What kind of expenses are foreseen in purchase of a property in India?

#1 Oct 22nd, 2004, 06:49
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  • eater is offline
#1
A friend purchased a condo 3 years ago, suggested to consider the following costs / items:

Agent's finder fee 1% to 2%
Transfer fee 12% (10% Registration and 2% Duty)
Condo fees (maybe a one time cost, a % of the price)
lawyer fees
Property Tax.
may have to pay a % of the purchase price in cash.......
Just happy to be here.........
#2 Oct 22nd, 2004, 21:14
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  • Kingfisher is offline
#2
I haven't looked into this, but I would think the 'Condo fees' would be an ongoing annual or monthly fee to cover maintenance and taxes and not a 'one time' cost.
#3 Nov 6th, 2004, 13:34
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  • deutchesafrikar12 is offline
#3
Stamp duty varies from state to state.
With some builders you need to pay a one time cost, the interest of which is used to maintain the place. So in this kind of situation the monthly or anual outgoings are done away with. registration fee is only on new apts. Property tax is an annual fee paid to the municipality for the drain/sweage and water services provided.
#4 Nov 8th, 2004, 04:29
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#4

Thumbs up

Quote:
Originally Posted by deutchesafrikar12 Stamp duty varies from state to state.
With some builders you need to pay a one time cost, the interest of which is used to maintain the place.
So in this kind of situation the monthly or anual outgoings are done away with.
Registration fee is only on new apts.
Property tax is an annual fee paid to the municipality for the drain/sweage and water services provided.
Thank you, deutchesafrikar12

This is helpful, .....hopefully, I will find something suitable to go ahead with the flat purchase in Mumbai!
#5 Nov 23rd, 2004, 19:07
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  • Amit is offline
#5
hi.. you seem to have all the costs listed, but here they are again, and i am assuming you are buying a flat, and not land!

1) cost of property
2) Stamp duty, currently 5% in mumbai
3) Registration max INR 20,000
4) Brokerage - 2% (do negotiate, if its high value, also if u are buying a new flat from a developer, then usually developer pays and u dont)
5) Parking slots may be priced

Also, the developer may charge some maintenance for a specific period covering property taxes, etc. However, later u ll have to make monthly payments for the same. If there is a pool, gym, etc then ask what the monthly outgoing will be!

If you are buying a flat where a co-operative housing society has been formed then check for society outgoings. In case of a second sale, usually the case where there is a society, transfer charge will be payable. THe law restricts it to INR 25,000, however, ppl seem to ask for what ever they want.

There is no transfer charge for new property from developers, also no legal charges cos they ll give u a draft to read and sign which u might at best get vetted by a lawyer and that is not expensive!!

Need more info, just ask!

CHeers

AMit

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