Owning a dream home is a milestone for many, but the excitement of buying a house often overshadows the additional costs that sneak up during the process. These hidden charges can significantly increase your overall expenses if you’re not careful. Here’s a detailed guide to the extra costs you might face and how to protect yourself from budget surprises.

1. GST on Under-Construction Properties

If you are purchasing an under-construction property, you must pay 12% GST (Goods and services Tax).
For example, on a house costing ₹60 lakh, you will have to pay an additional ₹7.2 lakh as GST. Fully constructed and ready-to-move properties, however, are exempt from GST.

2. Stamp Duty – The State-Level Tax

Stamp duty is a state government tax levied during property registration. The rate varies by state, usually ranging from 5% to 7% of the property value.
For a ₹60 lakh house, a 7% stamp duty would mean an extra ₹4.2 lakh added to your cost.

3. Registration Charges

In addition to stamp duty, you must also pay a registration fee, typically 1% of the property value.
For a ₹60 lakh house, this adds ₹60,000 to your overall cost.

4. Maintenance Charges in Societies

If you purchase a flat in a residential complex, maintenance charges are another recurring cost. These charges cover common services such as:

• Security
• Cleaning
• Lifts & common area maintenance
  They are often collected monthly or annually and vary depending on society amenities.

5. Loan-Related Costs – Beyond EMI

Most homebuyers focus only on EMI payments, overlooking other loan processing costs, such as:

• Processing fees
• Legal charges
• Technical charges for property evaluation

These charges can add up significantly and should be factored into your budget before applying for a loan.

6. Expert Advice – Plan Beyond the Property Price

Atul Monga, CEO & Co-founder of Basic home Loan, warns that ignoring these charges can shake your budget.
He advises buyers to:

• Calculate all taxes, fees, and maintenance charges in advance
• Compare total costs between under-construction and ready-to-move properties
• Discuss all additional charges with banks before finalizing a loan

7. How to Protect Yourself from Budget Shocks

• Research state-wise stamp duty & registration rates before buying
• Ask developers for a breakup of GST and additional costs
• Keep a 10–15% contingency buffer in your home-buying budget
• Negotiate processing and legal fees with your lender, wherever possible

Final Word

Buying a home isn’t just about paying for the property—it’s about understanding all associated costs. By factoring in these hidden charges, you can avoid last-minute financial stress and ensure your dream home doesn’t turn into a budget nightmare.

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