Buying your first home is one of the most exciting milestones in your life.
A home bought with one’s own money gives a huge sense of achievement and unparalleled satisfaction to any first-time homebuyer.
However, you usually know all the big expenses while buying your property. What usually misses the eye are the small expense items but they can add up to a substantial amount.
It is prudent to know about them and plan accordingly.
In the next 4 minutes, we will discuss a few of such ‘extra expenses’ that are generally neglected initially. These unexpected expenses can catch you off guard and affect your budget plans.
Considering them beforehand will give you better control of your finances.
Let’s consider some of them.
Home Insurance
Home insurance protects you from various damages due to unforeseen circumstances. There can be damages due to natural disasters such as cyclones (a common occurrence in Kolkata), due to other factors such as fire, theft, or burglary.
Home insurance makes sure your financial damage is minimized in any such event.
Mutation Charges, Property Taxes
As soon as you get the mutation done, you will have to start paying property taxes. You may need to pay a portion of the year’s property taxes upfront, even though you’ll get a tax bill later on.
Residential Society Fees
Residential societies in India play a key role in managing residential communities, maintaining common areas, and boosting property values. They became popular as urban and gated communities started to grow, thanks to planned residential projects. These societies help keep communities well-maintained and ensure a good quality of life by enforcing rules and regulations set by the homeowners.
Residential society fees usually range from Rs 2,000 to Rs 30,000 per month, depending on the type of property, amenities, and services. These fees help with maintenance, saving for future needs, and improving the community.
Interior Decor/Renovations
Your home decor is not only a reflection of your taste and choice, but it is also needed to make it more functional, stylish, and increase its value.
For a fresh look, repainting walls can make a big difference. When it comes to flooring, you have choices like hardwood, tile, laminate, or carpet.
Updating the kitchen might involve new cabinets, countertops, appliances, and fixtures. In the bathroom, you can replace vanities, sinks, toilets, showers, and tubs for a modern touch as per your personal taste.
The cost of these can vary substantially depending on the extent of the work and the material you decide on.
However, these costs are essential as a well-decorated home makes a great social statement.
Landscaping/Gardening
Green living is not an option anymore it is essential in our urban existence.
Even in small apartments, a balcony garden is more conspicuous these days. You can relax after a stressful day in a garden in touch with nature.
However, developing and maintaining a garden has a cost. You need to buy plants and seeds, garden equipment, and fertilizers.
It depends on the kind of garden you are creating but you must consider the cost.
Legal Expenses
Buying a property is a complex process, more so if you are buying a pre-owned real estate. It needs detailed due diligence and legal help is required in several steps.
There is a cost of legal support, although it may not be prohibitive.
However, you cannot avoid these expenses. It will not be prudent to do so.
Preferential Location Charges
You have to shell out extra money for preferred locations in a housing complex. For example, you need to pay extra for an exclusive view.
A lake-view flat in a complex overlooking a lake obviously comes with a higher price tag.
Moreover, if you want to purchase an apartment on a certain floor level, often on the upper levels, you may be able to do so for an extra cost.
Typically, floor rise rates are given per square foot and might be established by the builder for each level or a specific group of floors in slabs.
However, buying a home ( whether for staying or investing) is a one-time affair in decades. It is often worth paying the extra price to increase the apartment’s resale value.
Utility Charges
Payments for electricity, gas, and water connections are just a few of the additional fees to consider when acquiring a house. Once you’ve paid the installation fees, these utilities will charge you a monthly fee based on your consumption. These costs are levied by the local municipality and tracked using meters placed nearby or on your property.
Moving Costs
Finally, you need to shell out some money when you actually move into your new home.
The cost is dependent on various factors such as the distance from your current home, the volume of goods that need to be transported, type of service (packing, loading, transporting, unloading, and unpacking are more expensive than those who just move your things).
Clearly, there are a lot of expense items that are hidden but you must consider these expenditures while buying your dream home. Making a home-buying budget after including all these items will help you stay on top of your finances.
