Factors that can Increase the Cost of Flat

lemont By lemont, 26th Jan 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/113ri8ez/
Posted in Wikinut>Money>Property

First time home buyers generally overlooks the points which otherwise increases the final cost of property before possession. Here we have tried to cover those points which will help those who are new to properties.

Escalation Clause

The material cost is almost 50-60% the cost of flats. Any rise in cost of construction will impact the project cost and therefore delays in construction of the property. The higher inflation, fuel cost makes the cost of material costlier. Therefore the builders puts the Escalation clause in the application form.
At the time of possession the company charges the additional cost that increased during the construction.

Taxes

Taxes are the obligation that are to paid by the buyer of he property, and which are not avoidable.
Two types of taxes are levied over property:
a) Service tax which is charged at the rate of 3.09% on basic selling price of the property, and 12.36% on power backup and Running cost.
b) Registery charges may vary from 5-7%
These cost have no substitute.

Furnishing cost

Buyer must enquire that weather the property would be furnished, semi-furnished or unfurnished. Because the cost of work may include wooden work, wardrobes, Modular Kitchen, light fittings, fall ceiling. These work may cost near about 7-12 % of the cost of flat.

Delay in possession

Any delay in handing over of the flat will ultimately increases the cost by the amount of rent which the owner of the property have to pay for extended delayed possession.

These points are very important because the further increase in the cost of flat would badly impact the buyers.

For other important points one should look for before finalising your dream home you must read "http://www.wikinut.com/checklist-for-home-buyers/1v7h3pkc/vnt8--pp/"

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