If you are planning to buy an under-construction property, make sure you approach the right builders. A majority of them have years of experience and can provide the specific service you are looking for. You can build your dream home without punching a hole in your pocket if you are aware of the various factors on which the cost of an under-construction property depends. You have to pay numerous costs which can confuse and underwhelm you. As far as the overall property cost is concerned, it is generally dependent into 2 categories. The amount you are paying to your builder and the amount you are paying as the statutory and legal costs.
Buying A Under-Construction Property? Factors On Which Its Cost Depends
- Basic Cost
The basic cost of a property is determined by multiplying the rate per square feet with the unit’s super built-up area. Though this is considered to be the initial cost of the property, it is just 80% of the total amount you have to pay for it. You have to pay the basic cost to the builder at various stages of the construction process. To know how much you have to pay, go through the builder’s guidelines. Generally, they ask to deposit around 10 to 20% of the total cost before the project starts.
- Parking Charges
Not everyone buying an under-construction property is aware of the fact that the parking charges are also included under the builders cost. Though the price is just 3 to 4% of the property cost, you might end up paying in lakhs if you need a big parking space. Another vital factor on which the cost of a parking space depends is the experience and type of builder you are opting for. Stay prepared to pay a few extra pounds if you are planning to invest in a luxury property with two car parking facility.
- Maintenance Charges
The upfront maintenance charges builders in Dorking ask for include the security charges, maintenance deposits and society formation charges. You might have to pay maintenance charges for your building for a year or two even after it is ready for possession and handed over to you. The amount collected during that time is handed over to the new association. They later determine a fixed maintenance charge which the homeowner has to pay on a yearly, quarterly or monthly basis. The policies differ from one property to another.
- Location Charges
Stay prepared to pay an extra location charge if you are willing to buy a house overlooking a garden, swimming pool or sea. Some buyers of Indian origin don’t even mind paying a few extra pounds for a vastu-compliant house. Builders charge preferential location charges for a specific type of apartment. The floor rise premium is dependent on the climatic conditions and differs from one city to another.
Since you are now aware of the various factors on which the cost of an under-construction property depends, it’s time you start looking for renowned builders and built your dream home.