[Disclaimer: This post is not sarcastic]
Buying a house is one of the critical milestone of an Indian family. However, unlike packaged items having MRP printed on them, the real cost of a house is not as straight forward. More so in Metros, where one is buying a flat rather than a standalone house.
So, what is the real cost of a house or flat?
Typically house or flats are advertised for sale at per square rate (psf). However, this is not the total cost of the flat. There multiple other cost components that get added on top of it.
Here’s an example:
As you can see a flat advertised at the price of Rs 50 Lakh (Rs 5000/sqft X 1000 sqft) actually costs more than 20% higher at Rs 62 Lakh. If the flat is purchased by availing loan then the Landed cost of flat further goes up as one needs to pay additional interest on the loan amount.
Another important factor that people discover later is that the psf rate is charged on something called “Super Built up” area, which is higher than the actual area of the flat (carpet area) by 20-30%, sometimes even 40-50%.
This doesn’t include additional recurring costs like maintenance charge (levied by Societies for upkeep of common amenities in the society), property tax, home/fire insurance etc.
PS- if you dont like serious stuff, enjoy this- http://gameofdumbs.com/chart-day-super-built-area/