A buyer in Hennur had budgeted carefully for a 90 lakh flat, with the down payment saved and the loan sanctioned. What she had not budgeted for was the second wave of costs that arrived over the following months, stamp duty and registration, GST on the under construction flat, a clutch of builder charges, connection deposits, a maintenance corpus, and then the small matter of making an empty shell livable. By the time she moved in, the real outlay was well past a crore. None of it was a scam. It was simply the true cost of buying, made up of many separate charges, which this guide sets out in full so you can plan for all of it well before you sign.

The short answer. The price on the brochure is only the beginning. Once you add statutory charges, builder levies, move in deposits, and interiors, the true cost of buying a home in Bengaluru commonly runs 20 to 30 percent above the base price. The trade off is planning versus shock. A buyer who maps every one of these costs in advance keeps control of the budget, while one who plans only for the sticker and the down payment can be left scrambling for lakhs at exactly the wrong moments.

Why is the true cost higher than the price?

Because a home purchase carries several layers of cost that the advertised rate never shows. On top of the base price sit government charges, charges the builder adds, one time costs at possession, and the money to actually furnish and occupy the home. Industry guides consistently note that these extras add roughly 20 to 30 percent over the base, as this overview of hidden costs describes. The point is not that any single charge is unfair, but that they arrive in waves, and a buyer who has planned only for the flat price and the loan is repeatedly caught out. Mapping the full picture upfront turns a series of unpleasant surprises into a single, manageable budget.

What are the statutory charges?

The statutory charges are the government's cut, and they are substantial. In Karnataka, stamp duty runs by slab at 2 percent below 20 lakh, 3 percent between 20 and 45 lakh, and 5 percent above 45 lakh, with a registration fee of 2 percent, revised up from 1 percent in August 2025, plus cess and surcharge, all charged on the higher of the guidance value or the price. Our Karnataka stamp duty guide details these. On an under construction flat you also pay GST, at 5 percent for a normal home or 1 percent for an affordable one, while a ready flat with an occupancy certificate attracts none. And on a property of 50 lakh or more, you deduct 1 percent TDS. These alone can add close to 8 percent, or more with GST, before any builder charge. It is worth being precise about the base these percentages apply to, because stamp duty and registration are charged on the higher of the guidance value or your sale price, not necessarily the number you negotiated. If the guidance value for the locality sits above your price, the statutory charges are worked out on that higher figure, so a buyer who assumes the duty is a flat percentage of the deal can under budget. Look up the guidance value for the specific property before you finalise your estimate, so the statutory line in your budget is based on the figure the government will actually use.

What builder extras add to the bill?

Beyond the base rate, the builder's cost sheet carries several premiums. These typically include a preferential location charge for a better facing or corner unit, floor rise for higher floors, a separate charge for a parking slot, and a one time clubhouse or amenity fee, along with power backup and infrastructure charges. Individually modest, together they can add several lakh to the price, and on an under construction flat each also attracts its own GST when bundled into the agreement value. Our guide to reading a builder cost sheet breaks these down and flags which are negotiable. The habit that protects you is to get the full cost sheet early and treat every add on as a line to understand, and where possible to negotiate.

What move-in and setup costs come at possession?

A fresh set of costs lands around possession, and buyers routinely forget these. Expect connection deposits for electricity through BESCOM and water through BWSSB, a khata transfer charge to move the municipal record into your name, which in Karnataka is about 2 percent of the stamp duty paid, a legal or documentation fee, and often an advance maintenance deposit and a corpus fund collected for the residents association. If your purchase is financed, your lender also charges a loan processing fee. None of these is large on its own, but together they can add another lakh or two just as your savings are already stretched by the down payment and statutory charges. Listing them in advance is the only way to avoid a cash crunch at the finish line. The timing is what makes these dangerous. They cluster in the same few weeks as your final payment to the builder and your registration charges, so even a buyer who has budgeted the totals can be caught by having to pay them all at once. A simple cash flow sheet, mapping which cost falls in which month around possession, is worth an hour of your time and can save a frantic scramble for funds when several demands land together.

What about interiors and brokerage?

The last two costs are the ones that most often blow a budget. Many flats are handed over as a bare or semi finished shell, and turning that into a home, with flooring, wardrobes, a modular kitchen, lighting and fittings, can cost anywhere from a few lakh to twenty or thirty lakh or more depending on your choices, and this spend carries no tax benefit. Where a broker is involved, a brokerage, often around 1 to 2 percent of the price plus GST, may also apply. Because interiors in particular are so variable, decide your fit out budget deliberately rather than letting it expand after possession, when the temptation to spend a little more on each room quietly compounds into a large number.

Does the true cost differ for ready versus under construction?

Yes, and the difference is larger than most buyers expect. An under construction flat carries GST of 5 percent, or 1 percent if affordable, on the agreement value, while a ready flat with an occupancy certificate carries none, which alone can swing the comparison by several lakh. On the other hand, an under construction purchase spreads its payments over the build, which can ease cash flow, and it may come at a lower per square foot rate. A ready flat lets you see exactly what you are buying and move in without a waiting period, but you pay the whole cost sooner. Neither is automatically cheaper once you count everything, so when you compare a ready home against an under construction one, build the full true cost for each rather than comparing headline prices. The GST line in particular can quietly close, or open, a gap that the per square foot rate suggested. The table below groups the costs so you can total them for whichever option you are weighing.

Use this seven step order to budget the true cost of your home.

1. Start from the base price on the full written cost sheet, not the advertised rate.
2. Add stamp duty, registration, and GST if the flat is under construction.
3. Add the builder extras such as parking, floor rise, and clubhouse charges.
4. Add move-in deposits, khata transfer, legal fee, corpus, and loan processing fee.
5. Set a firm interiors budget for a bare or semi finished flat.
6. Include brokerage plus GST where an agent is involved.
7. Keep a contingency, since a real purchase almost always throws up one more cost.

How much extra should I budget beyond the flat price?

Plan for roughly 20 to 30 percent above the base price. Statutory charges of around 8 percent or more, builder extras, move-in deposits, and interiors together push the true cost well above the sticker. The exact figure depends on your flat and your choices, so build your own line by line estimate.

Which costs come at possession rather than at booking?

Move-in costs cluster around possession. These include electricity and water connection deposits, the khata transfer charge, a legal fee, and often an advance maintenance deposit and corpus fund for the residents association. Interiors also come after handover, so list these in advance to avoid a cash crunch.

Do I pay GST and stamp duty both?

On an under construction flat, yes. GST of 5 percent, or 1 percent for affordable housing, is paid to the builder, while stamp duty and registration are separate state charges paid at registration. A ready flat with an occupancy certificate attracts no GST, but stamp duty and registration still apply.

Are interior costs part of my home loan?

Usually not, and they carry no tax benefit as part of the property cost. A bare or semi finished flat needs flooring, a kitchen, wardrobes and fittings, which can run from a few lakh to several times that, and this is generally funded from your own savings rather than the home loan. Set a deliberate budget for it.

Charges and rates vary by property and change over time, so confirm the current statutory rates on the official portals, get the full written cost sheet from your builder, and build your own line by line estimate before you commit. This guide is buyer education and not financial advice.

Last updated 2026-08-25. PropNewz Team.