Buying plot in Delhi or Delhi NCR is a considerable investment, however, many buyers do not consider the hidden charges that one may incur during property transactions. In addition to the price of the land, there are also stamp costs, registration fees, legal charges, property tax, brokerage charges, maintenance deposit, and other related fees (unless purchased indentured). If you are not aware of these various costs then budgeting to afford purchasing a plot may become difficult. What we have prepared is a complete guide along with FAQ’s to not only help you understand the costs of a plot, and property tax legislation, but also the costs associated with an ownership of property.
Are there hidden costs in plot purchase in Delhi NCR?
Yes, beyond the plot price, buyers will also have hidden costs. These include stamp duty, registration charges, legal verification charges, brokerage, development charges. For gated communities, there may be maintenance deposits or security deposits. Considering these costs involved in property transactions in Delhi NCR means you will have an understanding of your actual budget before you purchase.
How to identify hidden costs in Delhi NCR plot buying?
When searching for hidden costs, read all legal property document and search MCD or local municipal taxes and confirm any extra charges with the seller or developer. These hidden costs may include stamp duty, registration fee, brokerage (1-2%), GST on under construction plots, parking fees, maintenance deposit, and interior finishing charges. Remember to always ask for a cost sheet before entering into the agreement.
What are the hidden costs of buying property in India?
Making a property purchase in India also comes with additional costs which are usually unaddressed, besides the sale price. These include stamp duty (4-8%) and registration fees (1-2%); goods and services tax (GST) for homes that are ready to be occupied is 5% and for affordable housing, it is 1%; legal verification and advocate’s fee; and finally, brokerage fees (which can vary between 1-2%). Homebuyers need to consider maintenance deposits, parking charges, utility connection fees, property tax, the processing fee for the home loan, and other charges imposed by developers like Preferential Location Charges (PLC) or development costs.
What is the biggest cost after buying a house?
The next highest ongoing cost of owning a home, after the purchase price, is the home loan EMI, which can be equal to or more than the principal. Other ongoing costs include property taxes, which come from MCD or municipal bodies annually for Municipal taxes in Delhi NCR, home maintenance and repairs (roughly 1-2% of property value annually), utilities such as water, electricity and gas, and home insurance to safeguard you from financial loss. Even in gated communities, various other expenses, including society/HOA charges, landscaping, and upkeep of common areas, are included in terms of ongoing costs of ownership.