Guidance value is the price (usually price per square feet) quoted by government for properties in a particular locality. Property investment is not an easy thing. Calculating the guidance value of the property is a complicated issue. Before buying a property, considering the builder and locality are not the only things that need to be looked at, there are so many other formalities that an individual has to undergo before owning a property.
The price per sq.ft cannot be negotiated or quoted below the price defined by the government. This value is derived based on the population, development and other attributes of the locality. The guidance value can appreciate or depreciate based on the locality. By raising the guidance value, Government expects higher revenue. Therefore, once in 3-4 years usually there will be an increase in guidance value.
Step 1: Basic Guidance Value Calculation:
These values are quoted by the Department of Stamps and Registration, Government of Karnataka. This value is derived based on the locality, buildings, and upcoming projects. If the locality is booming with premium apartments, villas, and upcoming projects from renowned owners, the guidance value of the locality is likely to rise. Every apartment or project can have different guidance value based on the structure of the project, flooring type and other features of the apartment. So, when one is on a lookout for a new property, consider the guidance value and evaluate your investment budget. Real estate experts say that the higher the guidance value, the well-developed is the project and locality.
Step 2: Higher floors come at an additional cost:
The government of Karnataka quotes higher guidance value for higher floors. For up to 5 floors, there is no increase in the base guidance value, but, from the 6-floor additional charges are quoted on your property.
These are the additional costs for each floor:
|15th Floor and above||5%|
Step 3: With every amenity groups a higher guidance value is charged:
Today, no residential property sells out without offering lifestyle amenities. The property seekers are on a look out of these amenities to charge up their living. According to the Bengaluru government, these amenities are grouped into 14 categories terms of Clubhouse, Fitness, Children Play area, Commercial spaces and much more. So, while you are looking out for the perfect residential property, ensure that you do seek for more because the more you look for the higher your investment cost shoots.
|Groups||% of Guidance Value|
|4 or less groups||No additional cost|
|14 groups and above||7.5%|
Step 4: Car Parking plays a role too:
Coming to the car parking category, this is calculated based on your total value of the apartment. Summing up the first three steps will derive your car parking guidance value.
|Property Value||Car Parking Guidance Value|
|Upto Rs.50 Lakhs||Rs.1.50 Lakhs Rs.1.35 Lakhs|
|Above Rs.50 Lakhs and upto Rs.1 Crore||Rs.2.00 Lakhs Rs.1.50 Lakhs|
|Above Rs.1 Crore||Rs.2.50 Lakhs Rs.3.00 Lakhs|
So, add your car guidance value to the amount derived from amenities guidance value. Note: For every additional car you will have to multiply it by the number of cars you own. After this, 6.6% of Stamp Duty + Registration Fee is applicable. And that would be the cost of your residential property.
For example: The Base Guidance Value for your Flat is Rs.5500/- and the Super Built Up Area of the property is 2000 sq.ft, your apartment is on the 8th floor and the amenities your apartment offers falls under group the of 5 and you own 1 car.
= Basic Guidance Value * Built up area * Floor range * Amenities Group + Car Parking + Stamp duty and registration fee:
= 5500*2000*1.5%*0.75%+2.5Lacs+6.6% = 1.25 crores is the cost of your property investment.
SOLID GROUNDS REPORT BY INDIAPROPERTY.COM
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