Skip to main content

How big a House do I want?

 

How big a house do I want

After deciding to buy a house for yourself, you come across with the problem related to the size of house. The problem emerges due to lack of proper understanding of various concepts over property area. Here we have tried to make your understanding clear on these property area concepts, which may help you in deciding the size of the house you are planning to buy.

 

'Carpet Area' refers to the total usable area within the four walls of dwelling unit. In other words, it is the area on which a carpet can be laid if required by the owners. The stamp duty is payable based on the carpet area.

'Plinth Area' refers to the entire carpet area along with the thickness of the external walls of the apartment. It obviously includes the thickness of the internal walls and the columns, if any, lying within the four walls of an apartment.

'Built-up Area' refers to the sum of actual area available for living with wall thickness and demarked common area.

'Super Built-up Area' refers to the plinth area of an apartment as added by the balconies and other common areas like corridors, staircase, lift room, motor room, security room, meeting hall, gymnasium and area reserved for indoor games, if any. 
The super built-up area includes the carpet and built-up area of the apartment and its proportionate share in the common spaces of the building, like lobby, staircase and elevator. In some cases, the terrace is also included in this. The total area of all these is divided by the number of apartments in proportion to the size to calculate the Super Built-up Area.

This break up is extremely essential as builders can place anywhere from 60 per cent to 80 per cent of the super built area as carpet area. That means, if the sale price is quoted on 2,000 sq ft, the carpet area could be anywhere from just 1,200 sq ft to 1,600 sq ft. If this break-up is not mentioned in the agreement, demand that the builder mentions it in the sale deed.

Bureau of Indian Standards (BIS) defines various important terms like plinth area, carpet area, rentable area, balcony, stair cover (mumty), loft and porch. It stipulates that the areas of basement, floor without cladding, floors including top floor which may be partly covered, mezzanine floor, and garage shall be measured separately.

Apart from plinth and carpet areas, the Standard also gives the method of measurement of rentable areas for residential and non-residential buildings by adding certain areas to the carpet area. It mentions the areas to be included and excluded while working out the rentable areas. Architects, engineers, contractors, builders, developers, promoters and all others concerned should adopt/implement this Indian Standard for uniform implementation of the standard method of measurement of areas of buildings, especially in the interest of common consumer.
What is sold and how? 
Generally, the area that is sold to a prospective purchaser of a residential flat in a society is the super built-up area. The prospective purchaser not only purchases the plinth area along with the balconies but also purchases a proportionate share in the common areas as mentioned above. While selling a residential apartment, the super built-up area is sold along with the proportionate undivided share, right, title and interest in the land on which the residential apartment building has been constructed.

The undivided share of land pertaining to a residential apartment is generally arrived at by the formula i.e., the super built-up area of the apartment as divided by the total super built-up area in the building, which in turn is multiplied, by the total land area. For e.g., if the land area is say 4,000 sq. ft, the total super built-up area is 8,000 sq. ft and the super built-up area of the apartment concerned is 2, 000 sq. ft, the undivided share of land pertaining to the apartment will be 2000 divided by 8000 and multiplied by 4000 which is equal to 1000 sq. ft.

Precautions while buying

While purchasing a house/flat, keep an eye out for its carpet area. These days, the prices of most newly constructed houses are worked out on the basis of the super built-up area. Even though you may pay for a flat on the basis of the super built-up area, it is the carpet area that you actually use, so ask your builder that how much carpet area you are getting.

 

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...

What are the factors affect the changes in Interest Rate of Fixed Deposits?

  What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India   - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession   - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

Capital Protection Oriented Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Capital Protection Oriented Funds   Erosion of capital is one of the key concerns for investors wanting to invest in equity mutual funds. To address this concern, asset management companies have launched Capital Protection Oriented Funds (CPOFs). What are CPOFs? CPOFs are generally three to five-year, closed-ended funds where 70-80% of the portfolio is invested in fixed income securities, which mature on or before the scheme's tenure. The investment in fixed income securities grows to 100% at the end of the tenure, providing the investor with capital protection. The remaining portion (20-30%) is used to take exposure to equity, which provides the upside. Exposure to equities is either by directly buying equity stocks (plain vanilla CPOFs) or by b...

Mutual Fund Review: ING Dividend Yield

  ING Dividend Yield's small assets enable the fund manager to churn in impressive returns… Strategy The aim of the fund is to invest in stocks which offer a high dividend yield. This fund deploys a value based strategy which aims to gain from investing in fundamentally strong and free cash flow generating businesses. The scheme focuses not only on growth but also on the cash generated by the business, which mostly leads to stable returns even in volatile markets. This fund has a low volatility because of its investment in high yielding stocks. The scheme tries to include stocks that yield dividend above the dividend yield of the Nifty and stocks with liquidity, which throws up a universe of 150 stocks.   Our View Launched in October 2005, this fund invests at least 65 per cent of its assets in high dividend yield stocks. The fund has consistently maintained a mix of stocks across varying market capitalisation, with a higher tilt to mid caps compared to small caps. Howev...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now