ELEMENTS TO DETERMINE COST OF THE
HOUSE
a. Readymade Properties
Agreement
value for buying the property.
Value of amenities
provided along with the flat and payment made separately under an amenities
agreement. In most cases, the amenities agreement is an attempt to segregate
the cost of the amenities to avoid paying the high stamp duty on real estate in
India. Most banks restrict the value of the amenities to around 20 per cent of
the total agreement value of the flat. However, if the amenities agreement is
also stamped and registered most banks will consider 100 per cent of such
costs.
Stamp
duty and registration charges to be paid on the agreement. Initial capital
expenses, such as civil work, are to be met with.
Some
banks will also include transfer charges payable to a cooperative society,
deposits required by electricity companies, and separate payments for club houses.
Banks would
also consider any cost
incurred towards purchase
of a parking space.
Cost of furnishing: In case of specific tie - up
with a builder, a bank may include the cost
of ready
furnishings provided along
with the flat. Typically bank will not provide loan
for some
of the elements of cost such as stamp duty or registration cost. But some banks
consider cost such as stamp duty or registration cost include in cost of property.
b. Self - Constructed Properties
Cost of
the land, taken as the cost to customer or current market value, whichever is
lower. Some bank will not take the cost of the land into account if customers
have brought it more than a year ago. Cost of construction as estimated by
customer's architect and vetted by the bank, fees paid for obtaining legal and
statutory approvals, stamp duty and registration charges payable on agreement.
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