Introduction
Owning a 4 BHK apartment at Prestige Southern Star, Bengaluru, comes with several costs beyond the purchase price. These include property tax, maintenance fees, utility bills, and other expenses. This guide provides a comprehensive overview of the various costs associated with owning a 4 BHK apartment.
Property Tax
Overview
Property tax is an annual tax paid by property owners to the local municipal corporation. In Bengaluru, the Bruhat Bengaluru Mahanagara Palike (BBMP) is responsible for collecting property taxes.
Calculation
The property tax in Bengaluru is calculated based on the Unit Area Value (UAV) method, which considers the following factors:
- Location: The property’s location within the city.
- Property Usage: Residential, commercial, or industrial use.
- Property Dimensions: Built-up area and plot size.
- Age of the Property: Older properties may have different rates.
Payment
Property tax can be paid online through the BBMP website or at designated BBMP offices. Payments are usually due annually or semi-annually.
Maintenance Charges
Overview
Maintenance charges are fees paid by apartment owners to the housing society or property management company for the upkeep of common areas and facilities.
Components
- Common Area Maintenance: Cleaning, landscaping, and maintenance of lobbies, corridors, and other common areas.
- Security: Salaries for security personnel and the maintenance of security systems.
- Utilities: Electricity and water supply for common areas.
- Repairs: Routine repairs and maintenance of building infrastructure.
- Amenities: Upkeep of amenities such as swimming pools, gyms, and clubhouses.
Payment
Maintenance charges are typically paid monthly, quarterly, or annually, depending on the housing society’s rules.
Utility Bills
Electricity
- Monthly Bills: Electricity bills depend on usage and are charged by the Bangalore Electricity Supply Company (BESCOM).
- Rate Structure: Rates vary based on consumption slabs.
Water
- Water Supply: Water charges are usually included in maintenance fees, but some apartments may have separate billing.
- Borewell Water: Additional costs may be incurred for borewell maintenance and usage.
Gas
- LPG/PNG: Costs for liquefied petroleum gas (LPG) or piped natural gas (PNG) for cooking and heating.
Insurance
Home Insurance
- Coverage: Protects the property against damages due to fire, theft, natural disasters, and other risks.
- Premiums: Based on the property’s value, location, and coverage amount.
Content Insurance
- Coverage: Protects personal belongings and home contents against theft, damage, or loss.
- Premiums: Calculated based on the value of the insured items.
Loan Repayments
Home Loan
- EMI: Equated Monthly Installments (EMI) are paid towards the home loan principal and interest.
- Interest Rates: Vary based on the lender, loan amount, and tenure.
Loan Insurance
- Coverage: Optional insurance to cover loan repayments in case of unforeseen circumstances.
- Premiums: Based on the loan amount and tenure.
Registration and Stamp Duty
Overview
Registration and stamp duty are one-time charges paid during the property registration process.
Stamp Duty
- Rate: Typically 5-6% of the property’s market value in Bengaluru.
- Payment: Paid to the state government at the time of property registration.
Registration Fee
- Rate: Approximately 1% of the property’s market value.
- Payment: Paid along with stamp duty during the registration process.
Sinking Fund
Overview
A sinking fund is a reserve fund collected by the housing society for future major repairs and replacements.
Contribution
- Amount: Typically a percentage of the monthly maintenance charges.
- Purpose: Used for major expenses like repainting the building, replacing elevators, and other significant repairs.
Legal and Administrative Fees
Legal Fees
- Documentation: Costs for drafting and reviewing legal documents related to the property purchase.
- Consultation: Fees for legal advice and services during the buying process.
Administrative Fees
- Processing Fees: Charges for processing home loans, property registration, and other administrative tasks.
- Service Charges: Additional fees charged by real estate agents or property consultants.
