Guidelines to buy an affordable open plot in Hyderabad
Many of us dream of owning a home, but there are always a lot of factors that go into choosing between a gated apartment or a residential plot. Having a plot area as an investment is a better option as it offers a higher resale value. Here are a few guidelines to keep in mind while buying a residential plot in Hyderabad.
The registration rates have been increased by 20% to 50% in Hyderabad for all agricultural and non-agricultural lands.
Research the current land rates and price trends in the localities that you are interested in. The average rate of land per square foot in Hyderabad is around 4500/- (per sft).
To get a better picture of the land rates, we give you a compilation of some of the most preferred locations in Hyderabad for open plots with their land values (per square yard) in 2021.
*Numbers are from the internet & top real estate research compainy’s report
Stamp duty and registration charges
The State government collects stamp duty when a property is transferred. The exact amount of stamp duty charges varies depending on the state. The Registration and Stamp Department of Telangana collects 6% of the property value as registration charges that include the registration fee, stamp duty, transfer duty, and nominal user charges.
Below are the Stamp duty rates collected in Hyderabad for immovable property registration in Hyderabad.
Factors affecting the stamp duty
Stamp duty is calculated on the market value of the property. However, factors like the age of the property and the property owner, type of the property (residential/commercial/industrial), gender of the owner, location of the property (urban/rural), amenities offered, etc decide the stamp duty of any property.
Calculating stamp duty and registration charges for open plots in Hyderabad
Let us assume that Mr. X is interested in a plot sized 2000 sft in a specific area in Hyderabad. The land rate in this area is Rs 5000 per sft. Now, the market value for the plot will be 5000 X 2000 = Rs. 1,00,00,000. The stamp duty (let us assume that it is a municipal property) will be 4% of the market value (1,00,00,000) = Rs. 4,00,000. Registration charges (0.5%) of 1,00,00,000 = Rs. 50,000 The total stamp duty and registration charges for this plot would be Rs. 4,00,000 + Rs. 50,000 = Rs. 4,50,000.
Therefore, Mr.X has to pay a total of Rs. 1,00,00,000 + Rs. 4,50,000 = Rs. 1,04,50,000 to buy this specific plot.
Apart from the above discussed, there is a checklist with a few items – like sale deed document, title deed document, necessary approvals from the local governing body, etc., – that should be thoroughly looked at and researched before buying a plot.