Registration, GST, maintenance, corpus fund explained

When booking an apartment in a high-rise gated community, there are certain charges to be paid apart from the base price. Buyers have to get a clear idea of the complete price range of their flat before booking.

The charges for Registration, GST, maintenance, and corpus fund explained have to be understood so that buyers can prepare their budget easily before buying their houses.

Registration Charges

Registration charges are the fees that are collected to officially record the property transaction in the government records. It varies with each state. The total registration charges in Hyderabad are 6% of the property value. The property registration charges will apply to a range of property types, which include new flats, plots, villas, and resale properties. The rates will be the same. The calculation based on the market or guideline value will make a difference.

The guideline value is the minimum rate that is fixed by the government to register a property. It influences the registration charges.

Factors that influence the guideline value are:

• Type of property – flat, plot, or resale
• Location
• Road width
• Zoning - residential, or commercial

GST charges

GST applies to under-construction properties and to properties that are awaiting a completion certificate. GST can be grouped into the following categories: 

• Non-affordable housing: Houses that do not meet the norms of affordable housing. 
• Affordable housing: A house with a carpet area of 60 sq. meters in cities and up to 90 sq. meters in non-metropolitan cities that is worth Rs. 45 lakhs.

In Hyderabad, the GST charges are

• Standard flats: 5% GST
• Affordable housing: 1% GST

The maintenance fee that has to be paid every month also involves GST.

Maintenance charges

Maintenance charges are the charges that have to be paid by every buyer to keep the common areas of the property clean. At the initial stage, these charges have to be paid for 1 year when booking a flat. Then, after possession, these charges can be paid every month. The amount that has to be paid will be decided by the association.

Maintenance charges are calculated based on the size of the flat (per square foot) or a fixed rate that is set by the society.

• Per Square Foot Method - Many societies calculate the charges based on the total size of the flat.
• Flat Rate - Some buildings use a flat rate, where each owner will pay the same amount.

Corpus Fund

A corpus fund is a reserve of funds that can be used for many purposes. It means that part of the full amount may be used by the homeowners as and when needed. It could be needed for regular work such as fixing leaks, repairing lifts, etc. It will help to keep the entire community clean. The corpus fund is collected as part of the final payment during the ownership of your apartment. It has to be paid based on the size of your flat.

Prestige Golden Grove in Hyderabad comes with a reasonable price range, and as the project is in an early stage, there are many discounts up to 20%. Booking at an early stage will help buyers save the amount for registration and other charges. The Maintenance Charges that have to be paid initially are ₹75 per sq. ft. per year, at the time of booking.  After possession, the monthly maintenance is ₹5 to ₹6 per sq. ft, which is lower than other housing projects in Hyderabad.

Conclusion

Getting an idea of the extra charges that have to be paid when booking a flat will help buyers to avoid surprise charges. They can plan their budget easily and can be free from financial burdens when booking a flat in a gated community.