A residential apartment is an autonomous housing unit that consists of bed rooms, living rooms, kitchen, bath rooms, etc. It occupies only a part of a building. Apartments may be owned by an owner or by rented tenants. In commonwealth countries, the term ‘flat’ is used to describe apartments.
Apartments can be broadly divided on the basis of size as follows:
- Studio apartments / efficiency/ bed sit / bachelor or bachelorette style apartments – are the smallest size apartments, designed especially for rent purpose. Such an apartment generally consists of a large room which is the combined dining, living and bed room. Even the kitchen facility is combined in these apartments barring the bathrooms. Bachelor or efficiency style apartments are at times smaller than studio apartments.
- One bed room apartments are those in which one bed room is separated from the rest of the apartment. Similarly there are two bed room sets, three bed room sets etc. Small apartments have only one entrance unlike large apartments which may have more than a single entrance.
- A garden apartment has some characteristics of a town house with each apartment having its own entrance and separate apartments are not placed vertically over one another. However, a garden apartment is usually one storey and never more than two stories. Some garden apartment buildings place a one-car garage under each apartment with pedestrian entrance from a common courtyard. The grounds are landscaped compared to other modestly scaled apartment.
Some important points to keep in mind while buying a residential apartment are:
- Locality – Proximity to workplace, educational institutions, hospitals, shopping areas, entertainment center, transportation, pollution levels.
- Quoted area of the flat i.e. Carpet, Built Up Area and Super Built Up Area
- Car parking space
- Quality of construction
- Reputation of the builder or seller
- Sufficient water and electric supply and other utilities
- Cost components like price, stamp duty, registration charges, transfer fees, maintenance charges and other payments
- Appreciation of the property for resale and rental
- Other distinguishing features or advantages of the property
Commercial property includes office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.
Carpet Area is the area enclosed within the walls, actual area to lay the carpet.
Carpet Area is the total usable area enclosed within the four walls of an apartment or commercial space. It refers to the actual area over which a carpet can be laid if required by the owners. It does not include the thickness of the inner walls.
Built-Up Area is the carpet area plus the thickness of outer walls and the balcony.
Super Built – Up Area is the built up area in addition to the proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners make up the Super Built-Up area. At times it may also include the common areas such, swimming pool, garden, clubhouse, etc. The term is therefore only applicable in the case of multi-dwelling units.
The total price of the property is calculated by adding the following components, all components are generally in Rs./Square foot and have to be multiplied by the area being sold.
BSP – Basic Sale Price is the basic cost of the property.
Other charges – Lease Rent, IFMS, Electric Substation Charges and Car Parking.
PLC – Preferential Location Charges- May be charged as View, park facing, road facing, Golf course, River side etc.
Floor PLC, for lower floors in case of Low rise apartments and for Higher Floors in case of High Rise Settlements.
Corner PLC may be charged in case of Plots
CLP – Construction Link Plan
Flexi Payment Plan – This is a construction linked payment plan but attracts different discount on BSP, as the first three installments take 50% of the total cost.
Down Payment Plan – Like a flexi payment this also attracts a huge discount on the BSP, but 95% of the payment is made within 60 days typically.
Goods & Services Tax is charged @ BSP and on Other charges, these are charged as per the payment plan and on each payment made.