Buying home is a dream for Indians. Owning a house considered as a social status or as investment in India. But buying home without considering important factors would impact your financial position and personal finance heavily. Recent times bank gives maximum 85% to 90% of home property value as loan. In this post, we will discuss other extra cost to pay for home loan.
Initial Payment(30%) :
Initial payment is 30% for down payment for the home. In case home value is 60 lakhs, you have to pay minimum 10 to 20 lakhs as down payment based on bank requirement. Remaining 70% can be availed as loan.
30% down payment + 70% Home Loan.
Stamp Duty(6%):
To buy a new home, we have to pay stamp duty based on home value. It is 6% of home value. It would come around 3 lakhs for 60 Lakhs home.
Registration (1%):
Registration fees would be 1% of your home value . It would be around 60,000 rupees to register your dream home.
Advocate Fees :
Advocate would ask 10,000 to 20,000 to validate document for the home. It varies based on property value and other factor. Minimum it would cost around 10,000 rupees.
Home Loan Processing Fees:
Loan processing fees would be 0.2% of your loan value. It would comes around 15,000 rupees.
Society Administration Charges (1%):
Society administrator fees is 1% of your home value. It would come around 60,000 rupees initially.
Interior Cost (3 Lakhs):
Interior would cost around 2 lakhs to 5 lakhs based on design and size of the property. It requires minimum 2 lakhs for basic interiors for kitchen and living room.
Furniture :
Extra furniture for the new home would cost around 1 lakhs.
Car Parking :
We have to pay for parking area. It would cost based on number of parking slot required.
Extra cost for premium flat :
East and North facing house considered as premium flats. It would cost 1 lakhs to 3 lakhs extra based on property value. Floor rise premium for floors above 4 in the apartments.
Club House Membership :
In case club house is available, club house membership has to be paid. It comes around 1 lakhs to 3 lakhs.
Property Tax :
Half-yearly property tax for your dream home. It would comes minimum 20,000 per year. Monthly 2,000 rupees for property tax.
Monthly maintenance cost :
Based on open area and amenities, it would increase. Based on property size, open area and amenities, it would comes around 3,000 to 7,000 monthly for your dream home.
Other factors to be remembered :
MAXIMUM EMI SHOULD BE 1.5 TO 2.0 OF MONTHLY RENT OF THE HOME.
AVAIL MAXIMUM 70% AS LOAN TO BUY A HOME AND LOAN TENURE SHOULD NOT BE MORE THAN 15 YEARS.
MAXIMUM 40% LOAN EMI, 15% INVESTMENT, 5% FOR INSURANCE AND 5% FOR EMERGENCY FUND
CLEAR NO PERSONAL LOAN FOR INITIAL PAYMENT.
PROPERTY VALUE SHOULD NOT BE MORE THAN 300x OF RENT VALUE.
This is not to fear you on buying home or apartment. It is to make you ready to own your dream home. Get ready with extra 10% to 20% for your home. It will provide relief while buying your home. Happy Buying:)