The exact cost and the area

To start with, you ought to know the exact area of your house, which is used to calculate the cost of the house minus the taxes and other fixed costs. Today, most projects are sold on the basis of the tremendous built-up area (SBUA). "The SBUA is usually 40% to 60% over the carpet area. Which means that in the event you buy one,200 sqft of space from the builder , it can be safely assumed that your net carpet area will be around 700-750 sqft," says Akshay Kulkarni, executive director - India , residential services, Cushman & Wakefield .

Keeping account of every cost

The most common costs that are not taken in to account are stamp duty and registration charges, floor rise, and the maintenance cost per square foot. "While a number of the additional charges such as stamp duty and maintenance are known to most buyers, the less obvious ones - which regularly adds up to a substantial sum - are only communicated verbally. In other words, the buyer may not have a document to return to establish when such add-on costs were mentioned. Therefore, the general cost of buying a property can rise drastically above the originally quoted rate," says Mrunal Duggar , vice president - Home bay Residential , Jones Lang LaSalle . In India, the cost break-up given by a builder usually does not include the stamp duty charges. In a way it is a hidden cost for most flat buyers, since they do not factor in this cost while working out their budgets. Also, since most homes in India are bought through home loans, flat buyers ought to also take in to account the cost of an insurance policyowner to cover the property loan. Besides, a strata search of the property's legal antecedents may add up to an amount. "The registration of a new property with the local electricity board for the fitting of an electric meter involves a one-time expense . If a home is not fully furnished and outfitted, the buyer will incur the cost of furnishing, fittings and all other expenses involved in customising the property to individual needs and tastes," says Duggar. "In the case of a resale standalone property, valuation of the property could be a prerequisite. This will be charges involved in using the services of a registered valuation agency. There may even be costs incurred on the transfer of the title of the property , which is often known as conveyancing ," he says. "Society maintenance charges and a yearly property tax are among the other costs that most buyers do not factor in prior to purchasing a property." For most under-construction projects, buyers agree on a cost and the agreements are drawn up and registered, post which the bank starts to pay the cost. In most under-construction buildings , there is very tiny scope for any major negotiation on the costs to be borne by the buyer. A number of the parts that ought to be checked are - floor rise, automobile park, PLC (preferential location cost), maintenance cost and fit-out cost, if any. "Even while purchasing a resale property, all the above costs will be involved. Besides, societies may ask for transfer premium, often known as voluntary contribution, which is involuntary. It can range from 2% to as high as 5% of the registered sale value. The actual cost as per the Societies Act is Rs 25,000. Any amount over this is shown as voluntary contribution ," says Kulkarni.

The common area

Right from your fancy lobby to your elevator to the kid's pool, every square foot gets added to your bill under the common area head. There's several such parameters that come with a rupee value & get added to your final home cost tag. What makes this part of the cost tricky is that there is no standard definition for common area. Usually, common areas would comprise the floor service areas of your apartment, stair cases, lift areas, floor electrical distribution rooms, lobby, swimming pool, etc. The logic a developer gives is that a homeowner makes use of these facilities as much as his/her own house. Hence, check together with your builder on the gross floor area, the difference between the tremendous built-up area & the carpet area, & details about all that is included under common areas.

No free lunch

Builders provide facilities/ amenities like pools, gyms, health clubs, recreation areas, and yoga rooms. Some even provide spas, mini theatres, etc. However, none of these is free of cost. These facilities are included in the tremendous built-up area, in addition to all the common areas over the carpet. In some cases, where clubs, etc, are being formed, there is a separate membership fee that is to be included in the cost of the apartment . In some projects, however, the fee may be voluntary. In townships with facilities for healthcare and schooling, the premium over the basic rates will be higher.

Click here to compare Fixed Deposit Interest Rates

Society maintenance charges

Most builders take the society maintenance charges for up to years in advance. "This trend is due to the fact that it is simple to generate the facilities but difficult to maintain as time goes by. Some people finish up not paying as they don't see value in the facility provided. Hence, the best way is to take the maintenance cost upfront," says Kulkarni of Cushman & Wakefield. As far as your developer is transparent about the pricing and terms and conditions, there is no reason to worry. But now you know all the the comparatively unknown cost heads that can increase the cost of your house.