Hidden costs buyers forget in new launch projects

The actual price of a flat goes above what is printed on the brochure. Many homebuyers focus on the basic cost, and they proceed to buy and are unaware of hidden charges that show up later.  For unprepared buyers, the “hidden costs” can come as a shocking surprise of up to an extra 10% to your total budget.

So, here is a guide on which Hidden costs buyers forget in new launch projects and take a look at it before buying properties,

• GST Charges

If you are buying an under-construction flat that is newly launched, a GST charge will be added. If the flat is ready to move, there will not be any GST.

In Hyderabad, GST on under-construction residential properties is

•  1% for affordable housing (units < ₹45 lakhs)

•   5% for non-affordable housing.

• Stamp Duty Charges and Registration Fees

These costs will not be added to the base price. These charges vary from state to state in India. The charges in Hyderabad are as follows,

•                 Stamp Duty Charges: Usually, 4% of the property’s value

•                 Registration Fee: 0.5% of the property value

•                 Transfer Duty: 1.5% of the property value

The 6% of the value is an extra cost that will be added along with the base price of a flat.

• Home Loan Processing Charges

If you are taking a home loan from any bank, the bank will charge a small processing fee, which is 0.5% to 1% of your total loan amount.  It will cost from ₹4,000 to ₹10,000.

• Interiors

The base flat will not have any interior. Basic interiors like wardrobes, shelves, and a modular kitchen can be added. The cost varies with the design and style that the buyer asks for.

• Parking Charges

Buyers have to buy parking slots if they wish, and the price will differ based on open or closed parking lots. The cost of covered parking ranges from ₹2 lakhs per slot. The Open parking slot ranges from ₹1 lakh per slot.

• Clubhouse Fees

There will be a One-time clubhouse membership fee to use indoor amenities, such as a gym, spa, library, dance rooms and much more. It will cost ₹1 lakh.

• Advance Maintenance Charges

Builders usually ask for 1 year of maintenance fees in advance when booking a flat. It varies with each flat and will roughly cost from ₹50,000 to ₹90,000 per year.

• Legal Costs

Before you buy, it is best to check with a lawyer whether the land has safe legal titles. The Average lawyer fees range from ₹15,000.

• Sinking Fund

This is a one-time payment that has to be paid when booking to cover any long-term repairs in the building. This charge will range from ₹50,000 to ₹1 lakh.

• Other Expenses

There are also other charges that include floor rise charges that vary with the floor which the buyer selects. There will be modification charges if buyers ask for extra plugs or any shelves inside their home. There will be generator backup charges. There will be extra charges if the buyer books their flat facing the pool or gardens. Together, these can add another ₹1 to 2 lakhs to your final bill.

How Much Extra Charges Should You Budget?

Let’s break the cost down for a ₹1 crore flat:

This ₹28 Lakhs has to be added along with the base price of ₹1 Crore, and the total price will be ₹1.28 Crore. Buyers have to plan these extra charges when buying their flat.

Buying a home at Prestige Golden Grove in Tellapur, Hyderabad, is a stress-free process as there are no hidden charges. All the complete charges are mentioned in the cost sheet of the project, and there will not be any surprises later.