9 Hidden Costs You Must Watch Out for When Buying a House

When Buying a House you try to do everything right; but when moving day finally arrives, you’ll be greeted by a whole bunch of hidden costs that will completely overshoot your expenses. These costs are not hidden per-se, they are quite forgettable in the excitement you have when buying a home.

Varun Manian
Buying a house is a dream for us Indians, and when that dream is realised, our excitement is uncontrollable. You do everything right; choose the location, set the budget and prepare for the housewarming, but when moving day finally arrives, you’ll be greeted by a whole bunch of hidden costs that will completely overshoot your expenses. These costs are not hidden per-se, they are quite forgettable in the excitement you have when buying a home.

Before you go for the big purchase, make sure you set your budget to cover up these 9 hidden costs.

Home inspection cost

When applying for a home loan, apart from doing a background check to calculate your loan eligibility, banks will hire 3rd party home inspectors to check if the proposed property value is worth its price tag. No matter the final report on the property’s condition, the payment for these inspection services will be billed to you and may be added to the monthly interest on your loan.

Cost of relocation

The task of getting all your home decor and furniture from old place to new is made easier with relocation or moving services. Then again, they don’t come cheap, so better be prepared with the money in hand when you approach a relocation service or plan ahead when setting up your budget for buying a home.

Maintenance deposits

Builders today are asking for maintenance deposits up to 2 to 10 years in advance, as it gives them a greater capital amount to work with. Maintenance charges are subject to the locality, land value and type of home you are hoping to purchase. They can also vary depending on the quality and number of amenities the builder is offering you. This hidden cost adds up a lot of your budget, so make sure you’re prepared well in advance.

Stamp Duty/Registration fee

Stamp duty/Registration Fee is a compulsory fee that must be paid to the Government  whenever you are about to register for a property under your name. In Tamil Nadu, the fixed fee is 8% of the market value of the property (7% for stamp duty and 1% for registration fee). This registration is done to achieve a validity to the agreement/ Sale Deed between the buyer and seller confirming a change in ownership. As always, keep your budget fixed well in advance for this fee, as it is likely to cost a lot when you are buying an expensive property.

Parking space cost

Parking space is a handy amenity to have in apartments but then again it is not an amenity that is given to you outright, you have to pay the builders an additional cost to claim your parking space, which may vary depending on how many spaces you require and is directly proportional to the value of the area you are going to live in.

Value Added Tax (VAT)

Taxes is something no one can avoid. When buying a real estate property, VAT is payable to the Government and amounts to 3.09 per cent of the property value in Tamilnadu. For those looking to purchase apartments on a budget more than Rs. 1 Crore or above 2000 sq feet, the VAT is 3.71 per cent and this is something that cannot be avoided. So please do make sure you check with the developer if the price quoted includes the VAT amount.

Interiors cost

Fully furnished apartments save you time in deciding how to set the looks and basic interiors for your living space, but they also come with a price. Basic things like plumbing, painting and laying tiles can vary in cost depending on how exquisite you want your home to look.

Preferential Locality Charge (PLC)

Apartments consist of various blocks, each providing their ways of life to residents. Here, you are forced to balance the budget again with additional costs on the PLC varying from builder to builder. High rise apartments generally cost more when you opt for the luxury homes and penthouses.

Realtor’s fee

If you bought a house through a real estate broker, you have to pay the broker some amount of commission.  The charges can vary from depending on the value of the property and the realtor’s personal fee. Online brokers charge a lot less and give you more options, but it’s better to be safe than sorry and check your budget if it covers for the realtor.

The above-mentioned home charges are unavoidable, but if you have planned everything right and set a strong budget, you can truly live a dream at your new home.

by Varun Manian, Chairman and Managing Director, Radiance Realty

Source : Business Today Article

Gaining sparkle – Varun Manian, MD Radiance Realty

An Interview by Varun Manian, MD, Radiance Realty, for www.constructionweekonline.in

Varun Manian, MD, Radiance Realty, has a number of ventures lined up for the long run.

Early this year, you announced plans to scale up operations and diversify into utility-scale renewable energy projects. Could you tell us more details about that?
In the next few months, we are planning to scale up our operations quite rapidly. In fact, we are hoping to launch half a million square feet in Chennai within the next two weeks. Having made a mark in Chennai and Bengaluru, we believe there is quite a bit of scope in other locations as well.
We want to establish ourselves in the other markets such as Mumbai and Coimbatore. We will be putting our approvals for a further two million square feet between Chennai, Mumbai and Coimbatore. We would like to reserve our plans on renewable energy till a later date.

You have a Radiance Facility Force that is into facilities management. Could you tell us how that is managed?
Radiance Facility Force’s services offers expert solutions in managing and maintaining a client’s buildings and workspaces. The service aims to help organisation reduce operational costs, mitigate risks and augment productivity.
Our team is managed by professionals and is headed by a person with over twelve years’ experience in facilities management. Additionally, we also have managers with either hospitality or an engineering background.

What are some of the modern construction practices and innovative technology you have used in your projects?

We are currently focusing on large real estate projects, and at this juncture, we feel that existing proven technology would suffice. However, going forward, we are likely to introduce low-cost housing and we would like to evaluate prefab technology and look at alternative materials as well.
Going green is something we believe in. Keeping this in mind, we are also in talks with a US-based company to explore the possibility of solar roofs. Solar roofs generate clean energy and will look better on houses than our existing roofs. Power generated during the day will be stored at the site and released in the night. The solar roof will also ensure that the residents have an uninterrupted power supply.

Your website speaks of real estate joint ventures. Does this mean your willingness to form partnerships with those who own land that could be lying idle?
Joint ventures and partnerships are something that we are always looking out for. We are open to partnering with anyone who has vacant land as long as it is in the right location and all titles are clear. We also are willing to partner with existing apartments buildings where tenants would like the old building brought down, and a new building put up.

The real estate industry is seeing a slew of reforms. How will this benefit developers and buyers alike?
This year, the real estate sector has seen quite a few active and long-lasting changes. The RERA (Real Estate Regulation and Development Act 2016), the Benami Transactions Act, and the Real Estate and the Regulatory Authority Bill will ensure this transparency across the board.
RERA is one of the biggest game changers for the sector. The Bill makes it mandatory for the developers to give information to consumers about the entire project, which at Radiance, we already follow.
We treat our customers the way the Bill is expecting us to treat them. The organised players, as well as players who focus on quality and execution, will be able to survive and grow. Developers like us are going to benefit since transparency, quality and timely delivery are going to be given utmost importance.

What are the kinds of homes that are extremely sought after in the locations that you have built?

This is a tricky question. It is tough to answer this because the requirements of people are different. Even in one particular location, we have people asking us for varied sizes. In fact, some customers are extremely happy with a compact 2-bedroom home of 600 sq-ft size while others feel that even 5,000 sq-ft is small. The only common denominator is that today people have learnt to appreciate quality.

Going forward, do you intend to launch projects in new cities? How are you preparing yourself?

We have established a strong base in Chennai and Bengaluru now. In the immediate future, we should be working in Mumbai, Coimbatore and Coonoor. We are all set to make a mark in these new locations as well. We have put together a full-fledged and robust quality control team, excellent safety managers and of course, a strong construction team. With all things in order, we are confident of delivering a high-quality product on time and at an affordable price.

For the love of living

Can the biggest, most difficult decision in your life, be made easy? Yes, it can, with Radiance Mercury! Investing in a gorgeous yet affordable property is always a dilemma, but Varun Manian, CEO of Radiance Realty believes that Mercury is a surefire solution to that dilemma. “We’ve built Mercury with a vision of making it a family friendly home. Whether you are a small, medium or large family, Mercury has all the necessities and more to satisfy the tastes of many”, he says.

Leading the charge

“With places such as OMR, Mogappair and Velachery seeing a massive surge in development, we were quick on deciding to set up Mercury in Perumbakkam. Being one of the first, highly affordable apartments on offer, means that we can lead the charge in any further development that is prone to happen in this locality.”

Perumbakkam is extremely family friendly, being a neighbourhood locality to the trendy Sholinganallur and buzzing Tambaram. It also opens job opportunities thanks to being close to OMR’s IT Corridor. There are lots of quality schools and colleges in and around the area, which ensures that the kids don’t have to travel too far.

Complete living that is affordable

Radiance is well known for the range of amenities they offer, and nothing makes life worth living better than having it all at a surprisingly affordable price. Adds Varun, “We are known for being a developer who strives for high standards of living, so we aimed to offer the same, but at a price that anyone could afford.

Without compromising quality, we’ve managed to fit in the necessities, including options with a 2 and 3 BHK apartment, ranging from 500 sq.ft (exclusive studio apartments) all the way to 1475 sq.ft. We have all the basic amenities like a gym, swimming pool and multi-purpose hall and added some unique features like a laundromat, cricket net, basketball hoop, convenience store and more that you would typically find in high-rise luxury apartments”.

Everything fits so well because of the 6. 2-acre space of land and a total of 546 flats, giving potential residents all the more reason to consider Mercury their future home. If you are looking for a high-class, affordable home in a relatively new area in Chennai, Mercury should be your choice. Click here to invest now.

Infra Talk: The dilemma over plot and flat purchase

An investor’s primary concern when it comes to investing in real estate is to choose between a plot of land and a fully constructed flat. Both have their own advantages and disadvantages. While some home-buyers have strong preferences for one of these, many of them might be unsure on which is a better investment option.
A laid-out plot offers buyers flexibility to build houses as per their future requirement. Basically, plots give you the freedom to change the shape and size of the construction area. Apartments, on the other hand, despite having great architecture, might not be customisable as much as houses constructed on plotted lands.  Read More