**The All-In Cost Problem**
Most property advertisements display the base price — sometimes without even GST. But by the time you've moved into your new home, you've paid for a constellation of additional charges that the brochure never mentioned.
Here's a comprehensive breakdown of costs that buyers routinely underestimate.
**1. GST on Under-Construction Properties**
Rate: 5% of base price (effective rate after ITC)
On a ₹70 lakh apartment: ₹3.5 lakh. Note: There is no GST on ready-to-move (post-OC) properties.
**2. Stamp Duty and Registration**
Tamil Nadu: ~11% of guideline value (7% stamp + 4% registration)
Telangana: ~6% of market value (4% + 1.5% + 0.5%)
Karnataka: ~6.6% of market value
On a ₹70 lakh property, budget ₹4.2–₹7.7 lakh depending on state.
**3. Maintenance Deposit**
Most builders collect a corpus fund (1–2 years of maintenance) at possession. On a building with ₹5,000/month maintenance, that's ₹60,000–₹1.2 lakh upfront. Ask if this is in addition to or included in the quoted price.
**4. Preferential Location Charges (PLC)**
Facing a garden? Higher floor? Vastu-compliant corner unit? Expect ₹100–₹350 per sqft extra. On a 1,200 sqft apartment, PLC can add ₹1.2–₹4.2 lakh.
**5. Car Parking**
Covered parking: ₹4–₹8 lakh in major South Indian cities (often quoted separately from the flat price). Open parking: ₹1–₹2 lakh. Some builders include one covered parking slot; always confirm.
**6. Interior and Fitment Work**
Even if the apartment is "semi-furnished," you'll need to budget for:
- Flooring upgrade, false ceiling, painting: ₹3–₹5 lakh (for 1,200 sqft)
- Kitchen cabinets (if not included): ₹2–₹4 lakh
- Wardrobes: ₹1–₹2 lakh
- Curtains, light fixtures, appliances: ₹1–₹2 lakh
Total: ₹7–₹13 lakh for a 2BHK.
**7. Home Loan Processing Fee**
Bank processing fees: 0.25–0.5% of loan amount. On a ₹50 lakh loan: ₹12,500–₹25,000. Plus insurance premium (if bank requires loan protection cover): ₹30,000–₹80,000.
**8. Legal and Due Diligence Costs**
- Property lawyer fees: ₹15,000–₹40,000
- Encumbrance certificate: ₹200–₹500
- RERA verification: Free (online)
- Pre-possession inspection (snagging): ₹5,000–₹15,000
**The Real Total**
| Cost Component | ₹70L Apartment (TN) |
|---------------|---------------------|
| Base price | ₹70,00,000 |
| GST (5% UC) | ₹3,50,000 |
| Stamp + Registration (~11%) | ₹7,70,000 |
| Parking (covered) | ₹5,00,000 |
| Maintenance deposit | ₹1,00,000 |
| PLC | ₹1,50,000 |
| Interiors (basic) | ₹8,00,000 |
| Legal + misc | ₹50,000 |
| **Total** | **₹97,20,000** |
A "₹70 lakh apartment" costs nearly ₹1 crore when you're done. Always budget this way.
Home Buying Guide · 7 min readby PropSouth Editorial
Hidden Costs of Buying a Home in India: 8 Charges That Catch Buyers Off Guard
Your builder's quoted price is rarely your final cost. Between GST, registration, interior work, and society charges, the real cost of buying a ₹70 lakh apartment can easily cross ₹82–85 lakh.
#Hidden Costs#Stamp Duty#GST#Home Buying
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