Hidden Costs of Buying a New Home

Buying a home in India is a major milestone, but the journey doesn’t end with the property’s price tag. Many hidden costs can emerge during the process, potentially derailing your budget if you’re unprepared. Stamp Duty and Registration Fees One of the largest hidden costs is stamp duty, a state government tax on property transfers. Brokerage and Agent Fees If you use a real estate agent or broker, expect to pay a commission of 1–2% of the property’s value. This fee is often not included in your initial budget and can come as a surprise at closing. Legal and Documentation Fees Hiring a lawyer for due diligence, title verification, and agreement drafting is essential. Legal fees vary based on the complexity of the transaction but are necessary to avoid legal disputes later. Maintenance, Utilities, and Society Charges After purchase, you’ll need to pay for setting up utilities like water, electricity, and gas. Many developments also require a maintenance deposit for common areas and amenities. Interior Work and Renovation Costs Most new homes are sold as bare shells. Expenses for furnishing, modular kitchens, painting, and minor renovations can be substantial. It’s wise to include these in your budget to avoid last-minute financial strain. GST and Local Taxes For under-construction properties, GST at 5% (or 1% for affordable housing) applies. For example, Mumbai levies a 1% metro cess in addition to stamp duty. Conclusion Understanding and planning for hidden costs is essential for a smooth home-buying experience in India. By budgeting wisely and seeking expert advice, you can avoid unpleasant surprises and move confidently towards owning your dream home. Looking for guidance or a trusted partner in your home-buying journey? Connect with Nirman Developers for transparent pricing, expert support, and a seamless experience from search to possession.