HOMEOWNERSHIP 101: KEY COSTS BEYOND EMIs EVERY BUYER SHOULD BUDGET FOR

Owning a house is a dream for many.

- RAJ KHOSLA

Whether you are buying a home through a loan or your own savings, it is important to assess the cost of acquiring a property.When you visit a builder, they typically mention the base price. But, several other costs must be considered, such as registry charges, property taxes, homeowners’ insurance, loan interest and processing fees, interior modifications, and more. The actual cost can vary depending on location, home price, financing terms, utilities, and maintenance. A breakdown of the primary costs:

It includes the principal, along with interest, typically paid monthly.

Every property must be registered. Stamp duty rates vary by state based on location, property type, etc., ranging from 3% to 9% of the property value.

When you purchase a house, you may have to incur onetime closing costs, ranging from 2% to 5% of the home's purchase price. These costs include title insurance, loan origination fee, inspection fee, appraisal, etc.

The insurance cost depends on the value of your property, the type of insurance cover chosen, and the area you are in.