"Square feet price" isn't everything! Before buying a home, learn how these 5 expenses can increase your budget..

Home Buying Tips: Buying a home is everyone's dream, but before fulfilling this dream, it's important to understand a few things. People often look at the price per square foot and assume that's the final cost. However, this isn't the case. Buying a home involves many hidden expenses that can cost you 10 to 12 percent more.

If you're buying a flat worth ₹1 crore, keep an extra ₹10-12 lakh ready. This money will be spent on expenses like stamp duty, GST, maintenance, parking, and legal charges. Let's discuss these five major hidden expenses.

Stamp Duty and Registration
According to a CNBC report, the first and largest expense is stamp duty and registration. This varies from state to state, but typically accounts for 5 to 7 percent of the home's price. This means that a flat worth ₹1 crore will cost ₹5 to 7 lakh just for this item. This expense is inevitable, and there are no discounts. This means you've lost so much money without receiving any additional amenities.

GST
If you're buying a ready-to-move-in flat, you don't have to pay GST. However, if the house is under construction, you'll have to pay 5% GST. If it's an affordable housing project, you'll have to pay 1%. Many people forget to include this tax in their budget, and their costs increase later. So, if you're buying an under-construction flat worth ₹1 crore, set aside ₹5 lakh for GST.

Maintenance and Corpus Fund
Developers often ask for 1-2 years of maintenance fees upfront. This money goes towards amenities like elevators, security, and a clubhouse. Additionally, a corpus fund is also required, which is set aside for the society's future maintenance. This amount can run into lakhs, not thousands. People often take this lightly, but it significantly increases your budget.

Parking and Floor Rise Charges
If you prefer a high-rise flat or require covered parking, it's not free. Each floor you move up requires additional parking fees. Especially in large cities, these costs can reach lakhs. For example, if you purchase a 10th-floor flat, you might have to pay an additional 2-3 lakh rupees in floor rise charges.

Legal and Brokerage Charges
Whether you deal directly or through a broker, you'll need to pay at least 1% brokerage. That's 1 lakh rupees for a flat worth 1 crore rupees. Additionally, legal verification to verify property documents can cost 25,000 to 50,000 rupees. These small expenses can add up to a significant budget.

So, don't rely solely on the builder's quoted price before buying a home. Always keep an extra 10-12 percent budget to avoid a burden later.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.