Many people, while buying a flat, only take into consideration the total area of the flat and calculate the cost. You must understand that there are other costs involved such as registration fees, stamp duty and several other taxes. As these charges are fixed, you have to take them into consideration. There are some other costs too which are not fixed but are unavoidable.
Exact area and cost
You should know that the main built-up area of the flat is not its actual usable area. The actual area that you can use is called carpet area, in other words, the area of the flat which can actually be carpeted. This area is almost 40% less than the built-up area. The built-up area includes the walls etc. That means, when you buy a flat of 1,000sq. ft built-up area, you will get 600sq. ft of carpet area. Based on this, you can determine the real price you need to pay.
Most people tend to miss the registration and stamp duty costs. These costs are important and one should take them into account while calculating the total cost. You should also remember that area maintenance charges too are involved. It does not stop here as you also need to calculate the service tax and property tax payments. If you have availed a loan, you also need to calculate the EMIs.
The common areas around your flat also cost you a good amount of money. Common areas are those areas which all flat owners use collectively. They can be the lobby, lift area, the area of a drive way and even the area of the swimming pool and gym, if your building has any. This value will be added to your final invoice which is why they too must be calculated.
Nothing is free
Many flats have recreational areas such as swimming pools, entertainment units, gyms, clubs etc. that you have to pay a fee for. This fee is apart from what you pay for them as common areas.
Your flat would have employees such as a liftman, caretakers, cleaners etc. and all the flat owners would contribute towards their salaries. Also, there would maintenance costs for water supply, playgrounds, usage of the lift, etc. which will have to be taken into account.