Home is not only a dwelling place for an individual but also a dream which involves lifetime savings hence, it is an expensive business. Not only the base amount which you pay to buy a property but also the list of other charges which raise the total expenditure to an unexpected figure which is beyond the limit an individual. Before we finalize a home, it should be advisable to check what all will be total charges and whether the total sum suits your pocket. The base sale price is combination of the Undivided Share (UDS) of land and the cost of construction and raw materials. This makes up almost ¾ of the entire cost of the property. Rest of the components take the total cost of ownership up by almost 25 percent. Hence, lists of the charges which are vital for estimating the total cost of property are here:
- PREFERENTIAL LOCATION CHARGES: While finalising a home always check the location whether it is a corner house, facing park, ground to 2nd floor as the properties which have a location advantage over others in a project are charged a premium by Real Estate Builder which is knows as Preferential Location Charges (PLC) These are normally not hidden but as a buyer should keep in consideration whether the builders had shared him or not as it may vary for different units.
- PARKING CHARGES: These days every other individual in a house has its own vehicle according to his convenience to be independent to do their own daily chores. For parking, parking spaces are the requirement of an hour. No charges are levied on Parking as Parking spaces are not saleable. But Developers charge a heavy sum of Rs 2-5 Lakhs for covered Parking spaces. As a home buyer, one should always keep this expenditure in account as directly or indirectly this cost will be added to the total cost of your property.
- CLUB MEMBERSHIP AND MAINTENANCE CHARGES: Nowadays many new residential projects are coming providing Ultra Modern Amenities and facilities to home buyers with gated security 24*7 hours availability which comes for a cost. Not only buyers has to pay a significant amount for the upkeep but also that amount could be charged on annual or monthly basis hence, Buyers should confirm before finalising a home.
- CIVIC AMENITY CHARGES: Developers usually woo their customers by discount, free gifts and often assure you that they are selling their properties with lot of amenities but that also bears a cost that you have to pay as CIVIC AMENITY CHARGES. While purchasing a property buyer should inquire about these charges. Homebuyers are liable to pay for fire safety, water and electricity backup.
- EXTERNAL ELECTRIFICATION CHARGES AND FIRE FIGHTING EQUIPMENT CHARGES: Home buyers have to pay charges for getting connection from electricity department and also for fire fighting equipment for safety.
- TAXES: While purchasing a property a home buyer also get it registered with registrar’s office by paying Stamp Deputy and Registration Fee .Stamp duty can be 2-6 percent .Charges differ from state and also gender to gender while the registration charges will be 1 percent of the total cost of property to get legal ownership . Service tax and vat is charged for under construction properties.
- DEVELOPMENT CHARGES AND INFRSTRUCTURE DEVELOPMENT CHARGES: The Developers also pass the burden of the External Developmental and Infrastructure Charges to Buyers.
Hence, Buyers should check about and make an inquiry about all these charges and negotiate with developers.