We understand how every industry has its jargon, and that real estate is no different! 

There are a multitude of real estate terms and definitions out there, and it may add layers of confusion if you’re just starting to learn about the real estate industry! To make it easier for you, we have carefully curated this ultimate dictionary of important real estate definitions you should know if you want to dwell deeper into real estate. 

1. Appraisal

If you need to get a loan sanctioned from the bank to buy a new home, you need to first get it appraised. The appraiser will determine the value of your new home based on a thorough property examination, and analyzing the price with other comparable properties in the area. This process gives the bank surety that they are lending the right amount of money. 

2. Carpet Area

As the name suggests, the carpet area is the space you have to lay a carpet on the floor. It is important to note that this space does not include the thickness of the inner walls. To put it simply, it is the usable area in a room/ office/ unit, etc. 

3. Collateral

Collateral is an asset that guarantees a loan repayment. The borrower risks losing this asset if they do not repay the loan as per the terms of the contract. 

4. Floor Space Index

Floor Space Index or FSI is the ratio of the combined area of all floors to the total plot area. A higher HSI indicates a higher built-up area. The built-up area includes the carpet area, thickness of the walls, and the balcony area that is enclosed within the inner walls. 

5. Freehold Property

Freehold property is a property over which an individual has complete ownership. To put it simply, freehold means “free from hold” of any external entity other than the owner. The  freeholder owns the property, and the land it’s built on and is completely responsible for the same. 

6. Interest

Interest is the cost of borrowing money to buy a home. Interest and Principal are combined to determine your monthly loan payments. The longer a home loan is, the more interest you will have to pay. If you are considering a home loan application, we have a checklist that you can refer to for more information! 

7.Leasehold Property

As the name suggests, the ownership of the property is leased to a tenant for a certain period. You can also check our blog on lease vs rent to get a better understanding of both the real estate terms! 

8. Maintenance Charges

These are the charges paid by the owner/ occupants of the property towards the overall upkeep of the facilities. Most often, it is paid as a monthly charge and the amount depends on the amenities the property offers. 

9. Per Square Foot Rate

Per square foot rate helps developers to determine the value of a property of a super built-up area. The super built-up area of a property is a combination of common areas (staircase, lobby, lifts, etc.) and the built-up area (carpet space, balcony area, wall thickness, etc.). 

10. Pre-launch Property

A pre-launch property is a project that is still in the planning stage and is expected to receive complete approvals for the construction. To raise funds, property developers offer appealing discounts in the pre-launch stage of a residential project. However, investors need to weigh their options and make an informed decision as there are risks involved. 

11. Principal 

The principal amount of a home loan is considered as the amount owed to the lender, excluding the interest. Homebuyers pay a fixed principal and interest amount each month as EMI to the lender. 

12. Property Registration

Among the multitude of tasks that a homebuyer has to do is the responsibility of registering a property with the government. A property is considered “registered” after filing property documents, and after paying stamp duty & registration charges. Once a property is registered, this means that the individual in whose favour the property was registered, becomes the lawful owner and is responsible for it in all aspects. 

13. Ready-to-move-in Property

As the name suggests, a ready-to-move-in property is ready to be occupied. It is completed in all aspects and has also received a completion certificate. 

14. Real Estate Broker

It is important to understand the difference between these two real estate words: an agent and a broker. 

A real estate agent is responsible for bringing buyers and sellers together and is paid a percentage of the property’s price once the property is bought. On the other hand, a real estate broker is someone who works independently and oversees this process by having real estate agents employed under their brokerage. 

15. Saleable Area

The saleable area is another term for “super built-up area”. This refers to the combination of common areas (staircase, lobby, lifts, etc.) and the built-up area. (carpet space, balcony area, wall thickness, etc.) 

To conclude these real estate terms, we understand that it may be overwhelming to learn about a diverse industry from scratch. However, the knowledge of these real estate definitions and terminologies will serve to be fruitful in the long run, whether you plan on investing or selling a property. If you are interested in living in and around Bangalore, you should check out our residential projects that consist of various properties like row houses, villas, gated apartments, and more! We, at Assetz, aim to give you the luxury and comfort you deserve in your abode! 

It’s no secret that buying a new home is a herculean task! However, planning to live in a rental property can also be an overwhelming process. One of the most common questions while searching for a house, is whether to sign a lease agreement or a rental agreement. On a surface level, a lease and rent may sound similar; however, there is a major difference between the two of them. 

• In a lease agreement, the maintenance of the asset/ property lies on the lessee or the person who is signing the agreement. 
• In a rental agreement, the owner of the asset/ property is responsible for the maintenance of it. 

You must research and understand the difference between lease and rent to make an informed decision. Let’s first start with the basic definitions of lease and rent in India. 

Lease vs Rent: A Comparative Table

Basis for Differences	Lease	Rent
Definition	“Lease” is agreeing with the lessee (in simple terms, tenant) to use a property for a long period of time.	“Rent” is entering into a contract with the tenant to use an asset only for a short period.
Maintenance	In a lease agreement, property maintenance responsibility lies on the lessee.	In a rental agreement, the property maintenance responsibility lies on the homeowner.
Changes in Agreement	Once the agreement is signed, no changes can be made throughout the duration.	The homeowner can make changes to the agreement whenever he/she chooses to do so.
Term	Generally, a lease agreement lasts for 1-3 years.	A rental contract generally lasts for a short duration.

Now that we know the basic difference between lease and rent in India, let’s take a close look at the benefits. 

Long-term Lease Benefits:

If you want to stay in a place for more than a year, a long-term lease agreement can offer several benefits, such as:

Cost-effectiveness

Living in one place for a long period can provide several benefits financially. Unlike short-term rental agreements that charge premium prices, a year or two-long lease agreement can lower your monthly charges. Besides, this cost-saving means you can look at signing a lease for a better apartment in a suitable location. 

Larger Inventory

When it comes to lease vs rent, many homeowners will not want to offer short-term contracts due to the risk of tenant turnover. Thus, there’s a large market for individuals looking to stay in a home for over a year! 

Negotiation Potential

Getting into a 12 or 24-month lease can give you the chance to negotiate your monthly payments. Homeowners will be more inclined to reduce the charges if you intend to stay for a longer period of time. 

Short-term Rental Benefits:

If you intend to stay in a place for a shorter duration, a rental agreement can offer several benefits, such as:

Increased Flexibility

Month-to-month rental agreements often require a very short notice period before you terminate the contract. This gives the tenant full flexibility if they are unsure about staying in a place for a longer duration. 

Contract Adjustments

When it comes to lease vs rent, a long-term lease agreement usually means that both the landlord and tenant are bound to what they agreed upon initially. However, in a rental agreement, the contract can be adjusted as per what’s suitable for both parties. 

Reduced tenant risk

Short-term rental agreements are also beneficial for tenants who may have to break their contract, due to unexpected circumstances. This allows renters the flexibility to break a contract, without accumulating excessive fees or penalties. 

If you are searching for Lease vs Rent, remember that they are very different, even though they sound very similar at first. As mentioned earlier, you must do plenty of research before you narrow down on an option. If you’re looking to live somewhere in and around Bangalore, we have a comprehensive guide on living in Whitefield that provides you with all the information you need to know! If you’re looking to spruce up your space with decor this festive season, check out our blog on eco-friendly home decor ideas for some inspiration! You can also check out our various residential projects, consisting of villas, row houses, and apartments that aim to give you the luxury and comfort you desire! 

Buying a house is considered to be one of the safest investment options. The purpose of a home loan application could be to secure a long-term living space or simply for investment reasons. Nevertheless, the process of acquiring a home loan is easier said than done. It’s important that you make an important decision, especially when it comes to finances. Here are a few factors you need to consider when you apply for a house loan: 

Credit Score

A good credit score and history will make it easier for you to apply for a house loan with lower interest rates. A credit score anywhere between 750 and 900 is considered great for easy loan approval. A credit score ranging from 650 to 750 is considered good, but the lender will inquire regarding your financial status and other relevant factors. Anything below 650 is considered average and will require some effort to improve if you are considering a home loan application. 

Extensive Research

With the internet at our fingertips, it has become far easier to research the topic of our choice. In this case, it is recommended to perform a detailed analysis of the various home loan options. This will help you settle for the right lender who offers suitable EMI and interest rates. It’s imperative to understand that these details should be clarified before, during, and after the application for home loan to ensure a smooth process. 

Rate of Interest (Fixed vs. Floating)

Concerning the rate of interest, there are two terms that one needs to understand: A fixed vs. floating rate of interest

As the name suggests, a fixed interest rate will remain constant from the moment the loan gets sanctioned, regardless of any changes in the financial market. However, a floating interest rate can change depending on the financial market conditions. 

In today’s world, the floating rate of interest has proven to provide the borrower with more long-term benefits, compared to fixed rates, such as: 

– Helping in reducing the overall cost for the borrower. 

-If the interest rates decline, the borrower will reap the benefits as the floating rate on their loan will also decrease. 

Employment Stability & Number of Dependents 

In addition, banks also analyze all home loan applicants and understand their employment stability and the number of dependents they have. If a borrower has more number of dependents, the lenders may make an assumption that the loan repayment capacity may be affected due to spending on their dependents; thus, resulting in delayed EMIs. Hence, a stable monthly income and long-term employment are bound to make a favourable impression on the lender for home loan application. 

Rate of Tenure

While opting for any kind of loan, be sure to check if the bank allows for a short repayment tenure. It is always advisable to go for a short tenure as the longer it gets, the more interest you will have to pay to the lender. This will increase the overall cost for the borrower. 

Changing Loan Lender 

Home loan borrowers do have the liberty to switch from one lender to another. Be sure to consider it only if the other lender offers a significantly lower interest rate, as a prepayment penalty may be levied by the current lender. Apart from this, other additional costs include a “processing fee” that is paid to the new lender once the shift is made. 

To conclude, an application for home loan may seem like a daunting task, but do remember that it will be worth the effort in the long run! If you’re searching for more details on documentation, we have an elaborate property documents checklist that can guide you in the process. Besides, we also have a comprehensive guide on housing loan insurance. Keeping all homebuyers in mind, we also have a blog on NRI Real Estate Investment. If you’re looking to buy a new home, check out our latest cutting-edge project – Sun & Sanctum. Strategically placed in North-East Bangalore, one of the most rapidly growing cosmopolitan neighbourhoods in India, this project perfectly captures the buzz of urban life and the tranquility of nature. Come and live a one-of-a-kind home experience at Sun & Sanctum.

Bangalore’s real estate market has witnessed a steady increase in recent years due to its improved connectivity and well-developed infrastructure. However, the software boom played a major role in making the city a real estate hotspot in India. Most multinational companies are located near Electronic City; thus, making the area one of the best real estate investment options for potential home buyers, even during the COVID-19 pandemic. 

Let’s dive deeper to understand why it’s the right decision to invest in real estate in Electronic City: 

Connectivity to key parts of the city

Living in Electronic City brings you a plethora of location-specific advantages due to its accessibility to the rest of the city. Transportation is a smooth, hassle-free experience as the Silk Board Junction in the locality is connected to Koramangala, Madiwala, and other important areas. Bannerghatta Road and NICE Road in the locality are also essential roadways for commuting. If you are someone who regularly takes public transport, the BMTC buses can help you commute to any destination within Bangalore! 

Excellent residential properties

If you are looking to invest in a property, you will be spoilt for choice in Electronic City! Some of the best residential apartments and villas with top-notch urban amenities can be found here. With the exponential growth potential of Electronic City, several premium real estate developers have launched projects here. One such project is Canvas & Cove by Assetz Property Group. Striking the right balance between luxury and comfort, these homes are sure to make you feel vibrant!

High Return on Investment 

While a newly bought house adds immeasurable personal value, it still is a form of investment. Hence, it’s important to make an informed decision while buying a new home. Ensuring that you get high returns on the amount you spend on investment should be a crucial factor while buying a property. 

Previously, the real estate market in Electronic City has seen an increase of close to 13-14%. While property prices are expected to follow an upward trend in the future, this will ensure a steady ROI after investing in real estate near E-City. 

Besides, with several MNCs located in the vicinity, you won’t have to worry about finding tenants here! This can aid in earning a steady income through rent. 

With a 4-5% rental yield, this popular IT Hub stands out for its high rental demand. 

The property value you earn as annual rental income is beyond just satisfactory! To conclude, you can invest your hard-earned money in real estate near Electronic City and can get guaranteed returns.

Close proximity to IT parks

If living near your workplace sounds like an unattainable dream, buying a property in Electronic City can help make that a reality! Some of the top tech companies located here are TCS, HCL Technologies, Siemens, Intel, and more! Besides, this locality is also a thriving community for smaller ventures to set up their offices. Living here can assure you that you are near several career growth opportunities that Bangalore has to offer. 

Top Education Institutions

Electronic city isn’t just the perfect location for thriving working professionals seeking to enhance their career growth, it’s also an excellent choice for families! Here, you can find several prestigious institutes to ensure your child receives a holistic education. Some of the best schools include VIBGYOR High School, Treamis World School, and Ebenezer International School. 

Electronic city is also known for its higher education institutes, such as Aziz Premji University, Xavier’s Institute of Management and Entrepreneurship (XIME), and many more. No matter where a child’s interests lie, Electronic City can provide a well-rounded education that ensures overall growth and development. 
To put it in a nutshell, investing in real estate in Electronic City is sure to bring you a plethora of benefits. We understand that buying a new home can seem like a herculean task! We’ve compiled a property documents checklist that you can refer to throughout your home buying process. Check out one of our recent projects – Assetz Canvas & Cove. This 17-acre project offers 2 BHK and 3 BHK apartments that are located Off Hosur Main Road, overlooking the Begur Lake. Some of the key aspects of Canvas & Cove are it’s carbon healing homes, top-notch urban amenities, and high-quality specifications sourced from reputed manufacturers around the globe. So, go ahead and invest in a new home today!

Home is where the heart is. While choosing a home for you and your loved ones, there are several amenities and types of houses to look at and consider. Whether you’re buying a new home to stay in or rent out, a good return on investment is always a must. Here is why opting for a gated society gives the highest ROI in terms of happiness and maximum satisfaction. 

Organized security systems

Most gated apartments come with a stringent surveillance system. Some of the implemented amenities include CCTV cameras, a database for visitors, 24/7 security personnel, fire alarms, etc.  They also have fixed entrance and exit points with solid fencing and intercoms, making sure to safeguard you from unfortunate mishaps. These amenities are especially reassuring if you have elderly people or very young children at home. 

Assured privacy

The security system in gated apartments does not allow trespassing of unverified visitors and guests who may impede you from carrying out your work. This privacy is one of the key factors for public figures and celebrities. 

Strategic location

Gated community apartments are carefully located to make sure all residents can carry out a comfortable life. Schools, colleges, malls, theatres, parks, and temples are usually only within walking distance. Many residents of a gated society enjoy having grocery stores and parks right inside the property. Besides, these apartment complexes are carefully located away from the hustle and bustle of the city. They remove any noise that can hamper your day of relaxation at home.  

Activity centers

One of the best parts of living in a gated society is the abundance of activity centres. These include cycling paths, jogging tracks, swimming pools, and gymnasiums. Luxury gated communities also come with basketball courts, cricket grounds, badminton courts, etc.  This reduces the trouble of travelling after a tiring day of work when one tries to inculcate a healthy lifestyle. As for concerned parents about children having too much screen time; gated communities come with parks and playgrounds for children to enjoy the natural environment and learn to seek out exercise. 

Reduces carbon footprint

With the climate emergency that is currently ongoing, it is more important than ever that we take the necessary steps to live sustainably, maintain environmental quality, and conserve the Earth’s resources. And gated communities take care of this by providing several green features like rainwater harvesting, solar-powered lights, efficient solid waste management, and more. 

Community-building

Whether it’s Diwali, Christmas, Ramzan, or Independence day, all residents come together to celebrate the festive season. Being surrounded by friends and family can instil a sense of unity and harmony. You and your family can become a part of the whole community while living in a gated apartment. 

Facilities for guests

There are many opportunities to entertain your guests. Many gated apartments have banquet halls that can be rented for birthday and engagement parties. Lawns can be used for potluck dinners, barbeques, etc. The large spaces also ensure comfort and areas to set up arrangements for guests.

Organized parking systems

While cars can be great assets to a family, buying and maintaining them can be difficult. With organized parking lots, your vehicles can be completely safe. There is also an option of requesting extra space, in case you have more than one car. Parking them in road lanes can cause scratches, damages during natural disasters, and make them susceptible to thefts. Hence, systematic parking lots can save you from such worries.  

These facilities and amenities can surely make you feel at home. It caters to the demands of all age groups and communities helping everyone get maximum satisfaction.
 At Assetz Property Group, we understand that buying a house is a long process. Keeping in mind the confusion that may occur during such a time, we have curated a property documents checklist and a detailed guide on securing a home loan for homebuyers. Learn more about our newest cutting edge project- Sun & Sanctum. Carefully located, and strategically planned in the North-eastern part of Bangalore; this luxury gated community is extremely serene. Decked up with multiple activity centres and entertainment facilities, it is sure to strike the right balance between luxury and comfort!