Final Home Price Decoded for Home Buyers, Get your Calculations Right.

 

We all dream of purchasing a house in the early stages of our lives, but as we move through the path of buying one, it seems like a labyrinth to find a home to meet all the legal formalities relevant to it.


Being a person who is not familiar with real estate terms, it becomes difficult to grasp how the home-purchase process is going on and what should and should not be included.


When we look for a house, our main concern when buying it is always the price, we have to pay for it. But what amazes us is the deviation of the price that we see while searching for it versus the amount we need to pay for it.


So, to help all prospective home buyers understand how to determine the literal price of the house, HomeCapital offered a detailed description in the Final Home Price Decoded for Home Buyers.


There are a lot of factors that are taken into account to get the actual calculation done.


  • Firstly, the Agreement value: The agreement value of the deal is the primary value of the building. It consists of the basic expense to be billed by the developer.


  • Moving forward, the other preeminent factor that affects the calculation are Taxes on home buying, there are a lot of statutory fees that have to be paid to the government are included in the calculation, such as:

- Stamp Duty: It is a one-time amount charged by the state government for handling the selling bill. Stamp duty charges can vary from state to state. They vary from somewhere between 2% – 7% of the valuation of the estate. Stamp duty often differs on the basis of ethnicity. In order to encourage female property ownership, some of Delhi is giving women buyers a 2% discount.

- Registration Charges: A majority of states levy 1-2 percent of the contract value or 30,000 (whatever is lower) as a registration fee to register the house with the government. Haryana, on the other hand, charges a fixed sum irrespective of the value of the land. Registration cost for the land taken into account is 30,000.

- Goods and Service Tax (GST): GST just needs to be paid for under-construction land. Since its introduction in 2017, all other taxes, such as income tax, VAT, etc., have been superseded by GST. The same has been substantially decreased late on the basis of the home price. A house below 45 lakes attracts 1 percent of GST, and something over that attracts 5 percent of the home price. The GST is due on every installment.


  • Lastly, the factor incorporated for calculation is Miscellaneous Charges, fees, and costs such as:- Building Maintenance charges: Advancement of services provided as common-area lighting, parks and recreation areas upkeep, etc. obtained on a periodic basis that is taxable under the GST. When a social welfare group is established, it is their duty to take care of the preservation of society.


- Sinking fund and Campus corpus fund: The Sinking Fund is the funds put up by the insurer for future insurance for heavy-duty maintenance, structural improvisation, etc. in the future. The Campus Corpus Fund is set aside for the construction of common leisure facilities. Usually, both are one-time payments.

- Charges/fees by external entities: Legal fee for the home agreement, sale deed registration is an additional charge. Any extra expense, such as paper handling charges and the Memorandum of Deposit of Title Deed (MODT) charges, should also be arranged.

- Interior Costs: When one buys a home, it typically lacks basics such as woodwork, painting, furniture, etc. that make the house inhabitable. Such spending must be prepared in advance since it does not have a cap.

- Infrastructure development charges: To make your house habitable, you need basic utilities such as water, sanitation. Developers would also cater for sewage treatment systems, water treatment plants, firefighting equipment, and other services. Many of these conditions are met by infrastructure development costs. The homebuyer would also have to pay for their power access to the electricity board.

Hence, by taking all of the aforementioned expenses into account, we get our real home price. So, from the next time you look for a property and its worth, make sure you calculate it and know its actual cost.

 

Comments

Post a Comment

Popular posts from this blog

Homecapital Community - Community for Homebuyers

Image
  Whenever we think of buying a house, we enter a world full of labyrinths, numerous items start to run through our heads. Starting from where I can look for a house, how do I look for it, and if I find one, what do I look for, and a lot more.. There are unlimited numbers of factors that must be sought, checked, and organized in order to purchase a home. However, things don’t get sorted here, as we proceed further, we get exposed to certain discrepancies, such as the overpricing of a home, deceptive and inappropriate representation of the property, complicated legal procedures, massive miscellaneous expenses, and much more. And, because of all these terminologies, we are forced to recognize and continue to make decisions over the wrong behaviours involved in it, both in terms of costs and appetite. Therefore, HomeCapital has come up with an innovative measure called HomeCapital Community to convey a clear understanding on all the subjects engaged in the house buying process to save H
Read more

Mahaveer Trident - Build For Contentment

Image
  When we have to choose a location for buying a house, it’s apparent to visualize cities like Mumbai, Delhi, Hyderabad, and other similar places, as these cities are expected to provide all the necessities and desires of life.    But the truth cannot be ignored that nothing can give you everything!   While these cities are intended to offer the best of life, they lack sustainability when it comes to price, and while they provide a fascinating city life, they struggle to provide greenery and tranquillity.   Nevertheless, I am very pleased to apprise that India still has a lot of cities where we don’t have to settle for less and negotiate in any term.   One such city is Bangalore!   The city, Bangalore has thrived in all aspects. It already has giant IT parks and also preparing to adopt more such IT and business parks. Also, the city has big shopping malls, hospitals, colleges, universities, and all other amenities one would want. If we talk about convenience, it offers good connectivit
Read more

Pashmina Waterfront - Reflects Happiness

Image
  When it comes to buying our dream house, all of us desire something special from it, and one of such desires for most people is to reside in a property situated beside the water. To fulfill such yearning, Pashmina developers have come up with an amazing project called Pashmina Waterfront located at K.R. Puram, Bengaluru.   However, purchasing a home is a significant investment for everyone, and it is important to understand all aspects of the project. So, let's begin by learning more about the estate.   3 BHK Pashmina Waterfront is a residential project by Pashmina Developers in KR Puram, East Bangalore. Apartments with a great mix of modern architecture and amenities are available as part of the scheme, ensuring a spacious living environment. The project covers approximately 16.59 acres of land, with 41% of it being open space. It is made up of two towers, each with 38 floors. There are 1820 units at Pashmina Waterfront.   A squash court, table tennis, salon, steam and sauna, p
Read more