What is Guidance Value
Guidance value is a price which government decides for a location, a buyer cant buy a property below this value.
There are two types of guidance values for a property
Land value
The value for the land as fixed by the Government, I.e the site value
Composite Value
The value of the building as well as the land
How is a guidance value determined?
There are 3 factors to be considered before attaining a value for guidance
Locality
Locality plays a major role in determining the guidance value. The social infrastructure around the location is the major contributor in determining the value. Upcoming projects, ranging from affordable, villas, luxury etc also determines the guidance value. An area like my sore road will have more margin because of the location advantage. Buying an apartments in mysore road is the best choice in terms of locality.
Amenities
Amenities are categorized into 12 different types ranging from
1. Community Hall Club House, Conference Hall, Party Hall, Card room, reading room, Library, Banquet Hall, Party area, Party lawn
2. Jogging Track / Running/ Cycling/ Walking/ Pebble
3. Play Areas Children play area, Children game area, Garden, Water body, Decorative pool, Plantation garden.
4. Social Infra Canteen, Mall, Commercial space, ATM, Bank, Hopcoms, Janatha, Nandhini Milk Outlet, Provision Store Parlor, cafeteria, super market, plaza & similar types of amenities.
5. Indoor games All types of indoor game area, squash, snooker, table tennis, carom room, indoor games area
6. Swimming pool indoor, Kids pool, Wading pool, Aqua gym
7. Lift Cargo lift, Elevator, mechanical lift for car park, high speed elevator
8. Surveillance and security of common area, manned security with video surveillance intelligent security, motion sensor based lighting multi camera security, CC TV, gated community, intercom, Wi-Fi, internet Parlour, video conference facility, generator, UPS, Kiosk, visitor tracking system
9. Helipad & golf field.
10. Cinemas Outdoor amphitheatre, open air theatre, open stage
11. Health Centres Health Clinic, Ayurvedic parlour, massage parlour, beauty parlour, spa, aerobics, yoga mediation, unisex parlour, steam & sauna Jacuzzi, Gym, day care centre, health club
12. Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas bank, gas detector.
An addition of in price is applied on the base price for determining the guidance value as follows
3 or fewer groups – No additional enhancement
4 groups – 0.75%
5 groups – 1.50%
6 groups – 2.25%
7 groups – 3.00%
8 groups – 3.75%
9 groups – 4.50%
10 groups – 5.25%
11 or more groups – 7.50%
The values also vary slightly depending on the wall structure and flooring used; mosaic, ceramic, vitrified, marble and granite flooring.
Number of floors and parking
Builder charges Premium price for the for higher floors, the Dept of Stamps accords a higher value for floors above 5. Up to 5 floors there is no extra charges are required. But from the 6th floor onward, you are subjected to a certain % of extra charge according to the values given below
6th floor -0.5%
7th floor -1.0%
8th floor -1.5%
9th floor -2.0%
10th floor -2.5%
11th floor -3.0%
12th floor -3.5%
13th floor -4.0%
14th floor -4.5%
15th floor and above -5.0%
Car parking value
The guidance value for the property will be determined by the parking value too For a property value up to 50 lakhs the parking charges will be 3%,
For a property value of 50 lakhs to 1 Cr. the parking charges will be 2%,
For a property value of 1 Cr. to 1.5 Cr. The parking charges will be 3.5%
Conclusion
Right price to invest and right value are the key for a successful investment. This guidance value calculation will help you to acquire knowledge for making a decision.