Buying a home? Don’t forget these extra costs

If you are planning to finance your home through loan from a bank or utilise your savings to buy your dream home, make sure you are fully aware of the cost to be paid, other than the actual property cost. If you are a first time buyer then it might interest you to know that the actual cost is not the only amount you need to pay as there are many other hidden and un-advertised costs.

Planning on a property purchase in Delhi?

Buying a home is not an easy task as everyone wants to make the right decision and not bear additional costs, be it a one-time fixed payment or ongoing even after possession. So, if you are aware of these extra costs beforehand then you might prepare yourself and not get hit by any surprise after investing.

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First, one needs to understand the basic selling price which is computed as per the size of the apartment. Example: if the apartment size is 900 sq ft and the price is Rs 3,000 per sq ft then the actual property cost is Rs 27 lakh. So, the BSP is Rs 27 lakh.

Let us find out some of the additional costs a builder/developer will charge you:

External Electrification Charges (EEC)

This is the price charged by the developer for the wires and cables that are linked from the electricity meter to the apartment. The charges comprise of equipment, steel lighting, common area lighting, pumps, cables and installation of the meter.

Club Membership

These days every society has come up with a club inside the complex which offers recreational facilities and other activities. “What if a person is working from 9am to 8pm and does not have time to utilise the club facilities or the entire family feels there is no requirement, but they would still need to pay the price as it is not optional,” says Aadil Williamson, senior consultant, Lotika Estates.

Car Parking Space

There are generally two types of parking in a society – Open and covered parking. “As per the Supreme Court judgment in 2012, open to sky areas or stilted (covered parking) spaces cannot be sold by the builder or developer. Some buyers are still unaware of this norm as some developers continue charging extra for parking space,” adds Williamson. If this is the first time you are buying an apartment then be careful and aware too about the parking policy.

Preferential Location Cost

If you want an apartment on the first four floors, main road or pool facing then you might have to pay a higher price. “A builder generally charges or adds a particular amount for the preferred location, on the total cost of the apartment, says Abhay Kumar, director, Ananya Infratech.

Un-finished units

“In some apartments the builder offers rooms with plug points and wires but no light equipment, space for wardrobe is left but there are no wooden doors and in some cases only the sink is provided and no modular kitchen furniture. However, it depends upon the builder and it is advisable to always check the credibility of the developer and verify the available facilities and furnishing status of the apartment prior to investment, adds Kumar.

Always make it a point to check the cost sheet with the developer/agent including all charges for the choice of apartment size so that you don’t end up busting your budget.

Source: http://content.magicbricks.com/industry-news/buying-a-home-dont-forget-these-extra-costs/76255.html