Buying a house is considered as one of the most significant
investment by Indians. It is one of the biggest decisions to invest all that
they have in buying a real estate property. Thus, it becomes very difficult for
middle class buyers to handle any new surprising hidden costs on purchasing a
property. MJR Builders are one of the renowned and trusted builders who provide
top quality residential and commercial spaces in different areas of Bangalore.
They focus on assisting clients in property buying, selling and renting
decisions. For any kind of residential plans in the Whitefield, Hosur and
Electronics City Phase -1 areas of Bangalore, you can contact MJR Builders.
You might think that if you are capable of paying for the
cost of the property, you have made it. But, this is not so. There are many
hidden costs that if added, might come up to 25-30% of the cost of the
property. So, you must be aware of all these extra costs and be well-prepared
with an extra amount of money other than the purchasing cost or else all these
expenses might use up all of your savings.
Registration costs
Registration cost is a charge levied by the government on
property transactions to help you register and enroll for a property you have
decided to buy. The amount of the registration cost depends on the total amount
of the property. On an average, it amounts up to 2 to 3 % of the cost of the
property.
Stamp duty
Stamp duty is a charge that is levied by the government on all
documents and transactions made during the purchase of a property. It varies
from state to state but, is about 5 to 7 % of the total cost of the property.
The assessable value of a property includes components like saleable area
value, car park value, floor rate value and value of amenities.
Service tax and VAT
Service tax and VAT are levied by the government only on
under construction properties. Service tax is 12.36% of one-fourth the value of
under construction property and VAT is charged on the construction value of the
project. Together, these two taxes may cost you 8-10 % of the total property
value.
Interiors
It is obvious that the choice of the builder won’t match
yours. You are bound to make some or the other changes in the interiors once
you acquire the property. This is a point that may not click your mind before
purchasing a property. It also seems like it is not a considerable point and
won’t cost much. But, it should not be ignored because even though not as
expensive and that it entirely depends on the type and nature of changes to be
made but, on an average it would require around 1 to1.5% of the cost of your
property.
Parking
Earlier, there were no charges for parking spaces. But, since
around the past ten years, builders are charging an additional upfront payment
for parking space allotment in large residential complexes. The amount charged
depends on the type of property, locality and type of parking space provided
but, it generally adds up to around 2 to 5 lakhs.
Delay in acquisition
It is very normal for a project completion to be delayed by a
few months by builders in India. The delay in acquisition of the property might
lead to various expenses like extra interest paid to home loan lenders. Thus,
even if you are sure you will get the property in hand on time, you must still
have some extra funds in calculation just in case you face a delay during the
process.
Other charges include processing fees by banks for home
loans, costs of lawyer and notary and costs of insurance and its premiums.
SUMMARY
Buying
a real estate property not only involves the property cost but, it also
involves other hidden costs like registration costs, stamp duty, service tax,
VAT and costs of interiors, parking, lawyers, notaries and insurance. All these
additional costs add up to around 25-30% of the cost of the property.
