Your desire to stay up in the clouds can cost you a lot more now, thanks to the new Guidance values introduced by the Stamps and Registration Department on the 12th of August, 2013.
Though you have been paying extra for the floor rise to the builder the guidance value always was flat for any floor in the building but now based on the new Guideline you will have to pay up extra for every floor above the 5th floor.
This system is applicable for all apartments, villas, villaments, tenements, gated community houses, cluster houses and row houses.
The price of space in apartments and commercial complexes increases depending on the amenities and floor number.
What is floor-based valuation concept?
According to the Stamps and Registration Department, floor-based valuation means that apartment dwellers staying from ground to 5th floor will not pay any additional amount, apart from the land charges guidance value and stamp duty based on that. But from 6th floor to 15th floor, buyers will have to pay 0.5% more for each floor. So buyers will pay more the higher they go floor-wise.
But this cap is only till the 15th floor. From the 16th floor onwards, the value is only 5% more than the actual value, however high the building is – even up to 40th floor. For example, if the property is worth Rs 1 crore, the buyer will now pay an additional amount of Rs 5 lakh and a stamp duty of Rs 25,000, on whichever floor the space is located, after 16th floor.
‘Builders are already charging extra!’
However, N. A. Afzal, Treasurer of Homemakers and Realtors, who is also the Chairman- Legal Affairs of Bangalore Realtors Association – India (BRA-I), says that the builders already have the same floor-based valuation in place. They charge the buyer around Rs 50 per square foot (PSqft) extra for every floor.
This is because the cost of construction increases with every floor. Buyers too prefer homes on higher floors because there is less noise, better view, cooler breeze and so on. So when a customer is already paying more for purchasing, there can be more stamp duty on higher guidance value. This is acceptable,’’ adds Afzal.
Thus, in effect, the Stamps and Registration Department has legalised the already existing price structure among the high rise apartments.
Pay more for extra amenities
Under amenities-based valuation, 15 categories or groups have been listed, for which the builder will have to pay additional charges based on guidance values. The buyers in turn will be paying more. The first four amenities (from any of the 15) provided by the builder will not have any effect on guidance value. For every amenity after this, builders will be charged. As the builders are being charged additionally it transpires as always into the customer paying additionally too.
The 15 groups under which amenities are segregated are as follows:
- Club house, community hall, indoor amphitheatre, conference hall, health club, temple, party hall, card room, reading room, library, banquet hall, dance and karaoke hall, party area, party lawn, carom room and similar types of amenities.
- Jogging track, running track, cycling track, walking track, pebble pathway, reflexology path and similar types of amenities.
- Children play area, tot cot, children game area, garden, water body, decorative pool, plantation garden, barbeque pits, crèche, landscape area, fountain and similar types of amenities.
- Canteen, mall, commercial space, ATM, bank, HOPCOM, Janatha Bazar, Nandini Milk Outlet, Provision store, lounge and foyer, cafeteria, supermarket, plaza and similar types of amenities.
- All types of outdoor play area, Badminton, Tennis, Basket ball, Volley ball, Base ball, Cricket, Football, Hockey, Golf field and similar amenities.
- All types of indoor game areas, squash, snooker, Table tennis and similar amenities.
- Swimming pool indoor, kid’s pool, wading pool, aqua gym and similar amenities.
- Cargo lift, elevator, mechanical lift for car park, high speed elevator and similar amenities.
- Surveillance of common area, manned security with video surveillance intelligent security, motion sensor based lighting multi camera security, CCTV, Gated community, Intercom, Wi-Fi Internet parlour, video conference facility, generator, UPS, kiosk, visitor tracking system and similar types of amenities.
- Helipad and Golf Field.
- Outdoor amphitheatres, open air theatre, open stages and similar types of amenities.
- Health clinic, ayurvedic parlour, massage parlour, beauty parlour, spa, aerobics, yoga, meditation, unisex parlour, Steam and Sauna Jacuzzi, gym, day care centre, health club and similar types of amenities.
- Indoor amphitheatre, dance and karaoke hall, drama stage, home theatre hall.
- Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas, bank, gas detector.
- Nearness to airport, railway station, bus station (About 5 km)
After ANY or ALL amenities from ANY FOUR groups above, available in the apartment you buy, there will be an additional increase of 1% on value of super-built area and additional higher floor area for EVERY or ALL facilities in any other group. This excludes car parking.
The guidance value notification also points that there will be no additional increase in valuation if the builder offers more than the listed 15 groups of amenities.
But there is some good news. The Stamps and Registration Department has fully exempted the following amenity groups from guidance value assessment. They are:
- Rainwater harvesting, solar power, solar water heater, fire fighting, fire prevention, green building concept, low carbon material usage and similar types of amenities.
- Sewage treatment plant, solid waste management, individual garbage chute, reflective roofs, water recycling / reuse plants.
Where is new guidance value copy available?
You can see the stamps and registration website for a PDF version of the final notification at http://www.karunadu.gov.in/karigr/. The hard copies and CDs of the final notification are also available at the office of the various sub-registrars.
In the website, you can also check the address of their nearest sub-registrar’s office.
However, here’s the catch. The hard and soft copies of the final guidance value notifications are mostly in Kannada, except for the names of apartments/gated communities. So if you cannot read Kannada you will need the help of others to read and understand the notification.