Buying property in Faridabad, like any other city, is a significant financial commitment. While you may be aware of the initial costs like the property price, there are often hidden costs that can add up quickly and surprise you later. To make sure you don’t face financial strain after making your purchase, it’s essential to understand and plan for these hidden costs. In this article, we’ll look at how you can avoid them and ensure a smooth property-buying process.
1. Understand the Total Cost of Ownership
When you set out to buying property in Faridabad, make sure to consider the total cost of ownership. This includes more than just the purchase price. One of the common hidden costs is the registration fee and stamp duty. Stamp duty in Haryana can range from 6% to 7% of the property value, depending on the type of property and location. Apart from this, the registration fee for transferring ownership also needs to be factored in.
Additionally, check whether the property you are buying has any outstanding charges or dues, such as unpaid property taxes or maintenance charges. These costs can accumulate quickly and become a burden if you’re not aware of them beforehand.
2. Hidden Maintenance and Repair Costs
Another hidden cost often overlooked by property buyers in Faridabad is the maintenance and repair costs. New properties may look perfect at first glance, but over time, you may need to spend money on repairs and maintenance. This is especially true for older properties where plumbing, electrical systems, or walls may require attention.
Before purchasing, inspect the property thoroughly, preferably with a professional. This will help you spot any potential issues that may need fixing. You should also consider the building’s age and its overall condition. If you’re purchasing a property in a society or apartment complex, ask about the maintenance charges and what services are included. Hidden maintenance costs can significantly affect your budget if you’re not careful.
3. Home Loan Processing Fees and Interest
If you’re taking a home loan to finance your property purchase, there are several hidden costs associated with it. Besides the interest rate, which is the most visible cost, many banks and financial institutions charge processing fees, administrative fees, and even legal fees for documentation. These charges can be anywhere between 0.5% to 2% of the loan amount.
While many buyers focus primarily on getting a loan with the lowest interest rate, it’s equally important to ask about all the associated costs of the loan. Some banks also offer discounts on processing fees, so it’s worth asking about them before you finalize your loan.
4. Tax Implications
Property buyers in Faridabad must also consider the long-term tax implications. While you may be familiar with property taxes, there are other tax-related costs that might catch you off guard. These include capital gains tax when you decide to sell the property in the future, and tax deductions on home loans.
For instance, if you sell the property within three years of buying it, you may have to pay short-term capital gains tax. It’s crucial to plan your investment timeline to avoid these extra costs. On the other hand, if you hold the property for more than three years, you might benefit from long-term capital gains tax benefits, which are generally lower. Also, check if you are eligible for any tax exemptions related to home loans under Section 80C or Section 24(b) of the Income Tax Act.
5. Professional Fees for Legal and Registration Work
Property transactions in Faridabad require a lot of paperwork. Hiring a lawyer or a property consultant to help with the legal formalities and ensure that the property has a clear title is a common practice. However, their services come with a fee. Similarly, if you are registering the property in a society, there may be additional charges related to legal work.
It is important to budget for these fees in advance. Typically, legal charges can range from ₹5,000 to ₹25,000 depending on the complexity of the property deal. While it might seem like an additional cost, hiring professionals to handle the paperwork ensures that you avoid potential legal disputes later on.
Conclusion: Buying Property in Faridabad
Buying property in Faridabad can be an exciting experience, but it’s essential to understand all the costs involved. From hidden maintenance costs to tax implications, being well-informed and planning ahead will save you from unexpected financial burdens. By doing thorough research, seeking professional help when necessary, and budgeting for these hidden costs, you can make a more informed decision and ensure a smooth and successful property purchase. Always remember to account for all costs before signing the dotted line and avoid surprises down the road.
