Consider Loading Factor before Buying the House
Jul 23, 2019 Home Trading Steps
When it comes to buying a house, one often looks at the carpet area of the property and the super built area. The builder insists on these factors heavily to make sure that the buyer knows what they are buying. However, there is another factor that is often forgotten. The ‘loading factor’ can be an important deciding factor for you to decide if you want to purchase the property or not.
To under the loading factor, one must understand the concept of carpet area and super built area. The carpet area is the area that you get within the walls of your property. The super built area is the extended area such as the lobby, staircase, gym etc. Loading factor is the difference between the carpet area and super built area and is calculated in percentage.
Importance of loading factor:
The loading factor is the extra component that the builder uses to recover the cost of additional facilities that they are providing to their home buyers. The facilities include lift, lobby, parking, terrace etc. in the luxury segment of the real estate, the loading factor can go as high as 60 percent and the same can be justified by the builder stating that the superior amenities are provided as compared to mid-segment projects.
Many developers do not include the loading factor and it because it gives the home buyers a clear idea of the money they are investing in. Most of the time, the developers also calculate the loading factor in proportion to the super built area instead of the carpet area to bring down the ratio. This can be misleading to the homebuyers and gives them the wrong idea of the investment they are making.
Two years back, the real estate law made it mandatory that the builders mention the carpet area and the super built area so that the buyers are free to calculate the loading percentage and make the right decision.
Ideal loading factor:
Loading factor differs from city to city and the type of project. Ideally, the loading percentage should be 30 percent but in luxury segments, the ration is higher. Smaller projects or mid-segment projects have lesser loading percentage. The ratio goes up when it comes to the luxury segment.
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