Investing in a new home is both big and important decision of ones’ life. It is one of the most significant investment one could ever make. While going ahead with this utmost important decision of our life, we generally consider most apparent costs attached to it. Consequently, loads of disappointments come across in the form of new and unknown hidden costs that are very much part of the total cost of your dream home and these unexpected costs have the capacity to take the zing out of your home buying happiness.
These additional costs, which off course comprises of big amounts raise the overall budget by 25% (approximately and may vary from project to project). Hence, it becomes imperative to get first hand information on all these charges before signing any legal purchase papers.
In keeping with the view of reputed Real Estate Developer in Jaipur, following are the major costs that has a big share in the overall costing of your property and that every property buyer must know about–
Registration & Stamp Duty
The registration fee is the cost that the property buyer has to pay in addition to the stamp duty. The fee paid will get the buyer property on his name. The amount of fee is calculated at 1% of the total property cost or the market value of the property, depending upon location of the property. The fee is paid to the state government and hence vary from state to state.
Similarly, stamp duty charges are also state specific and are usually 5 to 7% of the property value.
Service Tax & VAT (Value added tax)
Again, the amount paid goes to the state government. The VAT (Value added tax) applies only to the under-construction properties. Hence, whenever there is handover of property from developer to buyer, VAT will be applicable. The charges generally range from 1 to 5.5% of the value of the property under consideration.
Unlike VAT, service tax is charged and collected by the Central government. However, just like VAT, it is also applicable on under-construction properties. Service tax is a function of the property cost and other charges like – maintenance, PLC, etc. The amount is generally 8 to 10% of the property value.
The builder usually charges the maintenance deposit advance in case of new societies. Though in the existing projects, the amount is charged by the RWA. The amount paid covers the common amenities offered with the property, which typically include – club house, gardens, parks along with the basic amenities like corridor cleaning, garbage collection, street lighting, etc.
We all need a parking space to park our vehicles and generally this space is not included with the property you buy. Thus, the buyer has to pay extra amount to purchase the same. The cost of the parking space depends on various factors:
1- The size of the parking space
2- The number of parking spaces – buyer can buy more than one parking spaces
3- Open or covered parking space
Incase, the buyer is not interested in buying the parking space, he can even refuse the seller but then the seller has the right to sell the same to another buyer as well.
PLC or the Preferential Location Charges
It is undoubtedly a great experience to have a home facing a park or a pool, or to stay at the top floors of a high-rise building. But the buyer must know the fact that all these attributes comes with extra costs. As the name suggests, the PLC or the Preferential Location Charges is the amount paid to the developer for the property that has a better layout, location or position in the project.
Since, PLC is a subjective parameter, the charges levied will vary from project to project, which means it is the developer’s call. The charges vary from floor to floor, from tower to tower, any special attributes the unit carries will increase the PLC amount.
Important Tip – For getting fair deal in property, it is important that you deal with reputed Real Estate Builder in Jaipur.