Hidden Charges To Consider Before Buying A Luxury Flat In Lower Parel

By Author: Amol
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Buying a new flat is a daunting task. It involves a lot of formalities, multiple aspects that need to be considered, and many crucial decisions that need to be taken. One of the most important aspects is understanding the obvious costs involved in the process. Then there is a part about understanding the hidden charges that are involved when buying a property such as luxury flats in Lower Parel. It’s not just housing loans and mortgages, it a lot more than that. Home buying is a complicated process and involves dedicated work towards understanding all the hidden costs involved in buying property like 4 BHK flats in Lower Parel. Many times buyers jump into a deal considering only the base price quoted by the developer or builder without understanding about various hidden home charges like stamp duty and registration charges, maintenance deposit, brokerage, parking space fee, interior design costs, service tax, etc.

1. Stamp Duty and Registration fee

Every new home built has to be registered in the name of the owner and there is a lawful process that must be followed compulsorily. Stamp duty is the compulsory fee ...
... which the buyer is supposed to pay to the state government to get the house registered under his/her name. The charges for this registration and stamp duty usually vary from state to state. The house cannot be lawfully owned by a person in their name unless the stamp duty is paid. Registration is the full and final legal agreement between the buyer and seller indicating the change of ownership and the registration fee is charged by the court for the same. This fee is generally 1-2% which may seem like a small amount, however, in reality, it turns out to be quite some fortune. Therefore, it is one of the basic hidden costs that a buyer needs to be well aware of.

2. Advanced Maintenance Deposit

Most developers prefer setting up the advanced maintenance deposits so that the facilities keep running smoothly for the coming years. This deposit may amount for the 2 years worth of maintenance paid in the lump sum amount at once. This usually comes under the common amenities cost that can be used for the maintenance of common amenities like parks and lightings. In existing buildings, it is charged as a deposit by society members in case of any damages that might occur in the future. This amount depends on the number of amenities provided in the project. Sometimes the clubhouse membership fees are also included in the maintenance deposit, but sometimes it is a separate amount demanded by the society. This especially applies to the luxury flats in Lower Parel or the big properties like 4 BHK flats in Lower Parel, or any other areas in South Mumbai.

3. Brokerage Fee

The brokerage fee is not exactly a hidden cost, but it is one of those charges that usually slip from the attention of the home buyers. It is the fee charged by the middleman that arranges the purchase between the buyers and the sellers. Most brokers prefer 1-2% of the total house fees, which like stamp duty and registration fees seems like a low amount, but in reality, is a large sum of money. However, not every buyer goes through the broker and thus they can cut out these hidden charges from their long list of home payments.

4. Parking Space Charges

With such a shortage of space in our country, parking spaces are to be paid separately and are not included in the house cost. The parking space cost can go higher or lower based on the housing space chosen by the buyers. It seems like it should come across included in the cost, but it just needs to be bought out separately at quite a hefty price, and that’s the way it is. It still comes across as a surprise for most people and they are not prepared to cover this extra hidden cost. Parking space pride depends on the location of the project and the parking spot. It usually starts from a lakh and can go up to four to five lakhs, adding to the long list of hidden home charges.

5. Interiors Cost

The projects advertise and provide various interior designing prospects. This is one of the biggest and most important costs. While the proper interior is unavoidable and also a little exciting, it can also be done later at convenience. Aside from that, the mandatory interior cost includes painting, plumbing, electrical appliances, the list is endless. This cost can easily go up to be the highest of all the hidden costs even if it could be cut down to a bare minimum.

6. Goods & Services Tax (GST)

Like every commodity that we purchase, every property under construction is also liable to the Goods and Service Tax (GST). GST also needs to be paid to the government just like the Stamp Duty and Registration Charges. The GST rate is usually 5% on under-construction property and 1% for the affordable housing properties, based on the project. However, ready to move in homes such as luxury flats in Lower Parel are exempted from the GST if they have already earned the completion certificate.

There is no way to avoid these charges, however, keeping in mind all these extra expenses and getting ready to pay them up is something everyone should be entitled to so that when it happens, it doesn’t come across as a surprise