Keep finances for stamp duty while buying property

Buying a property requires a financial discipline and non-planning your finances can often lead to trouble when making any property purchase. Many first time buyers often think that since a home loan is easily available they would not have to plan their finances when it comes to buying a property. On the contrary real estate experts at property.sulekha.com and other portals always suggest potential home buyers to keep funds at hand for home loan down payment and stamp duty charges.

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Understanding stamp duty charges: Stamp duty charges are charges which you need to pay to the respective state government at the time of getting your property registered. The costs for stamp duty charges are not covered in any bank housing loan although some non banking financial companies do offer a cover for stamp duty and registration charges. So unless specifically mentioned by your housing loan in writing consider stamp duty charges as separate from your housing loan cover.

Stamp duty registration charges depend on the cost of your property and the prevalent stamp duty rate in the state. It can vary from 1 to 6% of the property cost depending on the state concerned. The best way to make sure you have adequate funds to manage for the stamp duty and registration charges is to seek help of a property stamp duty calculator. With such an online calculator you can know details of how much will be the stamp duty and registration charges when you plan to register your property with the government.

Depending on the final cost of your property you will have to save money for initial down payment before you can get the home loan as well as stamp duty and registration charges. This means that if you do not have adequate funds even with a home loan approval in place you will not be able to make a purchase for your desired property. A property stamp duty calculator will give you exact idea on how much money you will need to save depending on the location of the property, its cost and the prevalent stamp duty rates for your desired city circle. What’s more most well-known property portals and marketplaces offer stamp duty calculator free of charge to help you ascertain the details of money you will need before making up your mind to buy a property.