Must-Know Real estate terms before investing in it

Real estate sector is one of the most booming sectors, and everyone wants to invest in it. An investment that surely fetches you great results! There are many commercial properties in central Noida that can be really fruitful in terms of investment.

If you are new to this sector or planning to invest your hard-earned money to buy commercial shops in Noida or residential properties then you must get aware of some of the common terminologies. It will bring you closer to the real estate sector and make you comprehend things in a better manner.

1. Basic Sale Price (BSP)

Basic sale price is the cost of the property that the real estate companies offer for sale, it constitutes of base rate per sq ft. It is just the cost of the property and the buyer has to pay extra amount for preferential location charges (PLC), amenity charges, other maintenance fees and GST is also excluded from it.

2. Cash Flow

Cash Flow is the difference between the net amount of cash you earn from a property every month that can be categorized as the rental income and the operating costs that is spent in relation to the property. You maintain a positive cash flow when the income is more than the expenses, then you land in the zone of profitability. On the other hand, the negative cash flow is denoted by more expenses and less income.

3. Equal Monthly Installment (EMI)

When somebody borrows a loan, he pays a monthly amount to the lender which is called Equal Monthly Installment (EMI). EMI is paid by the buyers who loan to purchase a property. The total EMI is calculated taking in account the loan amount you are taking, the time period for which you are taking the loan, a person’s salary, age, credit history, and many more. You can simply calculate your EMI making use of an online EMI calculator very easily.

4. Return on Investment (ROI)

Return on Investment (ROI) can be defined as the profit you make on your investment. Calculating ROI is very simple all you need to do is to divide your net income by the total cost of investment. If you have a higher ROI, this means you earned a good profit. It is a simple measurement that helps you understand whether an investment you madefetched you profit or not. With so many opportunities and commercial projects in Sector 75 Noida, you are sure to get great ROI on your investment.

5. Built-up Area

It is very important to understand what is the built-up area when you are planning for a property. It is the actual area that is used by the buyer of a residential or commercial property. The built-up area is made up of the carpet area, internal & external thickness of the wall, and also the balcony area. When it comes to the commercial property it incorporates the carpet area, and the internal & external thickness of the walls.

6. Carpet Area

As per the guidelines of RERA (Estate Regulatory Authority), the Carpet area is the net area that is available for use. It does not include the area covered by the external walls, excluding the balcony or verandah area, areas under services shafts, and the open terrace area. In other words, the carpet area is the area that can be carpeted excluding the thickness of the inner walls that is generally. To be precise, it is measured from wall to wall and the owner has the exclusive rights to sell it when it comes to commercial or residential properties.

7. Super Built-Up Area

Super built-up is the total area that includes the built-up area and all the common areas that includes everything from the terrace, corridors, lobbies, stairs, and lifts. It is also used by realtors to promote their projects and is also called the salable area. Super built-up area is the area including carpet area, wall thickness, and other areas that include a terrace, corridors, lobbies, stairs, lifts, etc. Moreover, some builders include a swimming pool, clubhouse, gymnasium, and garden also in the super built-up area.

8. Credit Score

A credit score measures a person’s eligibility to pay a loan. The credit score ranges between 300 and 900 and is also called the CIBIL score. If you have a good CIBIL score there are more chances for you to get the loan as it is evaluated on your past credit history. A credit score above 750 is considered a good score and is more likely that you will get the loan without much fuss. Before giving the loan

9. Appreciation

Everybody makes an investment to earn a profit and the profit comes when the value of the purchased property increases over a period of time, this is called Appreciation in the real estate industry. The value of the property is more likely to increase if it has a favorable location, high demand, limited supply, inflation, etc. appreciating the value of the property. The value of commercial shops in Noida is sure to appreciate because of the opportunities it offers.