A little dot on the map of India, yet a lot of people want to live here- Mumbai! The dream city for many of us, the city that never sleeps, a city with all the life. Everyone sees the dream to have a house of their own, but it’s tough to own a home. For buying your dream house, you must be planning for a long time, saving for it, and looking for that one best opportunity to invest in.
Apart from the value of the house, there are certain other charges that a homebuyer is liable to pay to the real estate developer while buying a house. This blog will tell you to count on these 4 things before buying a property in Mumbai.
1. Registration Charges & Stamp duty
When you decide to buy a house, specific registration fees arose to pay before writing the property under your name. Another charge that is put up on the property is the stamp duty, it is a specific charge that is charged on the value of the property of a particular state. For Maharashtra, the stamp duty is 5% of the value of the property. And the registration charges include 1% of the amount of stamp duty.
2. Goods & Service Tax
The tax is levied by the central government and is applicable to the projects that are still under construction and the buyer has bought the property. Initially, the client was supposed to pay two taxes, VAT & service tax but now they both are just one i.e. GST. If the developer has completed the construction & holds a certificate of it, then the buyers need not pay anything. The charges for GST are 12% on the value of the property.
3. Maintenance & Parking Charges
As all of us cannot afford an independent house, so society is the next best option. Buying a flat in society is not the only thing we have to pay for. After paying the value of the house, the other charges that come in the picture are maintenance & parking charges. The maintenance charges will go in the society’s fund that is used to take good care of the society including maintaining public areas, swimming pools, etc. Parking charges are the ones depending on the value of the flat. Thus, include them in the value as well.
4. Preferential Location Charges
A sea-facing flat is what you preferred, and getting one in a city like Mumbai can end up cost you a little more. That little more is your Preferential location charge (PLC). So, PLC is not charged on all the flats but on a few, is it? Depending upon what is extra that the flat is offering, the developer charge from the homebuyer.
It isn’t really tough to get a home in Mumbai, but what is tough is getting the exact cost of it. So next time when you’re enrolling yourself with the real estate agent, do not forget to ask him about the different charges that will incur with the value of the property.
Happy Hunting!
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