Buying a house is a dream for so many of us. Owning a home can signify different things to different people. But we can all agree that it is perhaps one of the biggest investment we will make in our lifetime, especially if you plan to buy properties in Mumbai. You may have saved up for this and planned for this your whole life. Now, when most of us consider buying a house or a property, we think about of the cost of the house or the property, the cost of building a house on the property and maybe even the cost of furnishing it. But once you get down to actually purchasing the property and registering it in your name, you will be shocked to discover the extra charges that have put you over your budget. It is always better to be aware of these charges so that you can be prepared for them. So keep these 4 things in mind while buying a property a Mumbai:
1. Registration Charges and Stamp Duty:
You liked a house or a flat and you decided to purchase it. To actually become the owner of the property, you need to register it in your name and to do this you need to pay a registration fee to the state government. The stamp duty in Mumbai and across Maharashtra is 5% of the property value. The registration charges are around 1% of the stamp duty. So once you pay both stamp duty and registration fee, you can get the property registered under your name.
2. Goods and Services Tax (GST):
This is a tax charged by the Central government. Earlier prospective home buyers had to pay VAt and Service tax and now both of these have been combined into the GST. GST will be charged only for properties that are under construction. The effective rate that you will have to pay is 12% and this will get you full input tax credit. If you are considering purchasing completed flats in Mumbai for sale, then if the builder has a Completion Certificate, you need not pay this tax. However, if you are buying a flat or a house that is still under construction, then this 12% GST will be charged.
3. Maintenance and Parking Charges:
Nowadays, everyone lives in a society. Only the very rich can afford an independent house in Mumbai. If you can afford an independent house and do not live in a society, then you need pay these maintenance charges. However, if you are
buying a property in a society, then you need to pay maintenance charges to the society. This amount will be typically used for maintaining the public spaces within the society like the garden, swimming pool, clubhouse, gym etc. Common utilities like water and electricity are also sometimes covered in this deposit. If the society is brand new, you will be paying this amount to the builder. on the other hand, if it is a pre-existing society, you will be paying the members of the society.
Another thing to keep in mind is that your parking space is generally not included in the cost of the house. You are required to purchase the parking space and its price will depend on the size of the parking you need, its location and whether it is covered or uncovered.
4. Preferential Location Charges (PLC):
Mumbai is a beautiful albeit crowded city. You may have dreamed of having a sea facing flat. But be aware that this may accrue some extra charges. There are certain flats within the same building which will demand PLC. These may be the flats with a view or flats above a certain floor or a flat with some other special aspect. While there are many flats in Mumbai for sale, they are definitely not the same and you may prefer paying a little extra to get the one you want.
Keep these aboce charges in mind when you determining the budget for your dream house and you will not be surprised with any last minute charges.
