For those preparing to shop for a house, here goes the list of extras:
Stamp duty and registration:
In Mumbai, stamp duty comes to five per cent of the cost of the house and the registration is one per cent of the same, or, `30,000, whichever is lower. These costs cannot be avoided as, in the absence of registration, a third party can come and dispute the property's ownership.
The good part is that banks consider this as a part of the loan. So, the 80 per cent loan to-value will include these costs.
Buyer's cost: Five per cent of the property's cost + one per cent= `169,800
Car parking: While purchasing a first-hand property, many builders sell it separately and seek cash payment. Even for a second-hand property, one may have to pay separately.
Buyer's cost: `1.5 lakh
Brokerage: This could either be a flat fee or a percentage of the property's cost (mostly, between one and two per cent). Also, this would vary across brokers. Of course, brokerage is applicable only in case of a second-hand house.
Buyer's cost: Two per cent of the property's cost, or, `56,600
Name transfer: You need to notify your local municipal body and state-run electricity board regarding the ownership of the house. This would cost `5,00010,000, depending on the area.
In Navi Mumbai, state-run City and Industrial Development Corporation charges a total of `10,000,.
Buyer's cost: `2,000-4,000 (municipal corporation)+ `1,5002,000 (Maharashtra State Electricity Board)
Society transfer: This is applicable only in case of a second-hand house. Here, you need to change the ownership of the house by showing the purchase papers to the housing society. For this, you need ano-objection certificate from the society, after which the house is put in the buyer's name in their records.
Experts say the law does not allow a society to charge more than `25,000 a person.
But, societies have their own by-laws, under which they charge anywhere between 0.5 to 1.5 per cent of the property's cost, also.
Buyer's cost: `50,000 (shared by the buyer and seller)= `25,000
Society charges: There are certain costs you will have to incur for the maintenance of the society or locality. It could either be lump sum for a few years or annual or monthly.
