When Buying Apartments in Bangalore, you take into account all the obvious costs; you hope for reasonable home prices, reliable housing loans, low mortgage rates, etc. However, you lose out on a lot of other drawbacks that are related to this challenging home-buying procedure. Due to these unforeseen expenses, the property's advertised price is increased, costing the buyer more than anticipated. Many times, buyers enter into a contract based solely on the base price provided by the builder or the seller, oblivious to several hidden home fees, including registration and stamp duty fees, maintenance deposits, brokerage fees, parking space fees, interiors fees, service tax, and preferential locality fees.
Let's examine each of the most popular extra hidden costs individually:
Fees for registration and stamp duty:
The buyer must pay stamp duty to the state government in order to get the house registered in his or her name. If the stamp duty is not paid, the house will not be registered in your name. These fees might vary from state to state by 5-7 percent. The court imposes a registration fee for it, which is typically 1-2 percent, and registration is the complete and final legal agreement between the buyer and seller confirming the change of title. Although it can seem like a modest sum, it adds up to a lot.
Let's imagine, for instance, a 3 bhk Luxury flat for sale in sarjapur road has a basic cost of 3.75 crore rupees. In this instance, the registration fees will be 3.75 lakh rupees, and the total stamp duty will be 18 lakh rupees. Therefore, the total cost for stamp duty and registration fees will be between 20 and 21 lakh rupees.
Deposit for maintenance:
Builders demand up to a two-year maintenance advance or deposit; this is typically covered by shared amenities, parks, and lighting. Members of the society charge a deposit on existing structures as insurance against potential future damages. Similar to other property fees, this one can get rather expensive depending on the number of amenities offered or the ongoing maintenance cost. The cost may occasionally increase even further if clubhouse membership is included. This sum varies depending on the society and the place.
For instance, in Bangalore, maintenance costs are higher in Basavanagudi and Indira Nagar and lower in Whitefield and Sarjapur Road.
Agent Commission:
While not precisely a secret expense, this is one of those home costs that you might overlook when purchasing a property. The brokerage fee is what the broker, who acts as a middleman between the buyer and the selling, charges. Most brokers charge between one and two percent on Flats for sale in Bangalore within 50 lakhs, but others are pricey and may charge more. It is preferable to discuss the specifics and settle this with your broker right away.
For instance, in the scenario described above, the brokerage will increase the base cost by an additional 3.75 lakhs.
Parking spot:
Sadly, parking space is not provided when you purchase the house due to the severe lack of space in our nation. This cost may be more or lower depending on where you reside and the size of the parking space that is readily available. This charge is a separate expense that must be paid to the vendor. The seller has the full right to sell it to a different society member if you fail to pay this charge. The cost of a parking space is also determined by the project's location; it typically starts at a lakh and can go as high as four or five lakhs, which adds to the list of unadvertised housing costs.
Interior Design:
This is the biggest and most important cost. You can't avoid it because you can't move in without good interiors. This includes things like painting, fixing plumbing, buying new furniture or having furniture made, using electric appliances, and so on. Even if you make a lot of sacrifices and cut back, this cost can easily reach Rs. 10 lakh. You might save some money if you buy furniture online, but the cost of interiors is at least Rs. 20–25 lakhs if you change everything and Rs. 15–20 lakhs if the basic interiors are already done.
Tax on goods and services (GST):
In India, there is a Goods and Services Tax that must be paid on any property that is still under development. GST is a tax that is paid to the government, just like stamp duty and registration fees. While the affordable housing developments only draw 1 percent of the GST, the property that is still under construction is subject to a 5 percent GST. On properties that are ready to move into and on projects that have a certificate of completion, there is no GST.
Locality Preference Fee (PLC):
The preferred location/location charge (PLC) is the additional cost incurred to reserve a unit in a better position within a specific layout or complex. Although this varies from builder to builder, Luxury Apartments in Bangalore typically have higher Preferential Location Charges. Penthouses perched atop buildings and villas with gardens or a lake view, for instance, have exceptionally high PLCs. This cost is not fixed and varies from builder to builder as well as periodically, unlike stamp duty and registration fees, service tax, or VAT.
Conclusion:
While it is impossible to avoid these home costs, keeping them in mind can help one make a well-informed choice and determine the cost with accuracy. The total of all these additional expenses can increase your home's actual cost by 10-15%. It is important to note that the lender will not factor these charges into the loan amount if you are thinking about getting a home loan to buy a house. All of these costs would be paid out of pocket by you, and the sanctioned amount will entirely be determined by the property's valuation. Therefore, you must include all of these extra costs when estimating the total cost of the house and start making provisions for them as soon as you begin your planning. That will make buying a home much simpler.
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