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10 Extra Costs That Accompany An Apartment Purchase

8 tips on buying a property for the first time

A typical Real Estate Price list always has extra costs which some people find hard to understand.

I have written this blog post so my readers could understand the costs that accompany a house purchase.

This list is particularly relevant to real estate projects in Mohali and Zirakpur but Indian readers will find that barring one or two most of things are pretty standard.


Basic sale price is the price of the unit. It is the price on which you can expect some negotiation from the builder. Generally, This is the price that is quoted in all the advertisements.

BSP also has some varioations for example the BSP for units on floorwise rate are different.

We will discuss this further below.

Quick Tip: Some unethical agents use a lower price than the bsp to attract customers. Such ads can be found on popular real estate portals and should be best avoided.

All right now let us discuss one by one the extra costs associated with buying an apartment.

1. GST

Most of you are aware of the Goods and service tax.

The governement levies the GST on real estate products in two slabs:

  • Affordable housing under 45 lacs attracts a GST of 1% on registered value
  • Apartments above 45 lakhs attract a GST of 5 %

There is no GST on ready to move apartments that have the relevant documentation (occupation certificate) of completion.

2. Registration Plus Stamp Duty

The other big cost of buying an apartment is the registration and the stamp duty.

In Punjab, the cost of both these components combined is as follows:

  • Males – 8%
  • Females – 6%
  • Joint – 7%

Registry adn stamp duty are charged on the BSP in the agreement.


IFMS is Interest free maintainence security.

IFMS is a collective amount of the society which every home buyer pays at the time of purchase.

A common fund is collected under a separate account and the builder is supposed to transfer this amount to the RWA once it is formed.

The purpose of IFMS is to collect a fund for emergency breakdowns and future work that require a substantial investment.

Generally the IFMS charges range from 25,000 to 50,000 in Zirakpur and Mohali.

4. Club House

Most builders charge Club house charges ranging from 50,000 to 100000.

These charges are pretty standard across developers.

The builder uses this amount to create a club house and amenities in the society.

5. Power Backup

One needs to be careful and question the builders here.

I know of builders that charge 50,000 for 3 KV and at the same time some builder charge 50,000 for 5 KV.

The builder provides a minimum backup and this generally ranges from 2 KV to 3 KV.

If you want additional backup generally one needs to pay approximately 20 to 30 thousand per KV extra.

6. Gas Pipeline

Many new projects in Zirakpur and Mohali now come with gas pipeline as a standard fitment although not necessarily.

Builders charge approximately 20,000 rupees for the gas connection here.

Now, let me be clear here, these figures may change from builder to builder and may change from time to time,.

I am giving you an average amount that the builders currently charge.

7. Parking

The builders provvide one marked parking free with the apartment.

If you have more than one cars or if you are buying a luxury apartment than you will have to buy an extra parking.

This cost can be substantial and most high rise societies will charge a handsome amount for parking.

Parking troubles is one of the most common issues that is ignored by home buyers but it is one of the most troublesome at a later stage.

8. Preference Location Charges

There are multiple types of preference location charges that a builder charges.

There could be a single PLC, Double PLC or more on an apartment.

The most common types of PLC charges are :

  • Park Facing PLC
  • Corner Facing PLC
  • Floor PLC
  • Roof rights PLC

Depending upon the apartment there could be a single PLC or double PLC on the apartment.

These charges could be anywhere between 5 % to 10 % of the BSP of an apartment.

9. Maintainence costs

You will need to pay maintainence costs @1.5 to 2 rs per square feet for an apartment in Zirakpur or Mohali.

The builder will take 3 years mainatainence upfront at the time of posession.

Generally, one year advance and 2 years post dated cheques are taken by the builder.

10. Miscellanous

Lastly, there are other miscellanous charges that one needs to be prepared for. These costs are generally not too big and include documents cost and bank loan processing fees.

There are some other charges which I am sure most of you will understand. I cannot write about that here.


I hope this comprehensive list will help you plan your finances better for the purchase off your dream home.

As you can see there are plenty of extra costs associated with purchasing a house but I request my readers to not be discouraged with these costs.

This is the best time to purchase a property and many people have taken advantage of lowest home loan rates and

If you are looking for an apartment in Zirakpur or Mohali and need some advice, you can contact me by filling up the contact form on the page and I will get back to you as soon as I can.

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