7 Factors that Determine the Cost of Buying a Property in Gurgaon

7 Factors that Determine the Cost of Buying a House in Gurgaon

If you plan to buy a property at reasonable rates with exclusive amenities, you may consider purchasing a property in Gurgaon. Due to the increase in the number of infrastructures, Gurgaon has become a popular choice for homeowners and investors. The city is considered one of the wealthiest areas of the Delhi NCR region, having old and new buildings and residential complexes with exclusive amenities and services. However, before investing in real estate in Gurgaon, you also need to know about the total cost of buying a property. Years of saving and years of planning cannot be let down the drain when you are making the final decision before purchasing a property.

So in this guide, we will discuss some of the parameters that determine the overall cost of buying an apartment in Gurgaon.

1. GST Tax

Goods and services tax was introduced on the first of July 2017. So whenever a person buys a property in India, they have to pay the GST charges. The homeowner also needs to pay registration charges and stamp duty charges. 

Homebuyers have to pay 12% for buying an under-construction property; on the other hand, no GST is charged for buying apartments in affordable housing projects. Zero GST tax is applicable on the sale of buildings and ready-to-move-in flats where the sale is performed after the completion certificate is issued.

2. Water, drainage, and sewerage charges

While buying an apartment, the home buyer also needs to pay for water facilities. These charges are directly paid to the government and will vary from one state to another. To learn about the charges you may contact residential property dealers in Gurgaon.

3. Preferential location charges (PLC)

If you are planning to buy a property or an apartment in a popular area preferred by most people, they have to pay a higher price for the property.

Like an apartment or a villa on the corner of a road or the first four floors of an apartment building are known as preferred locations. Usually, the PLC charges are 4% of BSP. Therefore the homeowner has to pay an additional 4% more to the total cost if he wants to buy an apartment in a preferred location.

4. Interior charges

Buying a property is just purchasing the outer shell. So before you buy property in Gurgaon, you have to save an amount for the interior decorations of your apartment. This overall cost of interiors will depend on the type and the amount of work which you want. On average, you have to save about 1 to 2% of your entire property cost for your interior design cost.

5. Registration and stamp duty charges

The compulsory fee that a buyer has to pay to the government to get an apartment or property registered under their name is the stamp duty. The stamp duty charges can vary from 5 to 7%, depending on your state. The property will not be registered under your name unless you pay the stamp duty.

The registration charge is the cost of the entire and final legal agreement between the builder or seller and the buyer. Registration indicates the change of ownership, and the charges are about 1 to 2% of the agreement value.

6. Maintenance charges

Nowadays, many builders ask the homeowners to pay about 5-10 years of maintenance charges in advance. The maintenance charge will depend on the land value, locality, and the type of home you have purchased. It also varies depending upon the quantity, quality, and kind of amenities that the residential complex or property is offering.

7. Car parking space cost (CPC)

Parking space is an essential element as nowadays, most homeowners own a vehicle. The overall value of your home also increases when you own a closed parking space.

Depending on the type of property, location, and other factors, the construction company or the developers will charge you between INR 1 lakh to INR 5 lacs for a closed parking space. Additionally, if you need more parking space for another car, you must pay additional money. 

Final Verdict

Owning residential property in Gurgaon is something you should be proud of. For most homeowners in India, buying an apartment is a huge milestone. However, it comes with various risk factors, concealed costs and terms, and conditions. Therefore it is essential that you know the entire process and the multiple factors that determine the cost of buying a property.

For assistance regarding purchasing properties in Gurgaon, you may contact YHATAW Real Estate. The experts on board will help you determine the various costs associated with a particular property.

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