Unforeseen Expenses after Buying a Property!!! Make sure you can afford the maintenance cost and the annual property tax after buying the property. It's like buying a fancy expensive car without being able to pay the annual insurance or fuel for it! Don't bite off more than you can chew.
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Unforeseen Expenses After Buying a Property
#1 Maintenance Cost
Always ask this question yourself before buying any real estate property. Can you afford the monthly maintenance?
Imagine paying ₹30,000 monthly as maintenance after buying a flat!
Emi + Maintenance
Did you think that 30000 monthly as maintenance is high or not possible?
Yes! In Mumbai flats which maintenance is even higher than that! it includes house EMI plus maintenance, Luxury building maintenance is above 30k also.
My uncle has paid around 1.2 lacs for his Bandra duplex flat.
#2 Property Tax
Property Tax is paid annually to the Municipality.
For eg., Some flats in Mumbai have an annual property tax of ₹1 lac!
If you think that Tax has to be paid only if the size is more than the 500 sq feet property!!!
Yes, The exemption started in 2019, however, now the BMC will re-start property tax again on units below 500 sqft.
#3 Quick Formula
As a general thumb rule of Real Estate
Maintenance + Property Tax (per year) = Less than 1% of property value