The Most Common Financial Mistakes to Avoid When Buying a House
By Bricksnwall | 2026-02-13
For many people, buying a house is the most important financial choice they'll ever make. For Indians, purchasing a home may be very emotional, and it's easy to let the enthusiasm of the process get in the way of common sense. This is why you should know how your choices will affect your finances and stay away from the most common blunders people make when buying a home in India. We know you're looking for checklists for buying a flat before you do it, so here's a basic one that can help you make smart money choices.
A lot of buyers only think about the price of the property and don't think about the other fees that come with it. Stamp duty (5–8% depending on the state), registration fees (1–2%), GST (5% for properties that are still being built), brokerage (1–2%), and interior costs can add 15–20% to your budget. The cost of buying a home is just the beginning of your home financing. You also need to think about the costs you'll have once you buy it.
Use calculators on the internet to figure out how much everything will cost.
Talk to builders about not having to pay for things like clubhouse fees.
2. Taking out too much money on a home loan
It may be tempting to take out the most money that banks would lend you, but going above 30% of your monthly salary in EMI is dangerous. A job loss, a medical emergency, or a rise in interest rates can all stop payments. When you get a home loan, you need to plan for unexpected events and crises.
What to do instead:
To save on interest, pick a shorter term (15–20 years).
To lower the cost of the loan, put down at least 20%.
3. Not doing due diligence
When purchasers are in a hurry to close the deal, they typically omit important checks. If a property has legal problems, uncertain titles, or unpaid bills, it can make your investment a nightmare.
What to do instead:
Check the state's RERA portal to make sure the builder is registered with RERA. Make sure there are no liens or encroachments on the land.To avoid fines in the future, make sure you have the right permits for utilities like water, power, and sewage.
If you take the first loan offer you get, you could lose lakhs. Banks, non-banking financial institutions (NBFCs), and housing finance companies all have quite different interest rates. Financial planning generally means looking at all the options and picking the best one.
Look at the fees for processing, prepayment, and foreclosure.
If your credit score is 750 or higher, you can try to get reduced charges.
Check to see if you qualify for government subsidies like PMAY, which can give you up to ₹2.67 lakh in interest.
5. Not remembering future costs
Your budget can be tight when you have to pay for maintenance, property taxes, and growing energy bills. If an apartment has luxury features, it might cost ₹10,000 a month to keep up.
To lower your bills, buy energy-efficient appliances like BEE 5-star ACs and LED lights.
A lot of buyers don't take advantage of deductions under Sections 24 and 80C, which means they pay more taxes than they need to. When you sell your home, there are typically a lot of tax issues to think about. It's best to talk to a knowledgeable financial advisor about these so you know what they are.
Instead, do this:
Claim up to ₹2 lakh on home loan interest (Section 24).
You can take off ₹1.5 lakh from your principal repayment (Section 80C).
If you own something together, split the deductions between you and your spouse to get twice the benefits.
A single event, such a flood, fire, or earthquake, might wipe out all of your funds. But 70% of Indian homeowners don't get insurance because they want to "save money."Before you buy a property, keep in mind that well-known real estate developers
What to do instead:
Get a typical house insurance policy that covers the structure and contents of your home. It should cost between ₹5,000 and ₹10,000 a year.
Falling in love with a house can blind you to red flags. It's usual to spend too much for a "vastu-compliant" property or a "corner flat with a view."
Go visit houses several times at different times of the day to assess things like noise levels and water supplies.
Use applications like Magicbricks or NoBroker to see how much things cost in your area.
9. Not thinking about how much you could sell it for
It can be challenging to sell a property later if it is in a bad location or has an old design. For example, residences in Delhi-NCR that are close to landfills or industrial areas sometimes sell for less than what they are worth. One of the most common tips for buying your first home is to consider its resale value, and with good reason.
Buy in locations that are growing and getting new infrastructure, such highways and metro lines.
Don't make the inside of your home too unique, as this can turn off buyers.
A 2BHK might suit your needs today, but expanding families or remote work trends could demand more space in 5–10 years.
What to do instead:
Choose layouts that can be changed (for example, study rooms that can be turned into other rooms).
Make sure the society lets buildings grow vertically (adding a floor).
Buying a house in India is a long process, not a quick one. You may make a safe investment now that you know what not to do when buying a house. Just plan carefully, be patient, and talk to professionals like a CA or lawyer. Keep in mind that a home is more than simply an emotional possession; it's also a long-term financial commitment. If you avoid these mistakes, you'll not only get a house, but also a future without stress.
