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If there were an Indian dream like the famous American dream, owning a house would be the primary milestone in it. It is a substantial achievement that brings space, safety, and strength to one's life. However, buying a house is not easy as it is a long-term monetary and emotional commitment. Home buyers need a good sense of the proper budget, property type, location, amenities, its builder's reputation, and more.
Further, when buying a house, one should remember that the price quoted by the seller is not the definitive price. A few lakhs will be added to the price while registering it. Because stamp duty, registration charges, cess, and surcharges will be levied.
All the costs, when put together, can come up to 7% to 10% of the total market value of the house or even more. In most Indian states, 5% to 7% of the total market worth of a property is charged as stamp duty, while 1% is charged as a registration fee.
Pune is one of the few Indian cities that has revived rapidly and have made it among the country's top cities for its real estate market. The main reasons are the excellent residential projects in Pune, the advanced business models, and the improved clarity between sellers and buyers. Pune constantly creates newer standards regarding infrastructure, locality, projects, amenities, design, and more.
As per the latest report, the stamp duty in Pune has risen by 1% as an additional metro cess is being charged on all property purchases from April 1, 2022. The property registration charges in Pune for properties below Rs 30 Lakh is 1% of the total property value, and for properties above Rs 30 lakh, it is capped at Rs 30,000.
Until December 31, 2020, the Maharashtra government had lowered the stamp duty from 5% to 2%. Post-December, the government levied a 3% stamp duty until March 31, 2021. However, on April 1, 2021, that stamp duty retreated to 5%.
After the additional metro cess charge, home buyers in Pune will now have to pay 7% (Stamp Duty 5% + Local Body Tax 1% + Metro Cess 1 %) of the property's value as stamp duty. However, female homebuyers will get an added 1% concession for registering the house in their name.
Also, on March 23, 2022, the Maharashtra government announced a stamp duty exemption on properties on resale from 1 to 3 years. Now stamp duty will be paid only on the difference in the price of a property and not on the total amount for 3 years. Various experts in cooperatives and stamp duty sectors have expressed that the decision will improve the number of investments, promote sale-purchase contracts and construction businesses, and ultimately bring in more job prospects.
The property type, whether an apartment/flat or an independent house, specifies the difference in the land registry stamp duty charges. A flat/apartment costs more than an independent house.
The property's location decides the stamp duty costs. If the property is located in an urban area, the stamp duty will be higher than those in suburban or rural areas.
Stamp duties are calculated as a percentage of the property's total market value. Old properties usually draw less stamp duty, and new buildings attract a high charge. This is because the value of old buildings would have been depreciated.
The age of the property's owner is a crucial factor in deciding the stamp duty costs. Nearly all state governments have subsidized stamp duty costs for senior citizens. Likewise, women also get a concession on stamp duty if the house is registered in their name.
Registering a property is crucial as it saves the owner's interest and guards the 'property title' in case of disputes. Therefore, it is advised to register a property once the sale process is finalized. For residential projects in Pune, the current stamp duty is 7% of the property's market value, and the registration charges for properties below Rs 30 Lakh is 1 % of the total property value. For properties above Rs 30 lakh, it is capped at Rs 30,000.
