Cost Parameters You Should Know Before Buying a Property in Noida Extension

2024-01-24

Real Estate Investment

Many people dream of having a home in Delhi NCR. Since there are so many real estate developers in NCR, there are thousands of options for buying a house. But have you ever thought about the total cost of buying a home?

You see an advertisement about a flat that the developer is selling at 3000 / sq. ft.with a total area of ​​1000 sq. ft. You immediately calculate the cost as 3000 * 1000 = 30 lakh.

Wow! 30 lakh is what you were looking for and is very good in your budget. You want to call the developer and book the flat as soon as possible.

But wait, this is not the actual cost of flat. There are many non-advertised costs that are hidden and added over and above the advertised price.

Real estate deal should be done with a trusted person who can tell you the total cost of buying a flat in a transparent manner. For that, you should give priority to a well established and RERA registered Developer and Consultant.

The cost involved when purchasing a property is a major concern for all of us. To overcome the fog about it, we are bringing a small guide for you.

Here are what all the costs a builder / developer will charge you when you actually buy a property.

Watch the Explanatory Video of Cost Components of a Residential Property

https://youtu.be/7CrWDroKvUg

Basic Cost

Basic Cost is the value that is promoted by the developer and is the main value of your property. The Basic Cost in real estate is the base rate per square foot at which the property is listed by the developer. It usually does not include all additional fees such as taxes, preferential place fees and other maintenance dues.

Floor PLC (Preferential Location Charge)

The PLC is an additional charge you have to pay to enjoy a great location within a housing society. The PLC charged on the basis of the floor of the house is known as Floor PLC. If you want a property in that floor preferred by most people then you will have to pay a higher price. Typically, each floor has a different PLC. The PLC amount varies across different projects and Developers.

View PLC (Preferential Location Charge)

The PLC charged on the basis of the View of the house is known as View PLC. For example: those flats provide you a park view, road view, pool view, etc. commands some extra charges. The unit located in the favorable direction can also attract the PLC.

Car Parking Space (CPC)

Have you ever bought a parking lot in India? If you are often buying a flat in a society for the first time, then it may come as a surprise to you. But this is the fact that you will have to pay extra money for parking space.

There are 2 types of parking available in society. One is Open Parking and other is covered. The Prices are different for both. The open parking is cheaper than the covered one.

Infrastructure Development Charges & External Development Charges (IDC/EDC)

These charges are paid on to the state government by the developer for developing the infrastructure for the project and external areas around the project. These charges builder / developer will take form you. The charges vary from state to state.

Lease Rent

All Residential Property in Noida are currently sold on leasehold basis. This means that the Builder is given a township on a lease for 99 years and the authority has to pay a fixed amount as a lease rent. Builder will take this amount from you.

Club Membership

This has become a standard norm these days to form a club inside a society itself for recreational activities. Your society might or might not have this facility however if it has, it doesn’t come free. You need to pay a price for it.

Power Backup Charges

Power failure is also a alien term in developed countries but India wants a good power backup. There are charges for setting up a power back up plant inside your society and keeping your air conditioner running even if there is a power cut from the state electricity board.

IFMS (Interest Free Maintenance Security)

IFMS is the security which is given by the buyers to secure the maintenance and which is transferred to the association on allottees after handover the project.

Meter Charges

Meter charge is simply the amount charged by developers to line up the infrastructure to get electricity into your apartment. To actually get electricity, you have to pay a particular application fee for installing electricity meters and a connection to your state's electricity board.

Monthly Maintenance Charge

In gated communities, residents pay a fixed amount every month that is used for the maintenance of common areas in housing societies. Maintenance fee is the cost of living in an apartment and these maintenance charges are mainly calculated based on the area of ​​the property and the quality of maintenance. You will have to pay advance monthly maintenance for 1-2 Years at the time of buying a flat.

Club Usage Charge

It is a monthly charge of using facilities in the Society’s Clubhouse. It varies society to society.

GST

GST is a government Tax. It is not applicable on ready-to-move-in-property, it is only applicable for under-construction property. GST rate vary from 5% to 6%. For affordable projects, it can be 1%.

Stamp Duty & Registration Cost

These fees are paid to the state government for registration of property in your name. This fee is charged as part of the registered value of the property and varies from state to state.

Legal Fees

This is the amount you pay to the lawyer for all the legal tasks of buying a house. This is not a part of the cost of the flat, but you should consider it also when you decide your budget to buy a house.

Therefore, you should inquire about the above mentioned charges before paying the booking amount to avoid any surprises later.

If you are still confused, you can contact our property expert at +91-7861008808.

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