Tag: Registration

Stamp Duty Ready Reckoner Rates Mumbai

Stamp Duty Rates Mumbai

Every December the Government of Maharashtra revises the Stamp Duty ready reckoner rates. These rates usually go up from 10 to 20% each year and thus making the minimum purchase price in a particular location on the basis of the Ready Reckoner Rates.

Let us understand what it means for a Property Buyer or an Investor in case you have not paid the Stamp Duty till date :

1. If you have not paid the Stamp Duty still and have taken the property as an Investor or an End User a few years back, then you just need to check the rate your agreement value is and compare the same with the existing Ready Reckoner Rate. In case you are nearly at Par, then you have 2 choices, either to do the Stamp Duty now or wait for the Price hike in the ready reckoner, if the rate goes up by 10% for example, then you will have to pay 5% of that 10% increase more than what you would have not paid otherwise.

2. Most of the Investors who have bought A grade or expensive properties already may not be impacted by this, but it important and worth it to check with your Developer about the present rates in the Location.

It will be interesting to see what the Government comes up this December, owing to the fact, that the property market has shown signs of depression. Also, if the Government increases the Ready Reckoner Rates, then the most advantage situation is for the Developers who may have smaller projects with lesser amenities or no amenities, there basic rates goes up and they are easily able to justify to the buyer that look the Circle Rates or the Ready Reckoner Rates are already high.

So it is in your best interest to make that one call to the Developers and understand the Agreement value and the corresponding Ready Reckoner Prices.

Sandeep Sadh

 

 

Incidental Expenses while selling Real Estate in Mumbai , India

The below article contents are most suited for Selling properties in Mumbai, Thane and Navi Mumbai as the same is based on local laws and market practises.

1.Transfer Fees – Usually the same is Rs.25,000/- and in most cases, the same is equally shared between the Buyer and the Seller unless agreed upon in the manner decided mutually between the buyer and the seller.

The Interesting part here is that, the above is pretty common in most of the societies, however, a lot of societies, owing to the lot of expenses they have, they try and request the outgoing member to give a donation to the society, which is a very usual practise in Mumbai, Thane and Navi Mumbai. This amount can be any amount decided by the Society in the General Body Meeting.

The Second part here, in the absence of the Society, where the Builder/Developer is present, the Developer also can levy a transfer fees at his discretion. A lot of developers do intimate you well in advance about this and a lot do not, hence while buying property it is very important to clear the resale transfer fees.

It is been heard in the market, where the property appreciation is more than 100% over recent years, the developers have requested for amounts even upto 5% of the apartment value as Transfer Fees. This is some thing which the buyer should take care of.

2.Long Term or Short Term capital Gains.

The seller needs to ascertain his capital gains, if he falls under Short Term or Long Term Capital Gains.

3.Stamp Duty and Registration

This expense is paid by the New Buyer.

Sandeep Sadh

CEO – Mumbai Property Exchange.com

Ascertaining your Under Construction Home Costs

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