The biggest tool an investor has is knowledge on his side. But when it comes to real estate, we can see a lot of investors do not pay a lot of attention to more minor details, which can create significant problems for them.
Here are three terms and terminologies that will boost your Real Estate knowledge-
1. Carpet Area – In Real Estate carpet area refers, to when you buy a flat, the actual area on which you can lay carpet is called the “carpet area.” Note that builders advertise the property based on other parameters, but as a buyer, this is what you will use for the next many decades. Higher the Carpet area, the better space you get.
2. Super Built-up Area – A lot of times, you will come across the term “Super Build-Up area,” which is nothing but a built-up area along with all the space common to all the residents of society, like Corridors, staircases, parking areas, etc. Many builders also use “super built-up areas” to advertise the projects, giving an artificial picture of the property.
3. Capital Gains – When you sell a property after three years, your profit is called “Capital Gains.” Tax will be applied to these Capital gains after applying Indexation. Also, you can avoid paying this tax if you divert part of the profits to another property, or another way of saving tax on that amount is investing in the National Highway Authority of India (NHAI) or Rural Electrification Corporation of India (REC) bonds.