The New Year, for home buyers, is not bringing in happy news. According to realty sources, the ready reckoner rates that are published on January 1 every year, have been increasedby 0-25 per cent across the city and suburbs.
In other words, for every purchase, homebuyers will now have to pay a higher amount for stamp duty, as compared to last year. Apart from this, they will also have to shell out more from their pockets, as the builders will now pay a premium to the Brihanmumbai Municipal Corporation (BMC) for buying Floor Space Index (FSI).
As the ready reckoner rates will go up, so will the premium, which the builders will now charge from the homebuyers. Advocate Vinod Sampat, who has been tracking the ready reckoner rates for many years, told SUNDAY MiD DAY, “Though there aren’t specific details available, but people from the stamp duty and registrar office say that the ready reckoner rates may vary from 0-25 per cent in the city and suburbs.”
The rates in extended suburbs of Mumbai, such as Kalyan, Panvel, Thane and others, have gone up in the last one year. “While the rates in Bandra have gone up by 10-15 per cent, rates in Kalyan have gone up by nearly 40 per cent in the ready reckoner. However, the truth is that the prices are high and there are no actual sales,” said Prakash Rohera of Kkarma realtors.
Rohera further added, “The builders now pay the BMC for FSI on the basis of ready reckoner rates. With the rates going high, builders will shell out more and they would charge the buyers, the same. This means the buyers will pay more next year.”
For every purchase, the buyer has to pay five per cent of stamp duty on the total value of the flat and the rates are decided as per ready reckoner. While the reckoner rates have always been a worry for realtors, real estate expert, Dr Sanjay Chaturvedi, claims that it’s high time that stamp duty is be abolished. “The ready reckoner rates are not in sync with the actual rates. The market has been stagnant.
Our observation of the market shows that the prices have remained stagnant, but still the ready reckoner rates are on their way up. This is why the stamp duty should be abolished,” said Chaturvedi.