Know about these property costs | Fusion - WeRIndia

Know about these property costs

Know about these property costs

In this festive season, several people are interested in buying properties. Whether you buy it for your residence or for investment purpose, there are certain hidden costs associated with properties.

Normally real estate costs are classified into two categories. One is the cost paid to the builder or seller of the property and another one is the statutory or legal costs to be paid to the government.

Generally, 85 percent of the total cost obviously goes to the sellers and the remaining costs are paid to the government.

Here are some of the costs associated with property buying:

Basic cost is the general price paid to the seller computed as per the square feet.

Other builder charges include the parking charges and infrastructure development charges like water, electricity, maintenance, and other amenities such as preferential location charges, power back up etc. If you are opting for a high-rise flat, then you need to pay a premium price for your flat in Bengaluru and Mumbai which is quite opposite to pay a premium price for a flat on the ground floor or near to the ground floor in the NCR. These are normally in the range of ₹25 to ₹100 per sq.ft. per floor. Sometimes, they may be even higher.

Brokerage charges are to be paid as a commission to the property agent.

Registration and stamp duty is paid to the government in the range of 5 to 10 percent according to the properties located in various states.

Goods and Services Tax (GST) is to be paid on under-construction projects. It is 12 percent of basic sale price and 8 percent for affordable housing projects. Some even attract 18 percent GST which include floor rise flats, club house etc.

Property tax is to be paid to the government based on the locality, basic cost, build-up area, age criteria etc.

Insurance is not mandatory; yet, it is a wise step to pay insurance premium for your home to protect it against natural calamities.

Other miscellaneous charges like 1 percent TDS is applicable on the property costs above ₹50 lakhs. Loan processing fee, legal advisory, documentation charges etc. are some other miscellaneous charges to be borne by the property buyer.

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