Vinayak Realtech

Imagine visiting an apartment, deciding to buy it, planning your budget, and starting the paperwork—here comes an unexpected twist, a series of unknown costs unfold. Instead of envisioning a happy future in the new flat, you suddenly deal with a fiscal tug-of-war. This incident results in a budget overrun or a rework of your choice, and it is quite common in the real estate arena. As home buyers, we know it is heartbreaking and disastrous. Everyone must know the hidden costs of buying an apartment in 2025. It will help you plan properly and own your dream home hassle-free.

Let’s begin!

Hidden Costs of Buying an Apartment

Buying an apartment in India and Kolkata is quite a tricky task due to the hidden costs. From developer charges to taxes, the price gets multiplied by these hidden costs. If you want an apartment within your budget without any burden, consider these hidden costs before your final decision. The hidden costs are-

1. Calculate the Stamp Duty and Registration Charges on Apartment Price

Stamp duty is the tax that a state government imposes on a real estate property, including an apartment. The percentage of the stamp duty varies. Sometimes, it gets charged on the market valuation of the property or on the agreement value.

Registration fees are much like a processing charge. You pay the government to register the property in your name officially. The stamp and registration fees change depending on the state because it comes under the jurisdiction of state governments.  For instance, the Maharashtra government charges a 5-7% stamp duty depending on the location and a 1% registration fee. On the other hand, the Western government charges a 4-5% stamp duty based on location and a 1% registration fee.

Calculating the stamp duty and registration fees on the apartment price offers you an idea of the final price.

2. Ask About the Maintenance Deposit & Advance Maintenance Charges

One of the sizeable benefits of living in an apartment is that you don’t need to invest time and effort in maintaining the property. Pay the maintenance charge, and the managing committee will take care of the rest.

At the time of buying the apartment, you must pay the maintenance charge. Here, two types of maintenance charges come in front- the maintenance deposit and the advance maintenance charges. The maintenance deposit is a security deposit that gets used in the upkeep of the property, while advance maintenance charges are regular payments, which may be monthly or annually, for the daily operational costs of the gated community.

The amount can vary depending on the property valuation, hence, you must ask the builder about this charge and calculate it before selecting the apartment.

3. Choose the Property Type to Ensure Correct Goods and Services Tax (GST)

Unlike other industries, GST is not mandatory for every property type. GST only gets charged for under-construction properties. Moreover, there is no fixed GST rate. If you go for an under-construction luxury apartment, pay 5% GST, while 1% is required for an affordable one.

On the other hand, if you choose a ready-to-move-in flat, you will not be required to pay any taxes. GST gets charged for the completion certificate that a builder needs for their project. However, ready-to-move-in flats that have received a completion certificate before the purchase do not attract GST, as there is no supply of services or goods at the time of sale.

4. Cost of Moving Can Make a Difference in Your Budget

The taxes, maintenance, or completion charges are internal expenditures that hike the cost. However, that is not all, some external charges also add a significant value to the apartment price, and one of them is the cost of moving.

The cost of moving depends on the distance and the mode of transfer you are opting for. If you choose professional movers and packers, it might incur a little extra expense. It is because these companies operate on their own terms and generally charge by the hour or the number of trips. If you want to avoid it, pack all your belongings and book a truck to move to the new place.

5. Evaluate the Club, Parking and Amenities Charges

Nothing comes free in life, including the amenities in the housing such as swimming pools, gyms, parking space, multipurpose halls, and sports courts. The cost of these amenities varies based on their luxury and range, with more extensive and high-end facilities naturally incurring higher charges.

While these features enhance lifestyle and property value, they can significantly affect the purchase price. Some developers may allow buyers to opt out of specific amenities, potentially reducing costs. While considering different properties, homebuyers should clarify these charges and the options available for opting out, ensuring they can align their lifestyle preferences with budget constraints.

6. Consider Interior Design and Renovation Costs during Apartment Booking

While buying an apartment, buyers consider that it covers everything. You are paying for the structure only, and decorating the space, such as furnishings and renovations requires additional costs.

Take note, these modifications include anything from painting & installing custom cabinetry to completing layout changes. We suggest homebuyers keep a separate budget for these expenses. The cost of quality interior design can even shoot up to 20% of the total cost of the apartment. This awareness ensures that owners are fully prepared for the financial commitment required to turn their new bare-shell apartment into the home of their dreams.

7. Count the Other Miscellaneous Costs Before Finalizing It

Once you are done with the mentioned charges, we suggest keeping a significant amount for miscellaneous things. These miscellaneous costs include processing fees over your home loan, water line, electricity connectivity, and so on.

Remember, you can’t live properly without paying these charges, and it can really be a burden if you do not prepare. If you are confused about how much money to keep aside, ask for guidance from a professional or a homeowner.

Hidden Costs of Buying an Apartment: Closing Thoughts

These are costs that no one talks about, however, these amounts can impact your bank account. Hence, do not take it lightly, plan it properly.

If you are looking for your dream home, connect with us. We have several projects in the Rajarhat, Newtown area catering to different budgets and choices.