HYDERABAD: Want to buy a piece of land or a flat? You will have to shell out more money for registration in the coming days. The Cabinet sub-committee on resource mobilisation headed by Finance Minister T Harish Rao, which met here on Tuesday, decided to recommend to the government to increase land values and the registration fee. The government is likely to take a decision on this shortly.
However, how much burden property buyers will have to bear is not clear at the moment. It depends on the location of the property that the citizens want to buy. For example, the government value of agriculture land may vary for land in the remote Jayashankar Bhupalpally district to that in prime localities like Rangareddy or Suryapet district. In addition to this, the increase in land values will not be uniform.
The hike may be between 20 to 50 per cent, depending on the location of the land or flat. If the stamp duty is six per cent and the government value of the property is Rs 20 lakh, the amount to be paid to the Registration Department will be six per cent of Rs 20 lakh. If the value of the property is doubled, then buyers have to pay six per cent of the stamp duty on Rs 40 lakh.
However, buyers will have an advantage too. If the values of the properties are increased, they could get more loan from the bank based on the upward increase in property values. It may be mentioned here that the values of lands and stamp duty had not been increased since the formation of the State in 2014, whereas the AP government has enhanced the value seven times.
Speaking to Express, CREDAI (Confederation of Real Estate Developers Associations of India) vice-president G Ram Reddy said increasing the land values was a move in the right direction. He, however, made some suggestions regarding the revision of prices to the government.