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A few costs you should keep in mind while buying a resale property

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A few costs you should keep in mind while buying a resale property

Last updated: August 25 2012
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  • A few costs you should keep in mind while buying a resale property

    Here are three costs you should keep in mind while deciding on a resale property

    Buying a house isn’t an easy task. There are a million things to look into and this stands true not just for new properties but also for properties on resale. Here are three costs you should keep in mind while deciding on a resale property.

    Lawyer charges

    Resale real estate market is full of cases where a single property is sold to multiple buyers at the same time. For this it is advisable to run a check on the property title before you enter into an agreement. For the job, you can hire a property lawyer who would check records of the past 12 years verifying the authenticity of the seller. For this, he would charge you between Rs. 5,000 and Rs. 10,000. The lawyer would also help you complete other paperwork related to property registration and stamp duty.

    Repair and renovation cost
    Rarely would you find a resale property that does not need some amount of repair or renovation work from your side. There could be a leaky roof, or pealing paint that needs to be fixed. At times, you may need to renovate the entire house, from scratch.

    Structural engineer’s cost
    Properties on resale are sometimes old structures. While the structure may look strong from outside, only a technical expert like a structural engineer would be able to confirm its stability. Keep in mind that getting a good report card from the structural engineer is important, especially if you are taking a loan to fund the property purchase. Usually, the lender ensures that it recovers this cost somewhere or the other via your loan. If you plan to buy the property with your own funds, you will have to pay for this survey cost out of your own pocket.

    Pending dues
    Make sure that the past owner of the property has paid all bills. These could be electricity charges, water tax, property tax, society charges, parking space charges and the like. If the previous owner hasn’t paid any of these bills, you have no option but to settle the same once the house is in your name.

    Other costs
    Some residents’ associations charge a hefty sum to transfer the ownership of a property. So do include this cost as well.

    The real estate agent who helped you locate the property will need to be paid once the entire transaction has gone through. This could be a percentage of the buying price of the property.

    -LiveMint
  • #2

    #2

    Re : A few costs you should keep in mind while buying a resale property

    <H1>Hidden costs of buying a house </H1>The expenses incurred during the initial period of a property transaction can add as much as 10% to 12% to the overall cost of the house

    There is little scope for the uninitiated to be aware of all the costs while buying a home. In fact, the expenses incurred during the initial period of a property transaction can add as much as 10% to 12% to the overall cost of the property, or of the total amount of the home loan — 5% towards stamp duty, and between 5% to 7% for the added charges.
    IMAGESBAZAAR
    Some of the additional charges such as stamp duty and maintenance are known to most buyers. However, the less distinct ones — which often amount to considerable sums — are only communicated verbally. In other words, the buyer may not have a document to go back to establish when such add-on costs were mentioned. Therefore, the overall cost of buying a property can rise drastically above the originally quoted rate.

    Here is a checklist of some of the ‘hidden’ costs involved in a property purchase: The first ‘hidden’ cost a home buyer will incur is stamp duty Since most homes in India are bought through home loans, there is also the cost of an insurance policy (to cover the home loan) to consider In cities like Mumbai, the title of a property is not always clear. When there is any doubt involved, a strata search of the property’s legal antecedents may be required, and this accounts for another expense in terms of professional fees The registration of a new property with the local electricity board for the fitting of an electric meter involves a one-time expense If a home is not fully furnished and outfitted, the buyer will incur the cost of furnishing, fittings and all other expenses involved in customising the property to individual needs and tastes In the case of a resale stand-alone property, valuation of the property may be required. This involves charges by a registered valuation agency. There may also be costs incurred via the transfer of title of the property, also known as conveyancing. There will be society charges towards maintenance, as well as a yearly property tax

    HT

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