Buying a new house is a big decision and one of the most important investments of our lives. In the excitement of buying a new home, we always consider the obvious costs, but somehow overlook various other hidden costs incurred in the buying process. Consequently, an encounter with a whole bunch of hidden costs leads to disappointments and overshoot one’s budget. Thus before you go for the big purchase, it becomes imperative to get a clear picture of the total cost so you can decide your budget well.
Here we have listed the hidden costs that you must consider in your budget.
1. Stamp Duty and Registration fee
These are mandatory and unavoidable taxes. It is paid by the buyer to the state government in order to get the property registered with his/her name. These charges can vary from state to state from 5–7%.
2. Maintenance Deposit
Many builders these days charge an advance maintenance deposit for a particular time frame, ahead of time. This usually includes common amenities like garden, clubhouse and also the basic infrastructure facilities such as lighting, water etc..Maintenance deposit are subject to the locality, land value and type of home you are hoping to purchase
3. Goods & Service Tax (GST):
GST is levied by the central government on the purchase of under-construction properties. However, there is no GST on buying properties which have already received the Completion Certificate (CC).The tax is 12.36% of 25% cost of the under-construction property,.
4. Parking Space Cost
Parking space is a handy amenity to have in apartments but then again it is not an amenity that is given to you outright, you have to pay the builders an additional cost to claim your parking space. Depending on the kind of the property, location and other features, builders can charge you anyplace between Rs. 1 to 5 lakhs for a parking spot.
5. Preferential Location Charges (PLC): PLC is an additional charge that builders can levy on all flats which has advantage over others in terms of location. This may hike the value of the property from 2-3 lakhs.
While there is no way to escape these home charges, LegalProperties team can assist you to make an informed and money-saving decision for purchasing your home. We can also help you in opting the best financing option.