Property is the biggest asset a person has in their name. Given the rate at which property rates surge over time, real estate offers a flourishing platform to investors. However, buying a property is not as elementary as it sounds. The prospect of buying a property anywhere is appendaged with the liability of paying several hidden charges. And for people contemplating real estate investments in Haryana, the charges have the potential to add up to form a humongous sum.
Real Estate in Haryana: A Booming Marketplace
It would not be wrong to quote that currently, Haryana is a hotspot for property investment. Gurgaon is one of the most expensive property markets in the country, with an average property rate of Rs. 5000 per sq. ft. Its proximity to the state capital and the rate at which it is developing by the day in industrial, commercial, and financial arenas can be attributed to the rapid rise in its property rates.
Along with paying the property rates, the buyers are entitled to bear several other expenses to transfer the asset legally in their name.
According to The Registration Act, 1908, a buyer should pay the Gurgaon stamp duty and registration charges to register a property in their name.
Here are the lists of several hidden charges which increase the overall cost of property purchase.
1. Stamp Duty in Haryana
The charges of the stamp duty in Haryana depend on the gender of the buyer and the location of the property. The charges are higher for male buyers and the areas within the municipal limits. For men, the stamp duty charge for a property within municipal limits is 7%, while for women, it is 5%. For the areas outside the municipal ambit, the property charge for men is 5%, while that for women is 3%.
The joint property stamp duty rates for areas outside and inside the municipal ambit are 6% and 4%, respectively.
It is to be noted that the government doesn’t seem to be cutting down the stamp duty charges despite the pressure from the industry.
2. Registration Charges in Haryana
Under the Registration Act, a buyer is bound to register their transaction within four months of making the big purchase. While most Indian states charge 1% of the property value as the registration charge from the buyers, in Haryana, the buyer has to pay a flat fee, depending on the worth of the property.
Earlier, Haryana charged up to Rs. 15,000 as the registration charge. The government increased it to 50,000 based on its collector rate in 2018.
Furthermore, this charge is applicable on mortgage deeds, sale deeds, gift deeds, lease deeds, sale certificates, collaboration agreements, partition deeds, settlement deeds, and exchange deeds.
3. EDC and IDC Charges
Apart from stamp duty and registration charges, other hidden charges include EDC and IDC charges.
EDC stands for External Development Charges and IDC stands for Internal Development Charges. Both EDC and IDC are collected from the manufacturer or buyer by the State Government for the development of local infrastructure. The buyer is required to pay these charges based on per square foot.
4. IFMS
IFMS stands for Interest-Free Maintenance Service Charges. As the name says, the builder demands these charges for the maintenance of the project. It is a compulsory and non-refundable charge. The buyer is bound to pay IFMS (Rs.25 to 50 per square foot) until Residence Welfare Association comes into being. They have to pay these charges as a one-time payment.
5. PLC
More often than not, buyers are always inclined towards buying a property with certain specifications entailing location. For instance, a pool facing, east facing, corner apartment, garden facing, etc.
PLC or Preferred Location Chagres are extra charges applied on the property bought at the preferred location of the buyer. The charges are applied at the discretion of the builder, and hence, vary as per the project. They are charged on super area per square per foot.
6. Parking Charges
Another hidden charge, a buyer is bound to pay to the builder is the parking charge. It is the additional amount of Rs. 1 lac to Rs. 4.5 lac.
7. GST (Goods and Services Tax)
The government of India applies these charges on under-construction projects. It is charged 5% on under-construction projects and 1% on affordable housing.
8. Power Backup Charges and Club Charges
Hidden charges that most buyers are not aware of are power backup charges and club amenity charges. The buyer has to pay a lump-sum amount with the final payment. Power backup charges could be anywhere from Rs. 1 Lac to Rs. 1.5 Lac, whereas club charges could be anywhere between Rs. 2 Lac and Rs. 2.5 Lac.
In recent years, Gurgaon is growing by leaps and bounds. With many employment opportunities, the millennium city of India is magnetizing the classes and the masses. Hence, buying a property in Haryana is no cakewalk. That’s where YHATAW – a real estate consultancy firm in Gurgaon steps in.
We offer an insight into the current scenario of the real estate market and tell you about all the hidden charges levied on you while buying your dream home. With YHATAW, you can never go wrong with your real estate investments.