Buying an apartment in India can be exciting. But it also can be confusing sometimes. Along with finding the right location and apartment, buyers also need to know the probably hidden costs involved in the process. These costs can increase the overall cost of the property purchase.
This article explores some hidden charges buyers may incur when investing in real estate.
Stamp duty is a state tax levied on buying a property. The stamp duty rate varies from state to state and can range from 4–8% of the property value. Buyers should factor in the stamp duty while budgeting for their property purchase. Registration fees are payable to the local government for registering the property in the buyer’s name. The registration fee can vary from state to state, and buyers should research the applicable fee to avoid surprises.
GST is another hidden cost applicable to the purchase of under-construction properties. The GST is a tax levied on goods and services sales in India and applies to under-construction properties. The GST rate is currently 5% for under-construction properties, and buyers should factor this while budgeting for their property purchase.
Buyers may have to pay legal fees to a lawyer for reviewing and drafting legal documents related to the property purchase. The charges vary depending on the lawyer’s experience and the complexity of the transaction.
Buyers pay brokerage fees if a real estate agent is involved while buying a property. The brokerage fee can range from 1–2% of the property value.
Many apartments come with common areas and amenities that require maintenance. Buyers may have to pay maintenance charges to the building society or the developer. The maintenance charges can vary depending on the amenities and the apartment size.
Property tax is a local tax levied on the property owner by the municipal corporation or local government. The property tax can vary depending on the location of the property and its value.
Buyers may have to pay if they wish to purchase a parking space. The parking charges can vary depending on the location and parking space size.
In conclusion, buying an apartment in India comes with several hidden costs that buyers need to know. These costs can significantly increase the overall cost of the property purchase, and buyers should factor them while budgeting for their purchases. Conducting thorough research and consulting with a reliable real estate agent helps buyers make informed decisions and avoid surprises.
Shapoorji Pallonji Real Estate offers assistance not only in helping you with some of the best properties in the country but also figuring out your total cost for investments of every size. To know more about our projects all over the country, visit shapoorjirealestate.com.
Originally published at http://realestateandepc.wordpress.com on March 13, 2023.
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