cost of buying home
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How to Calculate Your Home Finance?

The dream of buying a home is something that everyone wants it to come true. However, what bothers the aspiring house owner is the actual cost of acquiring a house in India. Other than the costs involved in buying a home, people also need to know what are the hidden costs of buying a house and what additional costs are involved. So before you go on a house hunt, make sure that you analyze the hidden cost in buying a home in India. Interested to know more? Then let’s find out…

Buying a house in India is something that everyone dreams and not just that, buying a house in India is treated as a status symbol as well as a milestone for anyone.

However, it is not to be forgotten that buying a house is not just a dream, a status symbol or a milestone. It also comes with a lot of responsibilities and good financial stability. Whether it’s taking a home loan or analyzing the actual cost of acquiring a house, every step to buying a house in India needs to be taken into consideration, so that there are no regrets in the future. If you want to pay monthly house rental or invest that house rental amount in home loan instalments, every decision of buying a home is much more than a financial decision. It also is about your life decision, if you are mentally prepared enough to take up a huge responsibility like this.

So before you end up making a final decision of buying a home, make sure you analyze the costs involved in buying a house.

Costs Involved In Buying A House

Before you buy a house, it is essential to know what are the costs involved, so that you don’t end up regretting your decision. Below are some necessary costs that you need to take care of, while you go on a house hunt:

1. Registration Charges

It is not to be denied that you need to incur certain registration costs while you buy a house. Registration costs involve stamp duty and registration fees. These registration costs are incurred to have a legal ownership and acquisition power of the home you are looking to purchase. Registration charges are mandatory to pay to own property legally.

House Registration Charges

Stamp Duty is a charge levied on the legal documentation of a property by the Government. It usually ranges from 3.5% to 12% depending upon the size, location, purpose, state and the market value of the property. And Registration Fees is a charge which is levied on successful registration of the property, which usually is around 1% to 3% of the market value of the property you wish to purchase.

2. Goods And Service Tax (GST)

It isn’t to be forgotten that you have to mandatorily pay Goods and Service Tax (GST) depending on the price of the property you are purchasing. For example, all under-construction properties that are priced above Rs. Forty-five lakhs have a GST of 5% to be paid without claiming Input Tax Credit (ITC) on it.

GST On Real Estate

However, for properties priced below or at Rs. Forty-five lakhs, a GST of 1% is levied and to be paid by the house owner.

3. Brokerage

If you have acquired the property through a broker, be ready to incur brokerage charges. It is mandatory to pay 2% of the property price (exclusive of GST) as brokerage charges to acquire the property. In a few cases, like for affordable properties, brokerage charges are usually negotiable and can be reduced by mutual agreement.

Real Estate Broker

However, it is still advisable if the brokerage charges are evaluated effectively, because the percentage may vary according to the cost and size of the property.

4. Maintenance And Other Society Charges

Whether it’s at the time of acquisition or after the acquisition, society charges are something that none can deny. These charges include society maintenance charges, water charges, charges of the clubhouse, parking charges, floor rise charges, etc.

These charges are mandatory charges to be paid every month to the housing society of the building you have your house. These charges are utilized according to the purpose they are taken for.

Hidden Cost In Buying A Home In India

hidden cost in buying a home

One question that can haunt any house owner is “what are the hidden costs in buying a house?” Apart from the mandatory costs that a house owner has to bear for acquiring a property, there are several hidden charges which may go unnoticed. Therefore it is always advisable, especially for new house buyers, to always keep some extra liquid funds to be able to incur charges which you don’t expect to be usually paid. Also, if you are concerned about “what other costs are involved in buying a house”, you have your answers below;

1. Home Loan-linked Charges

To buy a home, people usually prefer to take a home loan. And that’s the reason why the Government introduces several measures for affordable home loans for people to easily go for it without burning a hole in their pockets. However, taking a home loan is not as easy as taking any other loan. There are certain charges that are involved in taking a home loan. Fees like Loan Processing Charges, Late Payment Charges, Application Fees, Prepayment Charges, Administration and Technical Fees, Bank Charges, etc. are levied at the rates that depend from bank to bank.

2. Preferential Location Charges (PLC)

Preferential Location Charges or PLC is levied based on the “per floor, per square feet” metric. These charges are applicable across all properties at those locations which have more demand or more preference than the others. These charges can also be called as a premium to be paid for the location which offers proximity to all civic amenities and infrastructure facilities. Similarly, these charges are also incurred if one chooses a flat which has better landscape views or preferred floor of the building, or even premium features of the building like a clubhouse or office spaces or in-house cafes, etc.


Buying a house may seem like a huge milestone and a huge leap in your financial status, but it also comes with long-term responsibility and liability (if taken from any outside source). All that is needed while buying a house is an awareness and an understanding of what are the costs that are expected to be incurred and how these costs can be avoided or reduced at stages where it is possible. Once all of the financial research is in place, there is no denying that one can buy a property that they have saved in their wishlist for a long time.

By any chance, if you are searching for your dream home in Undri, Pune. Visit Ganga Glitz by the renowned Goel Ganga developers. 

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