Buying a Under Construction home is one of the most easiest tasks ever. It is simple, choose a location, the project, speak to the developer, agree on the price and yes, you have a deal.
It is very important, that one studies a little more in detail. I am highlighting below a few points, which you must review before you sign the cheque for the New Home or the Investment. Each Developer has a different way of adding Car Parking charge.
1. Ensure that you understand the Carpet and Built Up Area.
2. Rate is quoted on what area.
3. Floor Rise – Yes and from which floor.
4. PLC – A lot of developers in Mumbai have started applying a Preferential Location Charge, which typically means the best views would be expensive, however, in a city like Mumbai, one has to really judge, if his views are being blocked in future, before putting the money down.
5. Infrastructure Charge – Depending on the kind of plot and the infrastructure around needs development, the developers charge an X amount of money PSF.
6. Club House and Health Club Charges – If the project has such amenities, one has to pay for it.
7. Electricity, Gas, Water Meter Charges
8. Society Formation, Corpus Fund and Legal Charges. (All the fees paid by Developers for paper work is indirectly paid by you and you cannot argue or change this.)
9. Maintenance in Advance for 6, 12, 18 or 24 months
10. Property Taxes in Advance
These are the above charges you will have to pay prior to you getting your home, so the Expenses are
> 100% For Purchase
> 5% Stamp Duty
> 1% Vat
> 3.71% Service Tax
> Rs.30000/- Registration and upto Rs.4000/- for Scanning and Agent Fees.
So in short, your new home possession costs is around 15% more than the original cost. So while selling please factor these and don’t remember your cost of purchase per sq.ft which you did earlier and sell based on the same.
Sandeep Sadh
CEO – Mumbai Property Exchange.com
