Buying home? Know these hidden costs

Avinash Singh was interested in buying a flat in Mumbai and had a budget of around 70 L with him, which included furnishing the house as well. He was shown many flats costing Rs 60 lakhs for around 1000 sq. ft. He was very enthusiastic about buying it.

September 19, 2011 / 16:23 IST

Avinash Singh was interested in buying a flat in Mumbai and had a budget of around 70 L with him, which included furnishing the house as well. He was shown many flats costing Rs 60 lakhs for around 1000 sq. ft. He was very enthusiastic about buying it. But when he sat down to calculate the costs, he found out that even after excluding the interest costs, he would have had to pay another few lakhs.

Why did this happen? The big mistake Avinash made was that he did not contend with other expenses involved in purchasing a home. These costs like stamp duty, insurance, maintenance etc. comprise at least 10-12% of the final purchase price of the home. As they are significant, it is essential you include them while calculating the total cost of ownership of home.

Here are some of the typical hidden costs involved while buying a home.

first published: Nov 16, 2010 04:05 pm

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