Bengaluru Property Registration Before August: Tips and Tricks to Save Time and Money
If you plan to buy a property in Bengaluru, you should complete the Bengaluru Property Registration soon. That’s because the state government has announced that it will increase the property guidance values by 10 to 20 per cent from next month, making the registration process more expensive.
What are property guidance values, and why do they matter?
Property guidance values are the minimum prices at which a property can be registered in Bengaluru. The government fixes them, and they are usually lower than the property’s market value. The stamp duty and registration charges you must pay when registering a property are based on the guidance value, not the market value.
For example, if you buy a property worth Rs 1 crore in an area where the guidance value is Rs 50 lakh, you have to pay stamp duty and registration charges of Rs 50 lakh, not Rs 1 crore. This means you save a lot of money on the registration process.
However, if the guidance value goes up by 20 per cent. You have to pay stamp duty and registration charges of Rs 60 lakh. It means you have to pay an extra Rs 10 lakh for the same property.
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How much will the guidance value hike affect you?
The government has said that it will revise the guidance values by 10 to 20 per cent across Bengaluru from August 1. It is happening after a gap of four years. This means that depending on the area and type of property you buy. You may have to pay between 10 to 20 per cent more for the registration process.
The impact will be more in areas where the market value is much higher than the guidance value. For instance, in some prime locations, the market value is Rs 15,000 per sq ft. While the guidance value is Rs 8,000 per sq ft. If the guidance value goes up by 20 per cent. The stamp duty and registration charges will increase by Rs 80,000 per sq ft.
How can you save money on property registration?
The best way to save money on property registration is to register your property. Before August 1, before the new guidance values come into effect. This way, you can avoid paying the extra charges and save significant money.
To register your property quickly, you can look for ready-to-move-in apartments and plots. As they do not require approvals or clearances. You can also opt for online registration, which is faster and hassle-free. You can visit https://kaverionline.karnataka.gov.in/ for more details on online registration.
However, if you are not hurrying to register your property, wait for the new guidance values to be announced. Some buyers hope that the government will rationalise the guidance values and bring them closer to the market value. Making the registration process more fair and transparent. This will also reduce the gap between the guidance and market values, which often leads to confusion and litigation.
Whatever you decide, research and compare the prices of different properties in different areas before buying. You can also consult a professional property consultant or agent. To guide you through the process and help you find the best deal.