What expenses should you be aware of when moving into a new home

Moving into a new home can be exciting, but it has to be planned to the last detail to make the experience truly pleasurable. Simply buying a new home (whether with a Home Loan or lump sum payment) is not the end of the expenses that a new homeowner will face. This fact is often forgotten or overlooked until unfamiliar bills start to arrive. 

Here are some extra expenses you must be aware of when moving to your new place:

  • Legal expenditure: Once you buy property, you have to get it registered. Stamp duty on a new house can be 7-8% of the value of the property and over that you have to pay 1-2% of the property value to the court. There is also the maintenance deposit that you must pay your builder. The maintenance deposit can be collected for a year to a decade, depending on various factors
  • Parking space: This is a hidden cost many people tend to ignore till it’s too late. Parking space in a new society may not be hard to come by, but once flats start to fill up it can become an issue. Dedicated parking spaces are usually sold separately unless specified otherwise. If you don’t buy a parking space early on, chances are it will only get more expensive over time. Without a parking space the resale value of your flat will also be adversely affected.
  • Brokerage: If you go through a dealer (and most people do), be prepared to pay 1-2% of your property value to the broker. Even if the vendor you go through is a site, you still have to pay some amount calculated on the basis of your property’s value.
  • Interior decoration: This can vary depending on the purchaser’s tastes, but it is still a cost everyone has to pay for customising their living space. Plumbing, electrical work, and painting are some of the things that come under interior decoration, plus any architectural modifications a homeowner wants to make.
  • Household items: Furnishing is something many people overlook while fixing a budget for their new home. Buying white goods such as a refrigerator, TV, washing machine, ACs, furniture, and other household items can add up to a considerable amount. These are necessities today, not luxuries. So, account for them when buying a new home.

Buying a new home can hit anyone’s wallet hard. This is why it is advisable to purchase one after taking a Home Loan, even if you have the liquidity to buy one outright. However, even with a home loan, you may still have to deal with many charges that aren’t covered. 

With EasyEMI options on your HDFC Bank Debit CardCredit Card and Consumer Loan, you can afford to buy your dream home without any financial burden. This can be procured concurrently with a regular Home Loan, which makes it ideal for new homeowners!

Click here to find out more about HDFC Bank EasyEMI options and how you can apply for one.

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