It costs to maintain your property
Building societies have to keep residents happy and residences in good shape
Nov 09, 2013
Source : The Times of India


DELHI: Buying a house is a cumbersome task. Some people may feel overwhelmed even after the purchase, thanks to hefty maintenance bills that can make a hole of up to Rs 4,000-5,000 per month in the pocket. Of course, the amount varies from building to building, but can become aburden for a person who is also bearing the burden of the home loan.

Usually, the purchaser is aware of these charges right at the beginning, or should ask what they are at the time of purchase. However, it is highly unlikely that this will induce a change in the decision to buy. What makes up the maintenance expenses?

Security and Technicians

A large portion of the maintenance bill includes the costs associated with upkeep of the society/building and security. In large societies, the costs are higher because provision has to be made for the services of an electrician, a plumber and guards.

Technicians are often hired as regular employees to get away from the problems of finding someone whenever a contingency occurs. This increases costs. Hiring securityguards through an agency or employing full-time guards is obviously more expensive. So too with electricians and plumbers.

The other issue is to take into account the credentials of the person being hired. The background and other details are sometimes difficult to get. This is why some resident associations prefer hiring guards from authorised agencies.

Other Costs

As buildings grow older, issues like seepage, painting, wiring and repairs come up. Maintaining lifts also costs money. Lift maintenance charges can sometimes run to Rs 80,000-100,000 a month. Then again, electricity charges for the building need to be met. Power back-up is a cost consuming feature. All this gets added to the total maintenance cost paid by the resident.

Water supply in metropolitan cities is a grave issue. In tier 2 towns, the situation is not that bad. If a building gets its water supply from a tanker, that adds to maintenance charges. Building societies without borewells or supply from municipal corporations tend to have higher maintenance costs.

Issues and challenges

The main issue with esident welfare association is defaulters or those who do not pay for maintenance. Affordability can be an issue. Sometimes, a homeowner who is not willing to pay higher charges may try and form a lobby within the apartment block or society.

The challenge for the RWA is to recover the money and treat such cases with a firm hand. Failure to deal with the issue may motivate others to not to pay the maintenance charge, due to which the society/building will suffer.

The appreciation of rates is the biggest concern for some homeowners. They want to the maintenance charge to be fixed on square foot basis, and so resist any additional costs.

Some societies these days try to tap additional sources of income. This includes the installation of mobile towers in the building, and renting out the flats of NRI owners or whose details are not known and who have not paid for the maintenance of the society. Penalties on defaulters that can go up to cancelling the possession and selling of the property are also enforced in some cases.

Whatever the case, it’s rarely that these funds are siphoned off or not charged. Keep saving and setting aside the maintenance amount, because non-payment after reminders can cost you your sweet home.

As the end user of property you can analyse the charges better than an investor who rarely visits the property. If you are an investor and looking forward to holding the property for a long term, then extra maintenance cost can prove to be a hole in your pocket.

You must calculate and ascertain the actual benefit after adjusting such costs before acquiring the property. Many builders offer attractive discounts by increasing the maintenance cost; buyers should be alert.

Latest Realty News

Top realtors like DLF, Tata Housing, Fire Capital rush to hills to tap holiday home demand
Nov 09, 2013
DELHI: Luxury holiday homes in the hills are once again becoming an object of desire and India's top real estate companies are ready to meet this demand, especially as the slowdown has eroded sales in urban markets. Entrepreneurs, retired industrialists and top executives are all looking to pick up a second home to get away from the hassles of city life.
Corporate Governance – Reciprocating Sustainability
Nov 08, 2013
DELHI: Corporate governance must be recognised as a huge chance for land organisations to enhance the worth of their endeavour.
Gurgaon Extension: Emerging affordable alternative to Gurgaon
Nov 08, 2013
DELHI: With Gurgaon having experienced a real estate boom, the next destination that’s going to attract investors is likely to be Gurgaon Extension: the new name of fast developing Sohna Road. Close on the heels of its new Master Plan 2031, new group housing projects, townships, plotted developments and luxury projects have been announced leading to what realty experts say will result in a boom in the coming years.
Noida to become luxury private residence hub in North India
Nov 08, 2013
DELHI: Noida real estate market touched a new high after worldwide luxury hospitality giant Four Seasons launched its private residences by Four Seasons at mix land-use property in Delhi One with a cost of Rs 3,500 crore.
Gurgaon makes CCTVs mandatory for housing societies
Nov 08, 2013
DELHI: The Gurgaon administration on 7th November made it mandatory for housing societies in the district to install CCTV cameras.
3C Company to invest Rs 3,500 crore on mixed-use project in Noida
Nov 08, 2013
DELHI: Realty firm The 3C Company said it will invest Rs 3,500 crore on developing a mixed use project at Noida comprising a 5-star hotel and branded homes, to be managed by hospitality major Four Seasons Hotels and Resorts.
Aditya Birla Realty Fund invests Rs 125 crore in Tata Housing’s dwarka project
Nov 08, 2013
DELHI: The real estate fund of Aditya Birla Group has invested Rs 125 crore in a residential housing project being developed jointly by Tata Housing and Sidhartha group on the Dwarka Expressway in Gurgaon, two people familiar with the development said.
Parsvnath looks to monetise land assets in southwest region
Nov 07, 2013
DELHI: Realty firm Parsvnath DevelopersBSE -0.38 % today said it plans to monetise non-core land parcel in South- West India either through joint ventures with local builders or outright sale of plots.
DLF Q2 net profit drops by 28% to Rs 100 cr
Nov 05, 2013
DELHI: India's largest realty firm DLF Ltd reported 28 per cent fall in its consolidated net profit at Rs 100.05 crore during second quarter of the current fiscal due to lower sales and higher interest and tax outgo.
In key markets, realty prices may fall 10-15% in months
Nov 05, 2013
DELHI: In what could soon bring some cheer to home buyers, property prices are expected to fall 10-15 per cent in select markets over the next few months, as developers are trying to cut down on inventory and push sales.

Latest Realty News Of State

Realty Talk's