What are the extra charges when buying a house in India?

When it comes to buying a house people generally look at the bigger picture and mostly before buying a house they forget to look at the details of the picture. With this I mean to say people just look at the round figure of the property but  some hidden charges also add up to your Flat purchase. Read further to know what are the extra charges when buying a house in India:

At the time of registering the sale deed the home buyer needs to pay a certain amount to the government as stamp duty and registration charges.The stamp duty is 5% of the guidance value (market value) of the property and 1% is charged as registration fee. Registration fee varies from state to state and the guidance value of property depends on the location.

Memorandum deposit of title deed is required to be pay when you are buying a home on the downpayment. I5n that case you need to pay the memorandum deposit to the bank as an undertaking that you have Title deed documents with the lender. The charges of the memorandum deposit is between 0.1% to 0.5% on the home loan amount.

The maximum amount of loan you can borrow from the bank is 75-85% of the property value, the rest of the amount is to be taken care of by you from your savings. 

Developers will charge separately from you as amenities charges like a swimming pool, gym, and other clubhouse facilities. Here I am providing you an example of a 2bhk flat in Noida

Other extra charges when buying a flat in India

• Value of the property- Rs. 90,00,000(purchase price after negotiation)

• Registration and stamp duty - 5,80,000 (5% of the property value)

This is the fund structure of

what are the extra charges when buying a house in India.

Buying a  house is not an easy feat. It requires knowledge about different home loans, real estate market trends, hidden charges when buying a house etc. To make sure, people don't get fooled and pay extra in the name of hidden charges. I have compiled a list to help everyone on their real estate journey. Take a look below to know more.

Few of the extra charges that you are required to pay are mentioned below :

• Maintenance Deposit 

• Preferential Location Charges 

• Brokerage Charges 

• Interiors Cost 

• Bank loan Inspection Charge

• Parking Charges

• Goods and Services tax

Depending on the state where you are buying a property, there will be certain additional charges. As a prospective home buyer, you should be aware that the government has made it mandatory to register the property for legal reasons.  For example, additional charges when buying a flat in Bangalore will also include registration charges and stamp duty in the list. Different states have different property registration charges and stamp duty. Usually, the one to three percent of the total property market value is  registration charge and the stamp duty ranges from four to nine percent. In Bangalore, the stamp duty is five percent whereas the registration charge is one percent.

If you book a house in certain housing societies, you must have noticed that they have their own charges when buying a house there. This might include maintenance charges for the amenities being offered. Banks usually put a processing charge on the home loan taken by the customer. This is inclusive of administration cost, verification of the application cost etc. While choosing a property make sure, all the hidden charges are duly mentioned in the contract to save yourself future trouble.

You can save money by omitting some of the other charges when buying a house. Before sites like NoBroker existed, people paid thousands of rupees to brokers. You can save yourself all of this money and conveniently choose from the listing available on the website.

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Buying a house is everyone's dream but even when we purchase a house by investing a huge amount there are other hidden charges which we tend to overlook. While purchasing a house you need to think about setting up your house and buying furniture to decorate your room. I have purchased a house in Bangalore and I want to discuss the additional charges when buying a flat in Bangalore. So let me explain what are the extra charges when buying a house in India.

What are the extra costs when buying an apartment?

To furnish a house we need to contact an architect or interior designer, buy the materials such as furniture, paints, and at times bricks, cement and concrete as well. So, we should consider these factors and base our estimates on these charges when buying a flat.

Hidden charges when buying a house:

• When you are hiring an architect or an interior designer the charges can be around Rs. 15,000 to 20,000 for 1000 sq ft approximately. The rate can differ from the location you are residing at.

• You need to install doors, windows, and wooden work to install grills, the ceiling which can vary between Rs 900 sq ft to Rs 1,000 per sq ft approximately.

• You should also create an estimation of painting charges. To paint your house you will need 1-2 coats of putty, primer and 2-3 fresh coats of paint. We have to consider the cost of labour, the type of paint you want to choose to paint the house. 

• For cement and concrete, the charges can be around between 900 per sq ft to Rs 1,000 per sq ft approximately.

Charges for paint per sq ft includes:

The labour charges for painting a house is approximately 3/2 of the expense incurred for materials. 

• We also need to consider the quality of the materials we are using. The quality of materials can be categorized into three parts that are  A, B, and C.

• C- poor quality: The charges will be Rs 7-8 lakh for 1000 sq ft to construct a C class apartment approximately.

• B- medium quality: The charges will be Rs 10-11 lakh for 1000 sq ft to construct a B class apartment approximately.

• A- high quality: The charges will be Rs 15-25 lakh for 1000 sq ft to construct an A class apartment approximately.

I hope you understand what are the extra charges when buying a house in India now.

Read more:

Hey there,

It was my dream to own a home of my own. My home gave me a sense of security and a beautiful feeling of independence and pride. It has been one of my biggest investments and one of the best investments ever. Although, it required a lot of financial planning. It is not just the cost of the property but the additional costs like

processing fee for home loan and other extra charges which come into the picture at the time of buying a home. The processing fee can range from 0.5% to 4% of the loan amount for the loan amount up to Rs. 40 lacs. Not only this, there are many other charges which pile up as the

cost of buying a house.

Some of such extra charges have been explained by Miss Shrishti, Miss, Vashali and Mr. Farhan. I would just like to add a few more things which add up as fees when buying a house.

1. External Electrification and electric connection charges: The price imposed by the developer to lay down wires and cables from the power usage metre to the Apartment is known as external electrification charges. EEC is a fee imposed by developers only for the purpose of constructing the infrastructure necessary to supply electricity to the flat. The borrower will be responsible for the real application expenses for the installation of the electricity metre as well as a connection to the state's electricity board in order to receive power.

2. Water, sewerage and drainage charges: The contender would also be responsible for paying for the water infrastructure that has been installed in the complex. 

3. External development charge: An external development charge, computed per square foot, is often imposed by government agencies. 

4. Legal charges: If there is any due diligence to be done in addition to the registration and stamp duty fees, a builder may require the customer to cover the costs of a surveyor or solicitor. All charges are computed according to the RERA on the basis of the CARPET AREA. 

I hope now you know the

processing fee for home loan as well as all the extra charges that you might have to pay while buying a house.