Buying New House? Hidden Costs You Must Be Aware Of!

Buying New House? Hidden Costs You Must Be Aware Of!

Buying a new house is a financial as well as an emotional decision. And, that involves a considerable time and effort to find your dream house. You need to do a thorough research and run around to guarantee yourself a comfortable, pleasant stay at the property. Apart from the location and layout of the property, one of the most significant factors that you need to consider is cost involved to acquire and, stay in your dream house Buy 3 BHK apartments in Jaipur.

Cost of owning a property is not only about per square foot or per square meter price; it involves a lot of other costs that may be tagged as the hidden costs!

Hidden Costs Involved in acquiring Real Estate:

Brokerage Fee:

If you choose to hire professional services of a real estate agent to help you find the property, you have pay brokerage fee for that. The real estate agent will find the property of your interest, arrange visit to have a look at various properties and negotiate prices on your behalf. As per industry standards, brokerage fee generally is 1% to 2% of the Property price and is paid or settled at the time of property transfer and registration. As this brokerage fee amount can be substantial depending on the property value, you need to account it as one of the costs to arrange for.

Mortgage Cost:

Should you wish to avail a mortgage loan on your property, you need to consider mortgage cost involved. Mortgage cost involves mortgage lending rate, insurance cost (Life insurance), arrangement fee or processing fee. Depending on how much down payment you are making to buy the property, your mortgage cost will vary. You need consider this cost carefully as mortgage loan term are of long duration and you will be committing yourself to certain variable factors such as variable mortgage rates that may vary (go up or down) during the tenor of the mortgage loan.

Property Maintenance Charges:

Property developers levy charges that are billed as annual maintenance charged to take care of maintenance of the property. You need to account for these charges as recurring cost of owning a property. These charges vary depending on the developers, however, are for the convenience of the property owner.

Other Insurance Costs:

Apart from life insurance and property insurance (in case of Mortgage loans); you should also consider other insurance costs should you choose to avail insurance such as home and contents insurance or income protection insurance. Home and contents insurance provides you protection against property damage or loss and provides coverage in the event of theft, natural disasters (earthquake, floods) and fire. Whereas income protection insurance will ensure an agreed or opted level of income in the event of redundancy or inability to work due to injury or illness. However, while going for any insurance cover, you are required to go through the terms and conditions in detail to understand extent and scope of coverage.

Kavita Paliwal
Kavita Paliwal

Kavita is Independent Outreach Specialist cum Content Writer. When not glued to her laptop, she can be found making travel plans that rarely happen ;) Connect with Kavita on Twitter @dreamerkavita