Buying a home is probably one of the biggest purchases one will make in his or her life. However, when closing a deal on a residential apartment in Lucknow, you need to know that over and above the price tag on the property there are a host of other taxes, fees and charges that you may have to take into account. Here are a few costs that you may want to account for when setting aside a budget –
• Cost of Registration and Stamp Duty
The registration is essentially the final agreement that is signed between the buyer and the selling highlighting the change of ownerships as well as the responsibilities of the buyer. To be able to get your property registered, you will have to pay a charge to the government and also pay a stamp duty. This is essentially a tax that is levied on every property transaction.
This process can be quite expensive and essentially depends on the total value of the property and may vary anywhere between 5 to 14.7% of the property cost. You also may be required to pay a registration fee to the court, fees to the notary and lawyers who process this for you.
• VAT and Service Tax
If you purchase any property that is still under construction, you will be charge a VAT and a service tax. While VAT is charged based on the construction value of the project, you will be levied a service tax of 12.36% of the 25% of the value of the property under construction.
• Preferential Location Charge
This is an additional charge that you pay to book residential apartments in Lucknow that have a better location within a specific society or complex. This charge may differ from one builder to another, but the more premium the project the higher will be the charge.
• Utility Charges
This includes various costs associated with the building you are living in. This could be anything from parking charges, electrification, maintenance, fire fighting and other such expenses associate with utilities that are offered by the local or state government.
In addition to this, you also want to account for external development charges which are essentially applied per square feet and goes into the upkeep and development of the area around your building. Also account for advanced club house charges and maintenance charges which are most commonly levied in lifestyle buildings.