Things to Budget for After Buying a Home

November 23, 2023
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It usually goes without saying that buying a home of your own, while the start of a wonderful and memorable journey, is also a hefty financial weight to bear. It is also important to remember that along with the actual charges associated with the purchase itself, there will also be a range of other expenses that come into play following the purchase. Whether you’re looking to invest in ready to move flats in South Mumbai or anywhere else in the country, these are expenses that you will need to take into account for your budget.

Expenses To Note After the Purchase of a Home

Registration Fees and Stamp Duty
It is worth noting that in order to register the new property in your name after its purchase, you will be charged a registration fee by the state government. The amount of the registration fee for a property is a percentage of the total value of the property. While it tends to vary depending on which state of the country the property is in, the registration fee is usually around 1 percent of the property’s value if the value is under 30 lakh INR. If the property’s value is over that figure, then the registration fees will be at a fixed rate of 30,000 INR.
The stamp duty is an additional cost that comes with the purchase of a home which is levied by the government when it comes to any transactions relating to property – both commercial and residential. Much like the registration fees this amount is a percentage of the property’s value and it varies from one state to the other. For instance, in the state of Maharashtra, the stamp duty is said to be about 4-7 percent of the property’s market value (depending on the city in which the property is) or the amount agreed upon for the purchase, depending on which one is higher.

Moving-In Costs
If you are looking to invest in one of the many ready-for-possession residential projects in Mumbai or anywhere else in the country, then you will most likely be planning on moving relatively soon following the completion of the property’s purchase. Packing up all of your valuable possessions and moving them can be an expensive affair especially if you are shifting a considerable distance away from where you previously lived. It can be all the more expensive when you have a lot of large and heavy items that need to be packed and moved, because in this case you will most likely need to hire a packing and moving company to have this work done for you.

Furnishing Costs
One of the more well-known expenses that you would need to take into account after buying a home is the cost of getting furniture and appliances for the new home. While there is certainly a good chance that you will be bringing several of your furniture pieces and appliances that you were already using at your old home, you will no doubt also want to get some new pieces if your current pieces are outdated. Moving into a new home gives you the perfect opportunity to make an upgrade with regards to your furniture and appliances, and if you take such an opportunity then it will certainly be a notable expense.
Another aspect of this that you will need to remember is any expense that might arise in the event that you choose to carry out a home improvement project. This could entail a range of things such as repainting the walls in a different color, changing the tiles in the bathroom, or changes in any other part of the home.

Maintenance Charges
Along with the expenses such as registration fees and stamp duty, the purchase of an apartment also comes with maintenance charges. These charges will need to be paid to the developer of the property in question, and this is often asked in advance for a period of around one or two years – especially if it is a newly constructed property. It might be worth considering making these payments in advance as you might end up saving money in this method. Usually the actual amount of these charges levied depend largely upon the square footage of your home. The whole objective of paying these fees is to fund the maintenance and any necessary repairs of the parts of the property which are not directly owned by the home buyer.

Property Taxes
Another cost that eventually comes into play following the purchase of a home is property tax. This is a charge that is levied by the government through municipal groups or the local government, for any property that you might own, and will have to be paid on a yearly basis. Anyone who has ownership of any property or a building is bound to be charged a property tax, which is determined based on a number of different factors. These include aspects such as the location of the property, its current approximate value, as well as the year of its construction property carpet area.

Home Insurance
After having taken the huge step of purchasing a home of your own, you will also naturally want to make sure that you have it as well-protected as possible. This means opting for home insurance, which can help in providing you with vital coverage for both the structure as well as the contents of your new home. When it comes to insurance packages, home insurance is bound to be the most significant one, and it cannot be understated how important it is for one to opt for a comprehensive package that is most suitable for your home and your family’s needs.
The costs of home insurance largely depend on the kind of plan to choose – whether it is one that covers the structure of the home, one that covers its contents, or a more comprehensive plan that offers coverage for both. Of course, another factor that affects the home insurance cost is the valuation of the actual home, as well as how old it is. If you are opting for a plan that covers the contents of the home such as valuable jewelry, then the value of these belongings will also affect the cost of the home insurance.

Home Loan Costs
If you are like the majority of home buyers, you will need to have applied for a home loan in order to complete the purchase of a home. This would entail a lengthy process involving submitting your application, paying a processing fee, verifying various documents, submitting documents related to the property, and the signing of agreements. One of the major expenses you will need to take into consideration is the repayment of the home loan on a monthly basis in the form of Equated Monthly Installments (EMI’s). The interest rate for your home loan repayment is determined by a number of factors – which include your credit score, the total loan amount and tenure, as well as your payment history.

It is vital that you have all of these expenses in mind before you finally make the decision to buy a home, so that you can avoid any unwanted surprises after you take the leap. This works as a quick guide to give you a better idea of the kinds of costs that might be involved after you complete the purchase of your new home, whether it is at L&T West Square Seawoods or property anywhere else in the country.

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