Announcement

Collapse
No announcement yet.

Maintenance Charges in Bigger Complexes, Mumbai

Collapse
X
Collapse

Maintenance Charges in Bigger Complexes, Mumbai

Last updated: April 13 2013
10 | Posts
9035 | Views
  • Time
  • Show
Clear All
new posts

  • Maintenance Charges in Bigger Complexes, Mumbai

    Hi,
    Wanted to check how justifiable are the maintenance charges in bigger complexes with all the amenities.
    Most of the builders these days quote Rs 7 PSF as maintenance charge for the complex with all amenities. Is it really that high over a period of time or does it gradually slide downwards ?

    For example

    There is a complex of 10 towers (25 storeys , 4 flats per building ,all 2 bhks with a average sq feet size of 1000 sq ft.)

    10x25x4 = 1000 flats.
    1000 flats x Rs7000 ( per flat as monthly maintenance) = 70 lacs.

    Isn't that amount too big on a monthly basis considering all the amenities.

    Few more questions
    Does the maintenance increase with higher floors ?
    Is some kind of property tax included in this tax ? If yes , what is it and how is it calculated ?
    Is property tax higher in newer buildings ?
  • #2

    #2

    Re : Maintenance Charges in Bigger Complexes, Mumbai

    Maintenance is high for complexes.. As long as the builder provides it it is higher... and can be lowered once the society is formed..
    In your example it depends on the builder how he charges.. 7 Rs maintenance can include property tax (5+2).. 2 being property tax..
    This is another big rip off... Builders collect this money, but property tax is paid annually and after the OC is obtained and BMC does an assessment..
    Your Property tax amount till then lies with the builder. BMC fixes the amount.. say 2.20 psf.. and then builder collects the difference from the flat holders.. and if BMC fixes fixes it less, he will adjust it against future maintenance..
    However a huge portion of the money lies with the builder and this process is time consuming.. This is especially for large complexes.. when the assessment is done only after the entire complex is complete.. so till then you are at the mercy of the builder.. so you might get an partial OC and occupy your tower and you can continue to get fleeced for the maintenance till all the towers are built...

    Now to the other question.. do we spend so much.. probably yes.. but you can get probably get better quality for the money spent.. Corruption is not exclusive to Public sector and government.. Even here the small time private contractors, bribe the builders guy to get contracts of house keeping, security.. or he gives a discount to the builder that does not get passed on the residents..

    Builders do not want to exit as they do not want to lose this important stream of revenue.. However said that, some builders also want to keep the maintenance is hand to keep up the image.. as society might want to cut off frills that does not make sense, but is important for the builder brand..

    -------------




    Originally posted by Metallica View Post
    Hi,
    Wanted to check how justifiable are the maintenance charges in bigger complexes with all the amenities.
    Most of the builders these days quote Rs 7 PSF as maintenance charge for the complex with all amenities. Is it really that high over a period of time or does it gradually slide downwards ?

    For example

    There is a complex of 10 towers (25 storeys , 4 flats per building ,all 2 bhks with a average sq feet size of 1000 sq ft.)

    10x25x4 = 1000 flats.
    1000 flats x Rs7000 ( per flat as monthly maintenance) = 70 lacs.

    Isn't that amount too big on a monthly basis considering all the amenities.

    Few more questions
    Does the maintenance increase with higher floors ?
    Is some kind of property tax included in this tax ? If yes , what is it and how is it calculated ?
    Is property tax higher in newer buildings ?

    Comment

    • #3

      #3

      Re : Maintenance Charges in Bigger Complexes, Mumbai

      I think Rs. 7 psf is actually quite reasonable for a complex with extensive amenities.

      I have heard of developers / societies charging upwards of Rs. 15 psf for some premium complexes with all amenities....

      Comment

      • #4

        #4

        Re : Maintenance Charges in Bigger Complexes, Mumbai

        But does it cost that much ? How much would maintaining a swimming pool club house , security and power back up cost ? Not 70 Lakhs a month right ? So was wondering what do they give in 15 rs psf

        Comment

        • #5

          #5

          Re : Maintenance Charges in Bigger Complexes, Mumbai

          This is nothing but another revenue stream for already over fed fat builders. I am aware of a high end society building in Chennai with just 40 apartments in the heart of the city. Each apartment is of the size of about 3000 sq ft. The society has all ameneties including club house, Swimming pool, Tennis Court , Reverse Osmosis water treatment plant , diesel generator sets providing power to apartments excluding AC and other heavy duty equipment during the daily scheduled 2 hours load shedding ( Load shedding may not be permanent but currently prevailing ) apart from electricity for common ameneties etc. Still the sociecty charges ( run by the members and not by the builder) are only Rs 3 per sq ft. Property taxes are excluded and are very nominal in Chennai compared to Mumbai.

          In Mumbai poor consumers do not raise any questions when it come to property maintenance charges or even property taxes and meekly pay whatever is demanded by builders / corporation. This is like an annuity income for builders who put clauses in the agreement that the members of the society will entrust maintenance to builders for the first 5 or 10 years in the name of keeping building maintenance at high standards.


          High standard of maintenance can be done given the scale of many societies in Mumbai at a fraction of the cost currently charged by many builders .

          Originally posted by Metallica View Post
          But does it cost that much ? How much would maintaining a swimming pool club house , security and power back up cost ? Not 70 Lakhs a month right ? So was wondering what do they give in 15 rs psf

          Comment

          • #6

            #6

            Re : Maintenance Charges in Bigger Complexes, Mumbai

            Thanks for all the valuable inputs......
            Can some one from Bombay share his experience

            Comment

            • #7

              #7

              Re : Maintenance Charges in Bigger Complexes, Mumbai

              Originally posted by Metallica View Post
              But does it cost that much ? How much would maintaining a swimming pool club house , security and power back up cost ? Not 70 Lakhs a month right ? So was wondering what do they give in 15 rs psf
              Dunno the fact, but my hypothesis is that most of the this cost is attributed to the use of water tankers instead of builder's confidence in obtaining OC and therefore getting municipal water....the projects having OC, even with all amenities, do not have maintenance charges of more than Rs 3-4 psf

              Comment

              • #8

                #8

                Re : Maintenance Charges in Bigger Complexes, Mumbai

                Lodha Splendora GB road works out Rs 10 psft as maintenance charge per month
                Lodha NCP works our Rs 15 psft

                these are the prices tentative - on posession expect them to go up.

                Hence, for a project with all amenities etc - i think u shud be ready to shell out maintenance in the range of Rs. 10 to 15 per month.

                Please budget with 20% increase each passing year...

                Comment

                • #9

                  #9

                  Re : Maintenance Charges in Bigger Complexes, Mumbai

                  I don't think the issue is whether maintenance charges are high or low but it is actually whether the quality of maintenance and other services is good or not.

                  If maintenance and services are good it will reflect in price appreciation that you will get on your investment. I am much happier to pay Rs. 10 psf for high quality services rather than paying Rs. 5 psf for poor quality services.

                  Also, remember that maintenance amount is not only for the monthly expenses that are incurred by the society but also to create a sinking fund for long term and unplanned expenses like:
                  1. Exterior painting every 5 years or so.
                  2. Waterproofing if and when required.
                  3. Water management initiatives.
                  4. Replacement / Upgradation of lifts, etc
                  5. Ongoing repairs and maintenance expenses that are unpredictable but keep on coming up.

                  Comment

                  • #10

                    #10

                    Re : Maintenance Charges in Bigger Complexes, Mumbai

                    Ya I know abt the sinking fund, it's good for future but I am sure the fund will be huge with 7-10 psf over a period of time.
                    Regarding lodha, it is in line with what other builders ask upfront, but somehow I am still not satisfied. In my view it shld start coming down ver a period of time as the corpus becomes big in size.

                    Still waiting for some concrete reply from a end user who is shelling out 7-10 psf.

                    Comment

                    Have any questions or thoughts about this?
                    Working...
                    X