Everything You Need To Know About Property Costs While Buying A Property


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If you are planning to buy a property, you will encounter different costs, depending on whether you purchase it in a primary market or the secondary market. Property costs involved are quite different in both cases. Following is an explanation of the different charges involved in buying a property in either of these markets.

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Everything You Need To Know About Property Costs While Buying A Property

  1. 1. Everything You Need To Know About Property costs While Buying A Property
  2. 2. While you buy a property, you will encounter costs depending on whether you purchase it in a Primary Market or A Secondary Market
  3. 3. Lets learn how Property costs are different in both Primary & Secondary Markets
  4. 4. What is Primary market ???
  5. 5. When a buyer directly buys property from a builder it is referred to as Primary Market. The property may be either under- construction or Ready-to-Occupy.
  6. 6. What are the important costs ???
  7. 7. The loan processing fee & documentation charges are the first costs that you will encounter if you are buying a property on bank loan 1 Loan Processing Fees
  8. 8. These are imposed by the Central government, primarily for developing and maintaining the infrastructure around the project. 2 Infrastructure charges
  9. 9. The PLC depends on the size, rate and alignment of the flat. It is calculated per sq. ft., where the area includes common spaces, car parks, parks and lobbies. 3 Preferential location charges
  10. 10. These are charges associated with the building which include electrification, development charges, parking fees, annual maintenance, firefighting and other charges such as club-membership. 4 Utility charges
  11. 11. These are charged by the government and are included within the project cost. The government charges a specific service tax and VAT depending on the city. 5 Service Tax and VAT
  12. 12. These are charges that vary from state to state which have to be paid separately in the sub- registrar’s office while purchasing a property. 6 Stamp duty & Registration fees
  13. 13. What is Secondary market ???
  14. 14. A property which is on resale and you are buying a property from an owner instead of a builder is a secondary market. As the property is already ready to move in, you do not encounter the costs seen in the primary market.
  15. 15. Learn More About Property Buying here
  16. 16. What are the important costs ???
  17. 17. These charges are applicable if you plan to buy a property through a broker. 1 Brokerage
  18. 18. Depending on the property, you will have other charges such as property & water taxes , electricity bills that may not be settled by the previous owner. 2 Other Charges
  19. 19. Have Questions Related to Property Buying ? Get them answered by experts here
  20. 20. CommonFloor.com is India's leading property search portal. On a mission to make property search hassle-free, transparent and fruitful; CF has best of breed property search on maps, property search mobile apps and an extensive section for knowledge resources and advice in real estate.