Hidden Costs to Know Before Buying a Flat in Bangalore
Buying a flat is a big milestone, especially in a growing city like Bangalore. While most people focus on the property price, there are several hidden costs that can catch buyers off guard. Being aware of these charges can help you plan your budget better and avoid surprises after the purchase.
If you’re considering a home at Birla Evara in Kodathi Village, near Sarjapur Road, understanding the full cost picture is essential for smart decision-making. Here’s a list of important hidden costs every homebuyer should know before signing on the dotted line.
- Stamp Duty and Registration Charges
These are government charges that every homebuyer in Bangalore must pay during the registration process. Typically, stamp duty in Karnataka is 5-6% of the property value, and registration fees are 1%. This can add a significant amount to your total cost, so always factor it in when planning your budget.
- Goods and Services Tax (GST)
If you’re buying an under-construction flat, a GST of 5% applies to the purchase. However, GST does not apply to ready-to-move-in flats. Knowing your property’s construction status can help you save money or plan accordingly.
- Legal and Documentation Charges
Legal verification of documents is important to ensure your investment is safe. You may need to pay legal fees to a property lawyer to verify the title deed, sale agreement, and other papers. These charges can vary but are worth every rupee for your peace of mind.
- Home Loan Processing Fees
Banks and financial institutions tend to charge a fee to process your home loan application. This is usually between 0.25% to 1% of the loan amount. Some banks may also charge for legal and technical evaluations as part of the loan process.
- Interior and Customization Costs
When you buy a flat, the base price usually includes only the shell. You may have to spend extra on interiors like wardrobes, kitchen fittings, lighting, and curtains. These costs can add up, especially if you have a specific design in mind.
- Maintenance Charges
Builders often collect one or two years of maintenance charges in advance. These charges cover the maintenance of common areas, security, lift operations, and other services. Ask the builder about these charges before you commit to buying.
- Parking Fees
Parking may or may not be included in the base cost of the flat. Some builders charge extra for covered or open parking spaces. Make sure you ask about this in advance so that you’re not caught off guard later.
- Clubhouse and Amenities Charges
Modern projects like Birla Evara offer lifestyle amenities like a gym, swimming pool, clubhouse, and children’s play area. Access to these facilities often comes with a one-time or yearly fee, which you should consider while budgeting.
- Advance Maintenance and Sinking Fund
Some developers collect a sinking fund upfront to take care of major repairs or upgrades in the future. This can be a lump sum and is generally non-refundable, but it’s crucial for long-term upkeep.
Buying a flat in Bangalore, especially in premium areas like Sarjapur Road or Kodathi Village, is a great investment. Projects like Birla Evara offer high-quality living, but it’s always wise to look beyond the listed price. By accounting for these hidden charges early on, you’ll avoid financial stress and enjoy a smooth home-buying experience.
