Investing in apartments can be one of the best and wisest decisions you can make.
Although it is rewarding to get an apartment, it does come with a lot of research work. You need to be wise enough to make sure that you know about various entities in investing in an apartment. This blog has a list of housing terms you should know before you can move ahead and make that investment in an apartment in Chennai. Go through the blog to get clarity on the same.
Here Are The 12 Housing Terms you should know
1. Appreciation value
Appreciation value refers to the fact that the value of a property will continue to grow or
elevate over the years. There are numerous factors like location of the property, inflation and much more that contribute to a good appreciation value.
2. Property tax
Property tax is the tax levied upon the owner of a property by the local and state government for giving the owners the sole right to own the property within their jurisdiction.
3. Undivided share (UDS)
Undivided share refers to the part of the land owned or booked by the buyer of the apartment space in a complex. Each buyer owns an undivided share of the apartment.
4. Carpet Area
The carpet area is referred to the floor area of the apartment that is being made use of by the residents exclusively. Areas such as common balconies, verandahs, staircases and more are excluded from the carpet area.
5. Real Estate Regulatory Authority (RERA)
RERA is one of the important housing terms you should know. RERA, or the real estate regulation and development act, makes sure that it safeguards the buyer’s rights by ensuring transparency and credibility of apartments under construction.
6. Encumbrance certificate
An encumbrance certificate is a certificate that is issued by registrar department to ensure that the property is free from all monetary dues and legal litigations. It also clears the property of the ownership that it withholds.
7. Sale deed
The sale deed marks the transfer of rights of the property from the owner to the buyer. It also marks the date of sale and the terms of the sale. Sale deeds mark the transfer of the ownership after the seller has bought the property.
8. Floor space index (FSI)
The floor space index is the floor area that can be made use of for construction purposes. The floor space index is calculated by dividing the total area of the building by the total area of the plot. The Floor space index is not a constant entity, and it differs from each administration according to its requirements. This is a notable housing term you should know.
9. Maintenance charges
It is the charges levied upon the residents of an apartment for maintenance of the common areas and other facilities in a complex.
10. Credit score
A credit score refers to the eligibility to avail of a home loan. A credit score depends on the financial situation of the borrowers, their credit history, repayment history and numerous other factors.
11. EMI
Knowing about EMI comes in handy if you will be availing loan from a bank for getting an apartment. EMI, or the equated monthly instalment, is the monthly payment made by the borrower to the bank. EMI is carried out with principal and interest.
12. Power of attorney
Power of attorney is the document stating the power of authorization given to a credible person to act on behalf of the owner in a legal manner in case of uncertainties. This is one of the notable housing terms that you need to know.
To Invest in the Best Apartments in Chennai, Reach Out to Fomra. Why Choose Fomra?
- Fomra Housing are the leading apartment builder in Chennai and has future-ready apartments and is the best place to invest in an apartment in Chennai.
- Fomra Hues, Porur offers a wide range of 2BHK/3BHK smart homes with superior home automation facilities.
- To make the right investment for now and future, Fomra is the right choice.
If you are planning to invest in an apartment, then go through the above blog to know more about the housing terms you should know. This will provide you with better clarity on the real estate market and will help you make the right decision. If you have any suggestions or queries, let us know in the comments below.