Are you going to invest in property? Have you comprehended what’s its buying process? Do you have any idea which unwanted problems can trouble you? Here, I am talking about the hidden cost. It can slap you at the time of inking the deal. ‘Quitting’ that situation can be next to impossible. Here below is the roundup of the possible hit of hidden cost. Brainstorm them thoroughly. The enclosed NRI property solutions are the tips straight from the horse mouth. These can help you out.
Charges for registration & post registration: Inking the deal is finalized with registration. For sure you have to lose your pocket as it’s not at all dirt cheap.
- Making sum of saleable value, stamp duty and registration fee gives out total cost of the property. Delhi, Mumbai, Kolkata, Punjab and Haryana states charge 5%, 4%, 5%, 6% and 3% as stamp duty. Alongside, registration fee for the similar states is fixed around 1% or 1.5%. Having this knowledge handy can let you shoot off the seller’s mouth. Underestimating them can account you to bear hefty loss.
- Legal fee for registration process is also debited from your account.
- Property tax and procuring Khata will be additional cost for you to bear.
Taxes and other parking costing: Real estate companies or property brokers play trick. They stay mum over taxes and parking cost at the time of making the deal. Once it is done, an NRI gets its detail in the price list. Instead of jumping down their throat, he/she can:
- Factor all costs under the total cost of the property.
- Outgoing price should be listed in the total cost for avoiding later-day hassles.
Escalation Charges and Penalties: Buying an under construction apartment or house can force him paying through the nose. Such a huge amount will not be charged directly. Escalation clause may not be in your knowledge. It drains you away of the situation when the seller asks him to pay ‘escalation charges’. Appreciation in the price of cement, brick, steel or any other building material can be alleged for such charges.
- Read out Sale Deed thoroughly.
- Check out the ‘escalation clause’ to get rid of the situation that compels to pay unwilling charges.
- If home loan is taken, go through the penalty charges clause. Sometimes, you may have to pay penalty for exceeding the deadline of loan installment. Interest can be surcharged in such situation.
- He has to consider if there will be any deductibles while getting a refund of the home loan.
- In case of cancelling the home booking, check out whether the builder will refund instantly or he has to wait until it is sold.
No Objection Certificate Charges: A little knowledge can trap you in expenses. This is why you have to learn about NOC (Non Objection Certificate). It is legal practice that NOC is to be handed over to the buyer by the builder or seller. What this certificate states is that:
- The seller has no objection in handing over the keys of the house to the new occupant.
- All kinds of payments and fees are paid in full.
- It can be chargeable sometimes.
Maintenance Charges: Maintenance charges are reserved for revamping the building.
- Most often, theassociation bears the charges of maintenance in the first year. So, they keep it lesser.
- Check out the same in the succeeding year whether it is kept same or has been appreciated.
Staying tuned with all these significant facts and information can save you from unwanted hassles. NRI property services can help you to stay alive with the fact.