Extra costs, if planning to buy a home
If you are planning to buy home through bank loan, or your savings than make sure you are fully aware about the extra costs, which also known as hidden costs. These extra costs can be bit heavy on your budget and can increase the overall cost of property. If first time you are going to buy home, than you should research on these extra costs, as on the time of final deal you need to pay many other un-advertised and hidden costs.
In India, buying a home is not an easy task, as we all don’t want to bear an extra cost and on the same time we want to make smart deal, no matters its one-time fixed payment or ongoing payment plan even after possession. So, if you know the fact of extra cost, than there might be chances that you are prepare to hit your dream deal. First, you should know the basic selling price of property, which will be computed on the basis of size of the apartments. For Example: – If size of apartment is 1000sq ft and price is Rs 5,000 per sq ft then actual property cost will be 50lac, which means the Basic selling price is 50lac.
Some additional cost charge by developers/builders is below mentioned
Club Membership:
Nowadays every society in metro cities is coming-up with a club inside the residential complex, which provides the extra recreational facilities and few other activities. But what if you are professional and working from 9AM to 7PM, it means you will be not able to take utilize the club facilities and it’s clear that your family don’t need any of these facilities, but there is chances that still you need to pay the club membership fee because it’s not an optional in many of the cases.
External Electrification Charges (EEC):
When real estate developers charge the cost for wires and cables than in most of the cases it linked from the electricity meter of the apartment. These charges can include steel lighting, pumps, equipment, cables, common area lighting and installation of electronic meter.
Preferential Location Cost:
If you wish to buy an apartment on first five floors or on main road or pool facing, than you might have to pay an extra cost, rather than normal cost. Every builder normally charge an extra cost for preferred location
Un-finished Units:
In few apartments builder provides room with plug points, wires and other equipment, but no lighting, space for wardrobe they left but there will be no wooden doors for that, even in some cases builder provides sink but not modular kitchen furniture. So it’s recommended to check the credibility of developer and verify that they are providing these facilities or not and what is furnishing status of an apartment before an investment.
Car Parking Space:
In society, developer offers the two types of parking, first open and second covered parking. According to the guidelines of Supreme Court in 2012, open to sky areas or covered parking (stilted) spaces cannot be sold by the developer or builder. Some of the buyers are still aware about these norms and facts as; developers are still charging an extra cost for parking space. If first time you are buying the apartment, so be careful about parking policy.
So, if you are going to buy the property than firstly check the cost sheet with the developer or an agent, which includes all other charges according to the choice apartment size.
