Brokerage-Free Doesn’t Mean Zero Costs
You might be overjoyed at finding your dream apartment and being able to save on brokers. However, there are several other potential costs to consider.
While you can save some money by finding a place to live with no brokerage, understanding which additional costs you will face will allow you to budget effectively and avoid getting caught out.
1. Property to Rent
When you find an apartment to rent there will be various costs in addition to the monthly rent.
- Security Deposit – Landlords often charge a security deposit which they will return to you. This will cover certain unpaid charges or damages during your time living there.How much of a deposit is charged will vary depending on where you are looking and the property itself. Always make sure you know what the deposit will be returned to you and what can be deducted.
- Rental Agreement + Stamp Duty – When renting a property there will be a rental agreement between you and the landlord. This will incur additional costs depending on the state you are in and what the agreement entails.
- Maintenance – Some landlords include maintenance in your rent however others will charge separately. Make sure you know if there will be maintenance charges for the society, security and common areas.
- Packing + Utilities – There may be some costs incurred for packing and moving. This could include electricity deposits, internet installation and gas connection.
If you have an apartment with an ₹20,000 monthly rent, this may actually incur a much larger initial cost due to the security deposit, agreement and moving costs. Always ask for a breakdown of the total cost.
2. Buying a Property
There are more costs involved when you are purchasing a property. By knowing what to expect you can avoid overspending.
- Stamp Duty + Registration – Government charges will apply to any property transactions. The rates will vary depending on the state, property value and what applies. Check with the registration authority for up-to-date rates.
- GST (if applicable) – Depending on the property and whether it is completed or not, there will be different GST rules. Completed properties will generally be treated differently to incomplete properties depending on what the GST rules are. Make sure you know what applies to your situation.
- Legal + Verification – There may be legal costs involved in verifying that everything is in order with the title, approvals and sale agreement. Verifying a property is very important so you know that the ownership is clear and that all documents are valid.
- Loan Charges – There may be charges for processing, valuation and any other applicable charges from lenders. Make sure you know what these will be.
- Maintenance + Applicable Charges – Depending on the project and agreement, there may be maintenance in advance, utility connections and other applicable charges.
Depending on the property, not all of these charges will apply.
3. Property Search Platforms
Using a property search platform will make the initial process of finding a property easier. Using platforms like NoBroker means you can find properties listed by the owner and avoid paying any brokerage fees on applicable properties. However, not everything will be free.
Some platforms will charge for digital services such as helping you with your rental agreement or other property related services. Always check the price of the service and what is included.
With PropTech booming in India, there are many ways technology is changing the way we look for properties. Using AI search tools can help you find relevant properties.
However, even with AI in real estate and an advanced property search platform, you still need to make sure you know what charges apply for legal documents, government charges and what the true cost is.
4. Work Out How Much It Will Cost
Take a little time to work out what will need to be paid. Start with the security deposit/down payment, then consider the costs of documentation, stamp duty, registration, maintenance and any applicable taxes. If you are using a platform to help with moving, there will be packing costs, utility connection and paid services.
Always ask for a written breakdown of what you need to pay. Make sure you know who the payments are going to, what they are for, if they are refundable and if they are included in the agreement.
It can also help to look at similar properties in the area. Knowing what the trend is for property prices can help you understand if the price is fair. However, just because a property is cheaper doesn’t mean it will cost less overall.
5. Know What’s Included
Using a reliable real estate platform will help you understand what you are getting. Using our property platform and services at NoBroker can help you with finding a property and meeting some rental requirements. Just like with any service, make sure to know exactly what is included and the terms of the service.
Overall our NoBroker PropTech approach shows how technology can make parts of the property process easier. However, make sure you double check what charges are applicable, what the agreements say and verify important details. The best option is to choose a convenient option with clear information.
Conclusion
While finding a property without any brokerage can save you money, there are various factors to consider. Security deposits, documentation, taxes, maintenance and other costs can all impact the total.
The aim is to find a property without paying brokerage, but remember that there are other expenses too, such as deposits, paperwork, maintenance and moving costs. Knowing these costs in advance will help you plan your budget better and avoid surprises later.
