate.