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| REAL ESTATE TERMS |
Investing in a property or buying the property is not just walking through the door of a daily essentials shop. While buying or investing in property one has to spare a pile of money. This investment is more or less permanent and is not reversible. It’s not an everyday affair where you invest and re-invest in property. Before investing one must take care of the basic terms used in real estate. It is important for the regular investors as well as for the first time investors to familiarise themselves with the terminologies of real estate. To gain a better understanding of the same, following terms would be helpful to look into;
1. Carpet Area:
1.)
An area where you can move and lay your carpet,
I.e. the area between the walls of the house. It consists of the rooms,
washrooms, kitchen, balcony, terrace and any other additional room included
within the house. The lift, stairs or lobby are not included in this area.
Bu 2. Built-up Area & Super Built-up Area:
1.)
built-up area is an area that includes the
entire peripheral area of the property, which is the thickness of the walls
both internal and external, the carpet area and so forth. A super built-up area
is the area that covers the lobby, lift and stairs as well. In the apartments
the super built-up area is divided correlatively among the flat owners.
3. Per Square Foot Rate :
1.) The deciding unit for the price of a property while selling or purchasing it is the square foot, therefore the term per square foot rate. Plots of land and bungalows are easily measurable in square foot area but the flats’ price is determined by the super built-up area.
4. Floor Space Index:
1.)
It is the ratio of the total built-up area and
the actual plot area that is being permitted by the government. As high the
Floor Space Index the larger would be the built-up area. Before the sales deed
is finalised, the developer is liable to produce the Floor Space Index to the
buyer.
5. Buyer’s Agent & Listing Agent:
1.)
Another name for buyer’s agent is real estate agent.
This agent is out for your help while you search for an ideal house for
yourself. The real estate agent does all the work of finding a suitable and
compatible property for you and in return you pay a percentage of the sale fee
to the buyer’s agent.
On the other hand, a listing agent is the one
who represents the seller of a particular house, hence they are in charge of
selling the house. In modern times, a listing agent could be available online
via chats or through portals, where, they can list the available houses for
sale.
6 . Freehold Property :
7. Home Loan & Loan Term:
1.)
Home loan is a kind of loan offered by banks,
non-banking financial institutions and housing finance co-operations as well as
the online money lenders to the buyers who wish to purchase the property but
lack a sufficient amount of money for the same. An individual applying for the
home loan needs to repay the same within the time span of 5 to 30 years
depending on their capability to repay the same.
On the other hand, loan term is the duration
in which you plan to pay the EMIs. Opting for a shorter duration may lead one to
pay a higher amount as EMI and longer duration of the same may lead to lesser
amount of EMI. The benefit of a short-term EMI is that the interest would be
charged less on the same but on the other hand, the long-term EMI leads to
increased rate of interest.
