Ever experienced? you have visited a residential project for buying a Flat and came back disappointed because cost which was mentioned to you was just a Basic Cost, but there are so many other costs associated with a Purchase, which will make the property out of budget for you. If Yes, you are not the only one. Welcome to group of Property Hunters, who wants to fulfill their dream of owning a House which is affordable yet have all the features, they want to enjoy.
Buying a residential flat can be a tiring process, if you are the first-time home buyers. Total cost which you may have to incur to purchase the flat also varies from Project to Project, not just the basic cost, but there is various other cost which varies. We are here to bring to you consolidated knowledge on different costs and why it is there, so you can decide, which one is genuine and fair and which one should be aware of.
List of Costs included in a Total Cost of Flat:
1. Basic Sale Price (BSP) Or Basic Price:
BSP is the value that is promoted by the developer and it’s the main price of your property. This is normally designated as Per Sft Price. This is multiplied with Built-up / Carpet Area to get the cost figure.
2. Preferential Location Charges (PLC):
A PLC or preferential location charges is an additional cost that a home buyer has to pay for booking a unit which has an advantage over others in terms of location. A preferred location within an apartment complex may mean an apartment that faces a park, Corner Flat, East/West Facing Flat, Club House View or open view from the balcony.
3. Floor Rise Charges:
These charges are applicable in high-rise apartments for higher floor flat purchase. Normally, it is charged from 5th Floor Onwards and ranges from Rs.20/-Sft to Rs.50/- for each higher floor. For Example, for 10th Floor flat, Floor rise charges @ Rs.20/- per floor would be Rs.120/- Per Sft (When Floor rise charges are applicable from 5th Floor onwards).
4. Car Parking Space (CPC)
Have you ever bought a parking lot in India? If this is often the first time you are buying a flat in a society, then this could come as a surprise to you. If you want you can purchase both covered and open parking.
5. Maintenance Charges
A certain amount is charged by the builders from potential buyers to meet the maintenance and upkeep of the apartment including common areas. This typically ranges between Rs.2/- Per Sft per Month to Rs.4/- Per Sft per Month. This is usually collected for 2 years in advance to maintain the project until society is being formed to take over the responsibilities.
6. Electric connection charges
Do not be under the impression that if you have paid the EEC and power back up charges, you are finished your electricity needs. EEC is an amount charged by developers only to line up the infrastructure for getting electricity to your apartment.
You will need to pay the particular application fees for putting in the electricity meter and a connection to the electricity board of your state for actually getting electricity. This cost may also include individual flat meters, which may be installed by the developer for all the flats.
7. Water Connection Charges
These are the charges collected by the developer for Water pipes infrastructure development and govt water connection charges. This may also include individual water meter, if installed by the developer for all the flats to measure usage. This will be one-time standard cost. It may range from 50,000 to 1,00,000 normally.
8. Fire Fighting Equipment Charges (FFEC)
All projects residential or commercial are supposed to install fire safety devices and firefighting equipment.
9. Infrastructure Development Charges (IDC)
These charges are paid on to the state government by the developer for developing the infrastructure for the project. The fees vary from state to state.
10. External Development Charges (EDC)
These charges are again paid direct to state government by the developer for developing the external areas surrounding the project. The charges vary from state to state.
11. Power Back-Up Charges
A power failure is also an alien term in developed countries but India wants a good power back-up. There are charges for setting up the power back up plant inside your society and keep your air conditioners running even when there is a power cut from the state electricity board.
12. Club Membership / Corpus Fund
This has become a standard norm these days to form a club inside a society itself for recreational activities. Your society might or might not have this facility however if it has, it doesn’t come FREE. This initial fund forms the basis for smooth society functioning.
13. GST Tax
This is an absolute killer as far as shopping for a property is concerned. The government charges you GST tax (Earlier service tax was charged) on the under-construction property at the present prevailing rate on the overall price of the flat.
- There is ZERO GST tax on sale of complex/building and ready to move-in flats where sale takes place after issue of completion certificate.
- GST is applicable at the rate of 18% on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale. Card rate for such flats is 18 per cent, but effective rate is 12 per cent after abatement of 33 per cent (cost of land).
- 5% Flat GST if Developer is not claiming Input Tax Credit.
- Affordable housing GST rate is 1%.
14. Stamp duty and registration charges
These charges are paid to the state government for registering property on your name. This fee is charged as a share of the registered price of the property and varies from state to state. It is fixed at 6% for the state of Telangana.
Shocked!! Yes, but you have to bear these costs to buy a residential flat in Gated Society in India. However, you are not required to visit any builder to know these costs, we at PropAmigo help you understand all these costs, right sitting at your home. Our Total Cost Calculator is one of the unique and first in the industry, Total Cost Calculator which helps potential property seekers understand the cost and estimate the budget of buying a home easily. To experience it yourself, check out the calculator on the below link: https://www.propamigo.com/totalcostcalculator
Visit our website www.propamigo.com to find out the latest gated projects in Hyderabad. Buying property was never so easy, we aspire to make it the friendliest way to buy a property.