Understanding All Maintenance Costs

Page 1

Understanding All Maintenance Costs

Eachresidentialcommunitychargesamaintenancefeetocoverthecostoffacility maintenance.Thefeesmayormaynotbedisclosedatthetimeofhomepurchase, buttheyhaveasubstantialimpactonthecostoflivingasawhole.Therefore,you mustunderstandwhatyouareagreeingtointhelongtermbeforeyoufinishthe contract.

Are you searching for new projects in parel?

Bothpurchasingapropertyandresidinginagatedcommunityareexpensive endeavours!Thecostofahomedoesnotincludeallexpenses.Additionalfacilities andamenitiescomewiththeneedtomaintainthem.Residentialsocietiesask tenantstopay‘maintenancecharges'forthisreason,whichcanrangefromRs1to Rs3persqftandadduptoasignificantmonthlysum.Mostofthetime,when consumersarepurchasingaunit,developersdonotdisclosethesefeestothem. However,delayingmaintenancepaymentsdramaticallyraisestheexpenseofliving. Therefore,itisessentialtounderstandallthesubtletiesofmaintenancefees,which areassessedeithermonthlyoryearly,ifyou'relookingforapropertyina residentialcommunity.

What exactly does maintenance entail?

Theupkeepofasocietyincludessomeoftheamenitiesprovidedtothecitizens.For theroutinemaintenanceofessentialservicesandinfrastructure,suchasparks, elevators,firesafety,parking,commonspaces,power,andwatersupply,among others,theResidents'WelfareAssociation(RWA)orthebuildermaychargeasmall fee.

Themaintenancecostisoftenchargedupfrontforthefirstyearaftertheprojectis deliveredbythedeveloper,whoalsotakescareofanysocietalduties.Whenthe RWAisestablished,thedevelopersturnovertherunningoftheorganisationtothe functioningbodysothattheycancollectfeesandcarryoutmaintenanceprocedures inaccordancewiththeirspecifications.

Maintenance guidelines

TheRealEstate(Regulation&Development)Actof2016(RERA)hasmadeit mandatoryfordeveloperstodiscloseallfees,apaymentplan,andanaccurate breakdownofallchargesinthebuilder-buyeragreementinordertopreventany misunderstandings.Additionally,RERAhasheldthedevelopersaccountableforany structuralproblemsrelatingtobuildingqualitywithinthefirstfiveyearsofthe projectdelivery&requiresthemtoprovidefreeofchargeremediesinsuch circumstances,protectingtheinterestsofthebuyers.Developersmaybesubjectto legalrepercussionsforfailingtoadheretotheRERAregulations.

Norms for calculating maintenance charges

Theidealmaintenancefeesareassessedpersquarefootforeachflatorunit.Each unit'soccupantssplitthecostsequallyforservicesincludingcleaning,rubbish collection,equipmentuse,repairsandmaintenanceofsharedfacilitieslikethelift. However,theutilitybills(forwaterandelectricity)arebasedonindividual consumption.

Interest-Free Maintenance Security (IFMS) – what is it?

Whenbookinganapartment,youcouldhaveseenthephraseInterest-Free MaintenanceSecurity(IFMS)inthepricebreakdown.ThedeveloperchargesIFMS inlieuofsustainingthesocietyupuntiltheformationoftheRWA.Iftherewasany moneyleftoveratthetimetheRWAwasformed,itwasgiventotheorganisationto

useformaintenancepurposes.TheIFMSassistsbuildersinresolvingproblemsthat ariseafteraprojectiscompletedorimprovessocietalamenitiesby,forexample, enlargingaparkoraddinganadditionallayerofprotection.

Incertainhigh-endcommunities,developersalsocollectasinkingfundthatissolely usedforunplannedexpensesandemergencies,whiletheIFMSissetasidetopayfor guards,contractors,modestrepairs,etc.onadailybasis.

GST's effects on maintenance charges

PriortotheimplementationoftheGoods&ServicesTax(GST),maintenancefees weresubjecttoa15percentservicetax,a0.5percentnon-agriculturaltax,anda0.5 percentSwachhBharatCess.However,undertheGSTsystem,residentialsocieties thatcollectatotalofmorethanRs20lakhinmaintenancefeesmustchargethe propertyownersan18%GST.GSTisnotappliedtomaintenancefeespermonth thatarelessthanRs7,500.

Residentialsocietymaintenancefeesaresubjecttothe18percentGSTrate. ResidentsinthesameStateastheproject,however,mustpayanI-GSTof9%.For instance,youwouldpay9%GSTonmaintenancefeesifyouwerearesidentof HaryanaandpurchasedapropertyinGurgaon.However,ifyouarearesidentof DelhiandacquireoroccupyrealestateinGurgaon,youwouldbesubjecttoan18% GSTcharge.Finally,onceyou'vedecidedonaproperty,it'scriticaltodouble-check themaintenancefeesandothercostsassociatedwiththepropertybecausetheywill invariablyhaveanimpactonyourbudget.

You’re looking for Projects in Vikhroli we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/vikhroli/

If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.