Buying a home is one of the biggest decisions most people will ever make, as it involves a huge financial transaction. For this reason, people usually calculate the initial costs of buying a home but do remember that this is just the initial cost. If you are planning to purchase a home, let’s say in the metropolis of Mumbai, then always calculate the total cost of buying a home in Mumbai rather than just calculating the initial expenses.
Doing this will give you transaction transparency, which will help you plan your house purchase as per your planned budget. Scroll below for the procedure for identifying the home buying cost in real estate in India.
Estimate the Total Cost of Buying a Home
Basic Cost
This is the price that developers promote as the cost of the property.
GST and Service Tax
The Goods and Services Tax (GST), which is 5%, must be paid if you buy a property in India that is still under construction. There won’t be any GST imposed, though, if you select a ready-to-move-in property with a completion certificate.
Stamp Duty and Registration Charges
The buyer must pay stamp duty to the state government 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%. The court assesses a registration fee for it, which is typically 1% to 2% of the agreement’s worth. Registration is the final legal agreement between the buyer and seller confirming the ownership status.
Legal Charges
In cases where more due diligence is required beyond the price of registration and stamp duty, a builder may request payment from the customer to cover the fees of a surveyor or lawyer. Please be aware that all fees are determined based on the carpet area under RERA. The complete area of the floor that can be utilized inside the apartment’s walls is considered to as the carpet area under the RERA Act. Areas like an open terrace, balconies, shafts etc. are excluded from this.
Interior Cost
Purchasing the property is just like buying a shell. After purchasing a property, one must unavoidably spend money having the interiors customized to their tastes and needs. Depending on the precise type of interior work being done, this expense could be rather expensive. However, it is generally believed to be at least 1% to 2% of the total cost of the property.
External Development Charge
Government officials may impose a per-square-foot external development levy. This fee is levied to maintain and develop the neighborhood around the property site. This varies depending on the location of your house, which you must include in the total cost of purchasing a home India to be on the safe side.
Miscellaneous Charges
This could be the costs incurred from hiring packers and movers, for example, or it could be the bank loan inspection fees that are included in the home loan amount and that you will have to pay as part of the loan repayment. Also, it might include a maintenance deposit, brokerage fee, parking space fee, and so forth.
Summarizing the above-given ultimate guide will surely help you estimate the total cost of purchasing a home India. By doing this, you can prepare for your dream home purchase with ease. However, if you are planning to buy your dream home in Mumbai, you can always check Indextap for top properties in the residential sector in MMR.
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