5 HIDDEN COSTS YOU SHOULD NOT IGNORE WHEN BUYING A HOUSE
Getting a brand new home is a significant life decision that comes with a substantial investment on the buyer’s behalf. Now, we always take a look at the expenses that come as an obvious obligation when getting a new house but amidst the rush we tend to miss the costs that are actually there in the hidden form. Purchasing a house is a complicated process and missing out on these things can be an honest mistake on your behalf. However, these mistakes should be sorted out as soon as possible to ensure that your happiness doesn’t get diluted down.
Let’s take a look at some of the hidden charges that could essentially raise your budget.
1-Stamp Duty & Registration:
With a new house, you need to take a look at the registration fee of the property you acquire. Stamp charges come around 5-7% of the total value of your property along with 1-2% for registration. Cumulatively both can be a major amount which needs to be included in your budget as well. You can also opt for a different option instead of purchasing a property. One can opt to look through options in Real Estate Broker in Dubai, if you require a hassle free space to live.
2-VAT & Service Tax:
In general, you need to pay about 1-5.5 % of the total property value as VAT to the government. For service tax, the charge is as high as 8-10% of the property’s value. Now, paying all this can be an added capital investment on your behalf. The best thing you can do is look for a 1 bedroom flat for rent in Dubai until you are ready to buy a house of your own.
Maintenance is applicable for houses acquired inside societies that maintain gardens, lighting, infrastructure and so on. The charge for maintenance depends on the society you live in. Better the amenities, bigger the charges. You also need to pay up maintenance charges when looking for an Apartment For sale In Dubai.
Parking spaces aren’t inclusive of the price you pay for the new house. You need to buy the parking space additionally. Cost for a parking space depends on factor such as size of the parking area, locality, and open/covered type. If you can’t afford to purchase a house along with parking space, you can opt to live at apartments for rent in Dubai. When living at rented houses, you either get a complimentary parking space or pay a small fee each month for the parking space which is way less than purchasing one.
5-Charges for preferred location:
If you have been looking to buy furnished apartments in Dubai at preferred location, you need to be ready for the additional price tags. Properties that come with higher demand tend to sell out easily and come with a hefty tag.
All these parameters depend on the property cost and your stability. Ensure that you buy a property only when you are actually ready. Buying a house shouldn’t be a rushed decision.