Understanding Charges in High-Rise Gated Community Flat Purchases
High-Rise Gated Communities in Hyderabad
Over the past decade, Hyderabad has witnessed a remarkable transformation in its real estate landscape. One of the most prominent trends is the proliferation of high-rise gated communities. These modern residential complexes offer not only luxury and security but also a vibrant lifestyle. From picturesque views to state-of-the-art amenities, these gated communities have become the preferred choice for homebuyers in Hyderabad.
However, buying a flat in a high-rise gated community involves more than just the base price per square foot. There are several additional charges that many potential buyers may not be fully aware of. In this blog, we will unravel these hidden costs, providing you with a detailed understanding of each charge and what it covers.
Understanding the Additional Charges
When purchasing a flat in a high-rise gated community, it’s essential to factor in various charges that go beyond the basic price per square foot. These charges, although they may seem secondary, play a crucial role in the overall cost of your property. Let’s dive into each of these charges and explore what they entail.
Base Price:
The base price is a fundamental component of the total cost of your flat in a high-rise gated community. It is essentially the cost per square foot of the super built-up area of your flat. The base price is calculated by multiplying the super built-up area of your flat by the cost per square foot, as specified by the builder or developer.
Floor Rise Charges & Corner View Charges:
Floor rise charges are applicable when your chosen flat is located on a higher floor, typically starting from the 5th floor or higher. This charge is calculated based on the additional height and view advantages offered by higher floors. Also, there will additional charge for the corner flats. These can significantly impact your total investment. Typically, average floor rise charges will be around Rs. 20/- to Rs. 30/- per sq ft, and Corner view or Garden view charges will be around Rs 100/- per sq ft.
Facing Charges:
Facing charges come into play when you opt for specific orientations, such as east-facing flats. This choice might offer better natural light or views, and the charge is incurred for this preference. Typically, East facing charges will be at Rs. 100/- per Sq.ft
Car Parking Charges:
Parking is a crucial aspect of urban living. High-rise gated communities often provide dedicated parking spaces. The first parking space is typically included in the base price of amenities, while any additional parking spaces come at an extra cost of around of Rs. 2,50,000 to Rs. 3,50,000
Amenities Charges:
The amenities charge covers access to the community’s shared facilities, including the clubhouse, electricity, drainage, lifts, water supply and sewage treatment plants, and backup power supply through a DG set. It ensures a comfortable and well-equipped living environment. On average, amenities charges will be around Rs. 6,00,000 to Rs. 7,00,000
Infrastructure Cost:
Infrastructure costs encompass various essential services and systems, including Building Management Systems (BMS), Landscape Management Systems (LMS), Radio-Frequency Identification (RFID) access control, and the provision of piped gas connections for your convenience. On average, Infrastructure changes will be Rs. 2,50,000
Legal and Documentation Charges:
Legal and documentation charges cover the administrative costs associated with the property transaction, including the preparation of legal documents and contracts. It costs around Rs. 20,000 + 18% GST
Advance Maintenance for 2 Years:
Maintenance charges are essential for the upkeep of common areas and facilities within the gated community. They cover services such as security, landscaping, cleaning, and overall maintenance. On average the advance maintenance cost will be charged at Rs. 72/- per Sq.ft + GST @ 18%
Corpus Fund:
The corpus fund is a reserve fund created to cover any future repairs or capital expenses within the community. It ensures the long-term sustainability and maintenance of the property. On average Corpus fund will be charged at Rs. 72/- per Sq.ft.
GST Rates
GST rates for flats can vary depending on several factors, including the stage of construction and the type of property. As of my last knowledge update in September 2021, the following GST rates were applicable:
Under Construction Properties: For under-construction flats, GST is typically levied at 5% of the property value (excluding the cost of land and other charges). This rate applies to affordable housing projects as well.
Completed Properties: If you’re purchasing a ready-to-move-in flat where the occupation certificate has been issued, GST is not applicable.
Registration Charges (Stamp Duty):
Registration stamp duty is a government tax that is applicable during property registration. It is calculated as a percentage of the total property value, excluding maintenance charges, the corpus fund, and legal and documentation charges. It is 7.6% of the total amount excluding maintenance charges, Corpus Fund, and Legal and Documentation Charges
Example Scenarios
Let’s illustrate these charges with two example scenarios:
Scenario 1: A 2BHK Flat on the 7th Floor with 1350 Sq.ft Super built-up area
Base Price: 1350 sq ft * Rs. 7500 = Rs. 10,125,000
Floor Rise Charges (3 floors above 4th floor): 3 * 1350 sq ft * Rs. 50 = Rs. 202,500
Facing Charges (East Facing): 1350 sq ft * Rs. 50 = Rs. 67,500
Amenities Charges: Rs. 3,00,000
Infrastructure Cost: Rs. 2,50,000
Maintenance for 2 years: 1350 sq ft * Rs. 72 = Rs. 97,200
Corpus Fund: 1350 sq ft * Rs. 50 = Rs. 67,500
Legal and Documentation Charges: Rs. 20,000
GST on Legal and Documentation Charges: 18% of Rs. 20,000 = Rs. 3,600
GST on Total Amount (Base Price + Floor Rise Charges + Facing Charges + Amenities Charges): Rs. 553,062.50
Registration Stamp Duty at 7.6% on Total Amount (Base Price + Floor Rise Charges + Facing Charges + Amenities Charges): = Rs. 840,655
Now, let’s sum up all these amounts to calculate the total cost for the 2BHK flat:
Total Cost = Base Price + Floor Rise Charges + Facing Charges + Amenities Charges + Infrastructure Cost + Maintenance Charges + Corpus Fund + Legal and Documentation Charges + GST on Total Amount + Registration Stamp Duty
Total Cost = Rs. 12,893,267
So, the total cost for the 2BHK flat on the 7th floor with the specified charges and calculations is Rs. 12,893,267
Scenario 2: A 3BHK Flat on the 11th Floor with 2000 Sq.ft Super built-up area (East Facing, Corner View)
Base Price: 2000 sq ft * Rs. 7500 = Rs. 15,000,000
Floor Rise Charges (7 floors above 4th floor): 7 * 2000 sq ft * Rs. 25 = Rs. 3,50,000
Facing Charges (East Facing): 2000 sq ft * Rs. 100 = Rs. 2,00,000
Charges for Corner Preference (Corner View): 2000 sq ft * Rs. 100 = Rs. 2,00,000
Amenities Charges (Including 1 Car Parking): Rs. 7,00,000
Infrastructure Cost: Rs. 2,50,000
Legal and Documentation Charges: Rs. 20,000
GST on Legal and Documentation Charges: 18% of Rs. 20,000 = Rs. 3,600
Maintenance for 2 years: 2000 sq ft * Rs. 72 = Rs. 1,44,000
Corpus Fund: 2000 sq ft * Rs. 50 = Rs. 1,00,000
GST of 5% on Total Amount (Base Price + Floor Rise Charges + Facing Charges + Corner Preference Charges + Amenities Charges): Rs. 1,47,500
Registration Stamp Duty at 7.6%: 7.6% of Rs. 29,50,000 = Rs. 2,24,200
Now, let’s sum up all these amounts to calculate the total cost for the 3BHK flat in an under-construction community:
Total Cost = Base Price + Floor Rise Charges + Facing Charges + Corner Preference Charges + Amenities Charges + Infrastructure Cost + Legal and Documentation Charges + GST on Total Amount + Maintenance for 2 years + Corpus Fund + Registration Stamp Duty
Total Cost = Rs. 173,39,300.
Understanding these additional charges is crucial when buying a flat in a high-rise gated community in Hyderabad. While they may seem complex, these charges are designed to ensure your comfort and convenience in your new home. Being aware of them allows you to budget effectively and make informed decisions, ensuring a smooth and satisfying home-buying experience in the vibrant city of Hyderabad.
If you are looking to buy a new flat in Hyderabad, we can help. VBVR Projects offers free consulting services and site visits to assist you in finding the perfect home that meets your needs and fits your budget. Contact us today to explore your options and make the right choice for your dream home.
