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Hidden costs involved in the rental agreement and property buying

If you are thinking of having an apartment or signing a rent agreement, you must be pretty much aware of the fact that there are certain prices which are hidden. It is too unlikely and very much scary, if such situation arises in front of you.

You can see several ads in the newspaper, claiming properties for selling or renting, but do you know that they don’t have any hidden costs? Those ads seem to be very much attractive and mouth watering, but it is also necessary for you to know completely about that property, if you are thinking to invest in one of those and not suffer from any trauma later on. There are several houses and flats available for both selling and renting at an affordable price. But not all charges are revealed to you except for stamp duty, service tax, registration, property tax, etc. But make sure while buying such properties, you include all the miscellaneous and additional charges and estimated an overall cost.

Hidden costs

Lawyer charges and registration cost- You may require several additional charges, including registration and lawyer charges, if you are buying a property. If you are signing a rent agreement, there may have some hidden costs, including advance payment, water charges and parking cost. So, these may exceed your current budget and may impose heavy charges on you.
Property tax- The local municipality will add a certain amount of tax based on your property possession. This additional charge is meant for maintaining some civic services in and around the location.
Location charges- Suppose your house or apartment is situated in the heart of the city, then it will charge you some extra amount. If it is situated facing towards the sea, then also you have to pay some extra amount.
Transaction cost- If you are buying or selling any property, it will definitely include some extra charges, which include reality valuator’s fees, stamp duty, laboratory fees for evaluating the quality of property construction and appraisal fees.
Parking space- Besides everything, if you are having a two or a four wheeler, it will definitely help in shooting up your budget. And these things are not mentioned in any property buying or renting.
Statutory dues- These are meant to be collected by the higher owners or authorities. This includes charges for verification of documents, map charges, regularization charges and land usage charges.
TDS- If the value of your property is higher than fifty lakh rupees, then one percent of the total property value is to be paid by the owner as a tax.
Middleman’s commission- If you are hiring a broker or an agent, your price will definitely go higher; say 2% of the total property price.
Home loan and its processing fee- Almost every Indian citizen takes home loan in order to buy a property. The banks will definitely help you during this time. But as the time comes for the payment of interest, they impose higher rates for that.

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