Purchasing a home is among the most important financial choices you will ever make. Pune, with its developing infrastructure, IT parks, and good connectivity, is a highly sought-after place for homebuyers. But you should first consider your financial status and understand vital factors that will affect your buy. Before you embark on house hunting, take a good look at your financial well-being.

Ask yourself:

1. Is your income steady?
2. How much savings do you have for down payment?
3. What is your current debt-to-income ratio?

Your financial preparedness will tell you whether you can easily bear the monthly EMIs and other expenses involved.

2. Understanding the Cost Breakdown

Purchasing a house entails something more than the cost of the property. A breakdown of the other expenses involved is as follows:

Down Payment: Banks fund 75-90% of the property’s price. You have to put together the remaining amount as a down payment.

Stamp Duty & Registration Fees: For Pune, they are between 5-7% of the value of the property.

GST (if applicable): For under-construction properties, GST is levied at 5% for normal homes and 1% for affordable housing.

Maintenance & Society Charges: A one-time charge or monthly maintenance fee applies, depending on the builder and society rules.

Home Loan Processing Fees: Lenders charge 0.25-1% of the loan amount as processing fees