Things to Budget for After Buying a Home

After purchasing a home in India, it’s crucial to budget for various expenses to ensure a smooth transition and comfortable living experience. Planning ahead for costs like registration fees, maintenance, and insurance can help you manage your finances effectively. Here, we’ll discuss the key aspects to consider when budgeting for your new home in India.

Initial Costs

Registration Fees

When buying a home in India, whether at Hiranandani Parks in Oragadam or elsewhere, you’ll need to pay registration fees to register the property in your name. This fee varies based on the property’s value and location.

Stamp Duty

Stamp duty is a state-specific fee that must be paid on property transactions. It’s calculated as a percentage of the property’s value and varies from state to state.

Legal Charges

Legal charges include fees for legal services, such as drafting the sale agreement and conducting a title search. It’s advisable to hire a legal expert to ensure a smooth transaction.

Home Loan

Down Payment

When taking out a home loan, you’ll need to make a down payment, which is a percentage of the property’s value. The remaining amount is financed by the bank or lender.

EMI (Equated Monthly Installment)

EMI is the monthly payment you make towards repaying your home loan. It includes both the principal amount and the interest.

Loan Processing Fees

Banks and financial institutions charge a processing fee for processing your home loan application. This fee is usually a percentage of the loan amount.

Interior Decoration


Budget for furniture to furnish your new home. Consider essential items like beds, sofas, dining tables, and chairs.


Allocate funds for kitchen appliances, such as a refrigerator, stove, and microwave, as well as for other electronic devices like TVs and washing machines.

Decor Items

Include a budget for decor items like curtains, rugs, paintings, and lighting fixtures to personalize your living space.

Maintenance and Repairs

Regular Maintenance

Budget for routine maintenance tasks like painting, plumbing, and electrical work to keep your home in good condition.

Emergency Repairs

Set aside funds for unexpected repairs, such as fixing a leaky roof or replacing a broken appliance, to avoid financial strain.

Property Taxes

Annual Property Tax

Property tax is levied by local authorities based on the property’s value. Budget for this recurring expense to avoid penalties.

Municipal Taxes

Municipal taxes are charged by local bodies for services like water supply and garbage collection. Include this expense in your budget.


Home Insurance

Home insurance protects your property against damage or loss due to unforeseen events like fire, theft, or natural disasters. It’s essential to have adequate coverage.

Life Insurance

Consider purchasing life insurance to ensure that your family can repay the home loan in case of your untimely demise.



Budget for monthly electricity bills based on your usage and the prevailing electricity rates in your area.


Include the cost of water supply in your budget, taking into account both metered charges and fixed fees.


If your home uses piped gas, budget for the monthly gas bill based on your consumption.

Homeowners Association Fees

Maintenance Charges

Homeowners association fees cover the maintenance of common areas like parks, roads, and security services.

Amenities Fees

If your housing complex has amenities like a gym, swimming pool, or clubhouse, budget for the associated fees.

Contingency Fund

Unexpected Expenses

Set aside a contingency fund for unexpected expenses like medical emergencies or sudden repairs to avoid dipping into your savings.

Resale Value Consideration

Future Market Trends

Keep an eye on real estate market trends to gauge the potential resale value of your home in the future.

Property Valuation

Regularly assess the value of your property to stay informed about its market worth.


Budgeting for your new home in India is essential to ensure financial stability and peace of mind. By considering the aforementioned expenses and planning accordingly, you can manage your finances effectively and enjoy a comfortable living experience.

Frequently Asked Questions (FAQs)

Q: How much should I budget for property taxes in India?

The amount you should budget for property taxes in India depends on the location and the value of your property. Property taxes are usually calculated as a percentage of the property’s value. It’s advisable to check with the local municipal authority or a tax consultant to get an accurate estimate.

Q: Is it necessary to have home insurance in India?

While home insurance is not mandatory in India, it is highly recommended to protect your property from unforeseen events like fire, theft, or natural disasters. Home insurance can provide financial security and peace of mind in case of any damage or loss to your home.

Q: What are the common maintenance tasks I should budget for?

Common maintenance tasks you should budget for include painting, plumbing repairs, electrical work, and regular servicing of appliances. It’s also a good idea to set aside funds for pest control, garden maintenance, and other routine upkeep to keep your home in good condition.

Q: How can I estimate the resale value of my home in India?

Estimating the resale value of your home in India involves considering factors such as the location, size, age, and condition of the property, as well as current market trends. You can consult real estate agents, property valuation experts, or use online tools to get an estimate of your property’s resale value.

Q: Are there any tax benefits for homeowners in India?

Yes, there are tax benefits available for homeowners in India. Under Section 24 of the Income Tax Act, you can claim a deduction on the interest paid on your home loan. Additionally, under Section 80C, you can claim a deduction on the principal repayment of your home loan. It’s advisable to consult a tax advisor for more details on tax benefits for homeowners.

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