7 Hidden Homebuying Charges Most Homebuyers Overlook (And Regret Later)

Think you know the true cost of your dream home? Discover 7 hidden homebuying charges most homebuyers miss — from GST to parking — and how to avoid costly regrets.

Buying a home is one of the most significant milestones in life. For many, it’s the culmination of years of saving, dreaming, and planning. But amid the excitement of choosing floor tiles and finalizing paperwork, most homebuyers fall into a common trap — hidden homebuying charges that sneak up and strain your budget.

These aren’t always openly discussed by developers or agents, but they can add up to several lakhs of rupees. Being aware of these can save you money, stress, and regret down the line.

Here are 7 hidden charges most homebuyers overlook — and wish they hadn’t.

1. GST on Under-Construction Property

If you’re buying an under-construction property, Goods and Services Tax (GST) is applicable — and it’s not a small amount.

• Rate: 5% (without input tax credit) on non-affordable housing
  
• Rate for affordable housing: 1%
  

This is over and above the base price quoted by developers. So, if you’re quoted ₹80 lakhs for an under-construction apartment, the final amount may actually be ₹84 lakhs (including 5% GST) — and that’s before registration or stamp duty.

Pro Tip: Ready-to-move-in properties are GST-free, making them more cost-transparent.

2. Floor Rise Charges

Most reputed builders charge an extra amount per floor — the higher your apartment, the higher the cost.

• Typical range: ₹20–₹50 per sq. ft. for each floor
  
• So a 3BHK apartment on the 10th floor might cost you ₹1.5–₹3 lakhs more than the same one on the 2nd floor.
  

These charges are rarely part of the initial “base price” conversation and can be a surprise when you receive the final cost sheet.

3. Preferential Location Charges (PLC)

Want a corner unit? A garden-facing flat? Or maybe something with a pool view?

You’ll pay extra.

Preferential Location Charges (PLC) are premiums builders charge for specific units that are deemed “better located.”

• Typical range: ₹50–₹150 per sq. ft.
  
• A 1200 sq. ft. apartment with ₹100 PLC = ₹1.2 lakhs extra
  

Tip: Always ask upfront whether PLC is included in the quoted price.

4. Clubhouse and Amenity Charges

Almost all modern residential projects boast of lavish clubhouses, gyms, pools, and co-working spaces. But access to these isn’t always free.

While the marketing brochure screams “30+ amenities”, you may find out later that:

• There’s a one-time club membership fee (₹50K–₹1L)
  
• Or annual maintenance charges are higher for premium amenities
  

Even if you don’t use the pool, you’re likely paying for it.

5. Advance Maintenance Charges & Corpus Fund

When you take possession, you’re often required to pay:

• Maintenance Charges in advance (6–24 months)
  
• A Corpus Fund (one-time payment for future repairs or emergencies)
  

Example:

• ₹3/sq.ft. maintenance × 1200 sq.ft. × 12 months = ₹43,200 upfront
  
• Corpus fund: ₹50,000–₹1,00,000 (one-time)
  

These are not optional and must be paid before key handover. Budget accordingly.

6. Legal and Documentation Charges

Many buyers wrongly assume that the developer covers legal costs. In reality, you’re likely to bear expenses such as:

• Agreement drafting and execution fees
  
• Stamp duty & registration (usually 5–7% of the property value)
  
• Legal vetting fees (if you hire your own lawyer — highly recommended)
  

For a ₹80 lakh property, these costs can go up to ₹6–₹7 lakhs combined.

Don’t forget: Even if the builder offers “zero stamp duty,” read the fine print. It may be a limited-time waiver or adjusted against another charge.

7. Parking Charges

Contrary to what many believe, parking isn’t always free — especially not in metros.

• Open parking: ₹1–2 lakhs
  
• Covered parking: ₹2–5 lakhs
  
• Basement/multi-level parking: Even higher
  

What’s worse? Some developers sell parking spaces separately, not included in the sale deed, which can create legal complications.

Bonus Tip: Watch Out for “Cancellation Charges”

If for any reason you back out after booking:

• Builders may deduct ₹25,000–₹1 lakh (or more) as a cancellation fee
  
• Some deduct up to 10% of the booking amount
  

Always clarify this clause in writing before booking.

Final Thoughts: Knowledge = Savings

The joy of homeownership should not be clouded by unexpected costs. While developers may highlight attractive base prices, it’s the fine print that often causes real financial pain.

Before you sign anything, ask for a complete cost breakdown — in writing. Compare this with at least 2–3 other properties to ensure transparency.

Also, consider working with a reliable team like Ceyone, before making large payments. A few thousand rupees spent on professional help can save you lakhs — and a ton of emotional distress.

Because when it comes to buying a home, regret is too expensive.