Here's how to prepare for extra housing expenses

Pune-based Gaurav Joshi heaved a sigh of relief when he finally received the disbursal cheque from the bank. Having already arranged for the initial payment of  20 per cent of the loan-to-value, Joshi felt all his finances were in place.

It was then that he realised another Rs 2 lakh-plus would be required under various heads. While Joshi's second-hand two-BHK (bedroom, hall, kitchen) apartment cost Rs 28.30 lakh, the stamp duty and registration cost came to an extra Rs 1.69 lakh.

"When I added up all the other costs, the total amount came to Rs 32.35 lakh - a difference of Rs 2.35 lakh," laments the 30-year old.

...

Akshay Kulkarni, executive director (residential services), Cushman & Wakefield, says, "In case of a second-hand flat, there are costs for obtaining a transfer certificate and a no-objection certificate from the society. These charges vary with the society. For a new property, the buyer needs to be careful about the charges levied by the society for the facilities provided."

Then, there are stamp duty charges and housing society costs, among others. Some are decided by the state government, others by developers and societies.

...

For those preparing to shop for a house, here goes the list of extras:

Stamp duty and registration: "In Mumbai, stamp duty comes to five per cent of the cost of the house and the registration is one per cent of the same, or, Rs 30,000, whichever is lower," said Kulkarni.

These costs cannot be avoided as, in the absence of registration, a third party can come and dispute the property's ownership. The good part is that banks consider this as a part of the loan. So, the 80 per cent loan-to-value will include these costs.

Joshi's cost: Five per cent of the property's cost+one per cent=Rs 169,800

Car parking: While purchasing a first-hand property, many builders sell it separately and seek cash payment. Even for a second-hand property, one may have to pay separately.

Joshi's cost: Rs 1.5 lakh

...

Brokerage: This could either be a flat fee or a perc entage of the property's cost (mostly, between one and two per cent). Also, this would vary across brokers. Of course, brokerage is applicable only in case of a second-hand house.

Joshi's cost: Two per cent of the property's cost, or, Rs 56,600

Name transfer: You need to notify your local municipal body and state-run electricity board regarding the ownership of the house. This would cost Rs 5,000-10,000, depending on the area.

"In Navi Mumbai, state-run City and Industrial Development Corporation charges a total of Rs 10,000," said a broker.

Joshi's cost: Rs 2,000-4,000 (municipal corporation)+ Rs 1,500-2,000 (Maharashtra State Electricity Board)

...

Society transfer: This is applicable only in case of a second-hand house. Here, you need to change the ownership of the house by showing the purchase papers to the housing society.

For this, you need a no-objection certificate from the society, after which the house is put in the buyer's name in their records.

Experts say the law does not allow a society to charge more than Rs 25,000 a person. But, societies have their own by-laws, under which they charge anywhere between 0.5 to 1.5 per cent of the property's cost, also.

Joshi's cost: Rs 50,000 (shared by the buyer and seller)=Rs 25,000

Society charges: There are certain costs you will have to incur for the maintenance of the society or locality. It could either be lump sum for a few years or annual or monthly.

Joshi's cost: Rs 1,000 a month