Homebuyers, Now Spend More For Property Registration In Karnataka
Homebuyers in Karnataka will now have to pay more as the guidance value of properties are expected to get revised. Depending on your location the increase would vary between 5-20 per cent, making property expensive.
The state government issued a notification on August 29 proposing a revision in guidance value and invited objections from the public within 15 days. The revised rates will come into effect before by the end of September.
Property registration to be costlier for buyers
In Karnataka, a buyer pays about five per cent of the property value as stamp duty, and one per cent of the property price as registration charges.
However, the rates would soon change. There are some localities where the proposed hike is over 30 per cent. For instance, the applicable guidance value in Bengaluru’s Airport Road exceeds the market value by 10 per cent. Periodic revisions in the guidance value can affect the property developments in a city or a locality. This is likely to impact the homebuyers’ sentiments. While the present property prices in Bengaluru have already gone through the roof, experts feel that transactions could see a decline as buyers would feel the burden of additional charges and builders would need to pay higher taxes.
Revenue gains for the government
The new guidance value, despite the mandated annual revision, has been changed after two years in Karnataka. The government is expected to earn revenue between Rs 1,000 and Rs 1,500 crore.