If you’ve just bought your first home, congratulations on the incredible achievement! It is a major milestone in your life and you should feel proud. Managing a house and the costs it comes with can feel overwhelming for a new homeowner, but it all comes down to practicality, and pre-emptive planning. At Tata Housing, we’re here to help you settle into your new home as comfortably as you can, and with this simple guide, we can help you manage your homeownership costs effectively and efficiently. So read on to make this aspect of your life a lot easier.
1. Consider Ownership Costs Before Buying a House
Home ownership costs change from project to project depending on a wide range of factors and variables. This is why you will need to consider them before you even look at residential properties for sale. Calculate all upfront costs. For instance, the sticker price of the house is just the beginning. In states like Maharashtra, stamp duty can add 5–7% to your budget, while registration fees hover around 1–2%. For under-construction homes, GST (5%) is another hidden expense. Additionally, different developers may have their own terms and conditions on homeownership. Consider a home by reputed real estate developers like Tata Housing for a transparent home purchase experience which helps you plan your home budget project effectively.
Pro Tip: Opt for a ready-to-move-in home to skip GST. Better yet, consider co-owning the property with a female family member (Source - https://bit.ly/4qtYvtz). States like Delhi and Uttar Pradesh offer lower stamp duty rates for women buyers.
2. Manage Your Home Loan Costs Effectively
More often than not, a home loan tends to be a necessary part of the home finance process., But don’t worry about this. Managing your home loan (Source - https://bit.ly/4qlozHe) is all about smartly managing the expenses it curtails. Start by saving a 20–30% down payment to reduce your loan amount and avoid costly mortgage insurance. Compare interest rates across banks, NBFCs, and housing finance companies—many offer lower rates for women applicants.
The Pradhan Mantri Awas Yojana (PMAY) offers interest subsidies up to ₹2.67 lakh for eligible buyers. Check if your income bracket qualifies!
When choosing a loan tenure, aim for a balance. A 15-year loan means higher EMIs but saves lakhs in interest. Use online EMI calculators to find your sweet spot. Plan your home budget according to these factors.
3. Cut Down on Monthly Expenses with Proper Planning
Once you move in, the real challenge begins. Maintenance charges in housing societies (Source - https://bit.ly/4qt4yyB) can vary wildly. A posh complex with a gym and pool might charge ₹5–7 per sq. ft., while a simpler society could cut that cost in half. Ask: Do I really need a jacuzzi, or would a functional park suffice? Thankfully, builders like Tata Housing are coming up with projects that give you the best of both worlds here, by providing world class amenities in township projects where they’re preplanned and costs are much more manageable.
Energy Hacks: Replace old bulbs with BEE 5-star rated LEDs—they use 80% less power. Installing a solar water heater? You’ll save ₹1,500–2,000 monthly on electricity. Even small fixes, like fixing leaky taps, can save 20% on water bills.
4. Budget Home Plans Taking Repairs into Account
That crack in the wall might seem harmless today, but ignoring it could lead to a costly structural repair later. Allocate 1–2% of your home’s value annually for maintenance (Source - https://bit.ly/4qoPzWa). Create an emergency fund for sudden issues like plumbing disasters or monsoon-related leaks.
Boost Resale Value: Focus on repairs and upgrades that add value. A fresh coat of paint, modular kitchen, or waterproofing can significantly boost resale potential in cities like Mumbai or Bengaluru.
5. Tax Reduction Tips Every Homeowner Should Use
The Income Tax Act is your ally. Under Section 24, you can claim up to ₹2 lakh annually on home loan interest payments. Repaying the principal? Section 80C offers a ₹1.5 lakh deduction. If you’ve taken a joint loan, both co-owners can claim these benefits separately—double the savings! (Source - https://bit.ly/3MUmcwD)
Rule of Thumb: Keep all loan documents, receipts, and payment records organized. Missing paperwork during tax season is a headache you don’t need.
6. Turn Your Home into an Income Source
It’s the digital age and with it, there are many ways to turn your property into an income source. Not planning on immediately moving into your new house? Got an extra parking spot or storage room? Rent it out! Platforms like NestAway and Airbnb make it easy to monetize unused spaces.(Source - https://bit.ly/4asKYxH) In metro cities, a parking spot can fetch ₹2,000–4,000 monthly.
7. Save Big By Sharing Costs with Your Neighbors
Why pay full price for pest control or painting when your RWA (Resident Welfare Association) can negotiate bulk discounts? Collaborate with neighbors (Source - https://bit.ly/4slJ88r) for shared services like security, gardening, or waste management. In Bengaluru’s apartment complexes, this approach has cut costs by 30% for many homeowners.
Conclusion
Homeownership in India doesn’t have to mean endless sacrifices. Follow these simple home buying tips and financial advice and you should be fine. By negotiating upfront costs, optimizing loans, leveraging tax breaks, and embracing community solutions, you can enjoy your dream home without drowning in expenses. Review your budget every six months, stay updated on policy changes (like new GST rates or subsidies), and remember—every rupee saved today is a step toward long-term financial freedom.
Disclaimer: The contents of this blog are provided by a third-party vendor on behalf of Tata Housing. All rights, including copyright, to the content within this blog remain the sole property of Tata Housing. The information and opinions expressed in the blog posts are those of the third-party vendor and do not necessarily reflect the views or opinions of Tata Housing. While, we strive for accuracy and quality, we do not guarantee the completeness, accuracy, or reliability of the information presented in these blog posts. Readers are encouraged to consult additional sources and exercise their own judgment when interpreting or implementing any information found in this blog. Tata Housing is not responsible for any actions taken based on the information provided in these blog posts, and we disclaim any liability for errors, omissions, or consequences arising from the use of this content.
