Introduction to Property Buying

10 real estate terminologies you should be aware of

10 real estate terminologies you should be aware of

Purchasing a property is among the most significant investments that you can make in your lifetime. A house can be purchased either for living with your loved ones or as a form of investment in real estate. For most buyers, owning a house is nothing short of a dream-come-true, for this permanent asset can be used not only by the existing buyers and their families, but also by their future generations. If you have not yet fulfilled your dream of becoming a proud homeowner, and are looking for the best housing loan to realize your dream, you should make wise decisions, such as selecting a trusted financial company. Alongside, you must also be aware of the crucial real estate terminologies. Here’s a look at the 10 real estate basic terms that you should be aware of:

Carpet area :

As the name suggests, carpet area means that part of the residential property that you can use to lay carpet or move around freely. This area comprises the area within the walls as well as the area provided for the balcony. In other words, it is the space between both the external and internal walls that can be used for carpeting. Remember, the carpet area also includes the area provided for your private terrace.

Built-up area :

This area is equal to the square inch of the house, and includes the external and internal walls along with the carpet area comprising the balcony and private terrace. The built-up area encompasses the entire periphery of the residential property. It is also referred to as the plinth area.

Super built-up area :

The super built-up area is equivalent to the entire extent of the residential property. It includes the other usable areas of the house, like corridors, lifts, lobbies, stairs etc. This area is divided in equal proportions among all flat owners within the residential building/apartment complex.

Per square foot rate :

Builders use the per square foot rate as a unit of measure to provide the selling price of a flat to a buyer. Also known as saleable area, the per square foot rate includes the carpet area along with the super built-up area.

Floor Space Index (FSI) :

The Floor Space Index is expressed as a ratio between the aggregate built-up area and the actual plot area actually permitted by the government for building the residential structure/property. A high FSI means a corresponding increase in the build-up area. Conversely, flats with lower FSIs have a smaller build-up area.

Certificate of occupancy :

The local municipal corporations issue certificates of occupancy to eligible house owners. Once a certificate of occupancy has been issued, it means that the building is compliant with the rules and regulations, including the local laws and the established construction plans as per the rules.

RERA :

The Real Estate (Regulation and Development) Act, 2016 or the RERA Act provides for Real Estate Regulatory Authority (RERA) committees across the country to protect the interest of buyers purchasing homes along with providing a mechanism to boost investments in the real estate sector. RERA aims to promote uniformity and transparency in the real estate sector through a regulatory framework. Along with penalizing builders for delay in projects, the RERA rules specify that builders can only charge the buyers on the basis of the carpet area. Alongside, builders are required to disclose complete information pertaining to the project on RERA’s website. As per the RERA Act, builders cannot take more than 10% advance from homebuyers. By 2019, 30 states and Union Territories in the country had notified the RERA rules. If you are looking to buy a house, you must consider choosing a RERA-registered property.

Home Loan :

You can take a home loan to fund the requirements of purchasing a house. Once you fulfil the eligibility conditions and submit the requisite documents, you can avail the best housing loan to purchase your dream house. You can use a home loan to buy a plot for construction of a house, or buy a property either already constructed or under construction. Such loans can also be used for further construction/enhancement/ extension of an existing property. The repayment of home loans is done through EMIs as per the selected tenure.

Credit Score :

Before approving your home loan application, financial institutions will analyse your credit score. It is a three-digit figure, reflecting your creditworthiness. A credit score of 700 and above is considered good, and can help you get the best housing loan at attractive rates of interest.

Conclusion :

After knowing about these important real estate terminologies, you are all set for availing the best housing loan. You can zero in on Hero Housing Finance, and get access to multiple benefits, like repayment tenure of up to 30 years, up to 90% Loan to Value ratio for loan amounts, balance transfer facility, provision for loan top-up, and so on.

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