Buying your first home? Here are the extra expenses you need to consider

The journey of finding a home to putting your nameplate on it needs a careful planning; especially, if you are a first time homebuyer. Along with the actual cost of a home, there are many associated expenses that you need to take into consideration. Here is a list of expenses homebuyers often forget to take into account.  Keep these expenses in mind so you won’t jumble your finances.

  • stamp_dutyStamp Duty and registration: You have to make provision for stamp duty and registration in your budget. The amount of stamp duty and registration may vary depending upon the size and location of your home.
  • Moving cost: Household shifting and moving to a new place can be both expensive and cost-effective. The distance, the size and quantity of your households will determine the cost of shifting. 
  • Renovation: Whether you are buying a new home or the resale property, there can be some itsy-bitsy changes you would like to make. It could be changing the paint of your bedroom or fixing up the leaky faucets. While inspecting your potential home, make a note of the changes you will be making before moving in. If these are the major changes like installing home partition, changing bathroom tiles, POP and ceiling design or so, it will easily cost you in a lot.
  • Home insurance: As home is an investment for a lifetime, many of the homeowners opt for the home insurance. Though home insurance is not an expense but the security, don’t forget to make provisions to accommodate your home insurance needs.
  • Buffer cash: No matter how meticulously you plan your home purchase, there can be some expense which may arise out of the blue. What if you had budget of 50 thousand for the renovation and the bill exceeded to 70K? What if you have to pay more for ownership transfer because your new society has changed the rules? What if you have to hire packers and movers twice because you have more belongings? There can be expenses which you didn’t plan for, but have to bear anyhow. So, always keep some cash in buffer for such unexpected expenses.

Apart from these major expenses, getting electricity bill transferred on your name, buying a new gas connection, changing addresses in banks, transferring your internet connection, installing DTH and many such small things pile up and take away a considerable amount and time. Keeping in mind all these expenses will save you from the financial trouble, and your dream home will turn into reality without any disappointment.

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