Monday, May 13, 2019

Be wary of the hidden charges while buying property in Delhi

Description: Hidden Charges increase the actual cost of the property; therefore, it’s better to keep in mind these charges while preparing the budget for a new property.


Buying a property in Delhi is one of the most important decisions for those who want to settle in the capital. The buyer goes out of his or her financial capabilities and prepares the budget to buy the property. But often, the buyer ends up paying extra which he or she does not realize. There are a number of extra charges in the form of extra taxes and other fees which comparatively makes the property much costlier than its actual price. This extra amount other than the actual cost of the property hurts the buyer’s pocket as it gets out of the buyers allocated budget for the property. Hence, the buyer needs to be aware of these hidden charges to prepare the budget accordingly, before investing in a new property.

1. Stamp duty and registration fees: 
Getting a property in Delhi registered is an important aspect in the property buying process. It is a final agreement between both the parties that indicate the change in ownership of the property. In order to get the registration done, one has to pay a certain amount to the government. The registration form costs a particular amount, depending on the total property value. Though the charges for stamp duty and registration for Property in India varies from state to state, but usually it is between 4% to 10%. Typically, in a majority of the states, this registration and stamp duty fee adds up to 5% - 14% of the cost of the property. In addition to this expense, there is another registration fee that is payable to the court which differ from state to state and varies between 1% to 2% of the value of the property.  And, above all, there are additional costs that include lawyers and notary fees, who get the agreement done in the court.

2. Service Tax and VAT:
The service tax is applicable on the purchase of any property in India that is under construction while the VAT is charged over the value of the construction of the project. The imposed service tax is 12.36% of the 25% value of the under constructed property. Whereas the imposed VAT is between 1% to 5% of the under constructed property value. Altogether, the service tax and VAT can add up to 8% to 10% of the entire property value.

3. Preferred Location Charge (PLC):
The term Preferred Location Charge, commonly known as PLC refers to the extra charge that is levied from the buyer to buy property in Delhi in their choice of location. This is applicable specifically in a housing complex, layout or residential community. Though this charge differs from builder to builder and project to project. Lavish villas, penthouses facing the sea or garden are most likely to have higher PLCs.

4. Utility Charges:
The charges referring luxury amenities or those linked with the building come under utility charges. This includes parking in open or closed space, clubhouse membership for a lifetime or yearly, firefighting provision, electrical and various other charges associated with Government utilities as well. Apart from these there are other charges involved while buying property in Delhi such as maintenance, security charges, and others also. Security charges refer to the expense for employing security personnel, installing and maintaining security arrangements like CCTVs camera, intercom among others. These extra charges add up to the initial cost of the project in a huge way and become a burden on the shoulder of the buyer.

5. External Development Charge (EDC):
EDC is usually meant for the maintenance of roads, water, sewage, electric supply, lights and development of the surrounding area. It varies from location to location and adds up to 10% of the entire cost of the project. Sometimes the government also levies development charge on the developer. These charges also are also charged in the form of maintenance fees in advance for a longer period of time. This is a great disadvantage the buyer as he has to shell out extra amounts for which he does not prepare himself.


This is a guest post by Seema Chauhan

26 comments:

  1. Find great deals, offers and discounts on the occasion of Eid. Buy your dream home at Amrapali Residential Projects in your budget with Eco-friendly surroundings.

    ReplyDelete
  2. This article has truly peaked my interest. I am going to take a note of your site and keep checking for new details about once a week.
    Flats for Sale in Manikonda

    ReplyDelete
  3. This blog is very nice and informative, for more details visit Foreclosures Daily.

    ReplyDelete
  4. Hi thanks for your information it is nice. Who want stay Best services apartment in hyderabad SkyNest offer best services in corporate stay full accommodation with low budget, full furnished who want move in hyderabad SkyNest is best to provide services apartment
    SkynestIndia launch Service Apartments in Gachibowli Hyderabad. SkynestIndia Offering services in Restaurants, sweets, outdoor catering near our location in Gachibowli, Financial District, Nanakramaguda, Wipro circle, Gachibowli, Hyderabad.
    Service Apartments in Hyderabad
    Service Apartments in Gachibowli
    Restaurants in Gachibowli
    South Indian Restaurant In Gachibowli
    North Indian Restaurant in Gachibowli
    Hyderabadi Biryani In Gachibowli
    Corporate Lunch Services in Gachibowli
    Corporate Party Orders In Gachibowli
    Outdoor Catering Services In Gachibowli
    Chinese Restaurant in Gachibowli
    Sweet Recipes In Gachibowli

    ReplyDelete
  5. i read your awesome blog.Thanks for sharing this information. Builders in Kerala

    ReplyDelete
  6. Wow Really Very nice post Such a useful information thanks for sharing
    Home For Sale

    ReplyDelete
  7. Thanks for taking the time to discuss that,
    I feel strongly about this and so really like getting to know more on this kind of field.
    Do you mind updating your blog post with additional insight?
    It should be really useful for all of us.
    Best Builders in bhopal
    Plots in Bhopal
    singlex, Duplex houses in bhopal

    ReplyDelete
  8. Hey Nice Blog!!! Thank you for sharing information. Wonderful blog & good post.Its really helpful for me, waiting for a more new post. Keep Blogging!

    Buying Plots in Gorakhpur
    Best Residential plots for sale in Gorakhpur
    Low Price Plots in Gorakhpur

    ReplyDelete
  9. Invest with 200$ and get a returns of 5,000$ within seven business working days.
    Why wasting your precious time online looking for a loan? When there is an opportunity for you to invest with 200$ and get a returns of 5,000$ within seven business working days. Contact us now for more information if interested on how you can earn big with just little amount. This is all about investing into Crude Oil and Gas Business.

    Email: investmoneyoilgas@gmail.com

    ReplyDelete