Are you interested in buying or selling property in India? If yes, you must have come across different units of measurement used in real estate, such as Sq Feet and Gaj. Understanding these units and their conversion is crucial for making an informed decision about your property. Not only do these conversions affect the valuation of the property, but they also play a key role in determining the amount you can avail in a home loan. Companies like Grihashakti understand these measurements and offer competitive home loan products.
Understanding the Indian Real Estate Measurement Units
In Indian real estate, two of the most commonly used units of measurement are Square Feet (Sq Feet) and Gaj. These units can sometimes cause confusion, especially for first-time home buyers or sellers.
- Sq Feet: This is a common unit of area used in many parts of the world, including India. One Sq Foot is equal to the area of a square with sides that are 1 foot in length.
- Gaj: This unit is predominantly used in Northern India, particularly in states like Punjab, Haryana, and Uttar Pradesh. One Gaj is equivalent to a square yard.
Understanding these units is crucial in real estate transactions. They help in comparing the sizes of different properties and can assist in negotiating a fair price for the property.
Conversion Factors: Square Feet to Gaj and Vice Versa
Converting Sq Feet to Gaj is straightforward, and if you follow the steps below, you should be good to go.
- To convert Square Feet to Gaj: You divide the number of Sq Feet by 9. If you have a property that is 1800 Sq Feet, it would be 200 Gaj (1800/9).
- To convert Gaj to Sq Feet: Multiply the number of Gaj by 9. A property that is 200 Gaj would be 1800 Sq Feet (200*9).
A simple conversion chart can be a handy reference tool, especially when dealing with property transactions.
Practical Applications of These Conversions
Knowing the conversion from Square Feet to Gaj can be beneficial in many ways.
- Assessing Property Size: By understanding these conversions, you can accurately determine the size of a property, irrespective of whether the size is given in Sq Feet or Gaj. If a property in Delhi is listed as being 200 Gaj, you can easily convert this to Sq Feet to understand the size of a unit you might be more familiar with.
- Fair Pricing: Understanding the conversion can help you negotiate a fair price for a property. You can compare the price per Sq Feet or Gaj with market rates to ensure you are not overpaying.
Role of Property Measurement in Home Loans
In the context of availing an online home loan, the size of the property, measured either in Sq Feet or Gaj, plays a crucial role.
- Loan Amount: Lenders, like Grihashakti, determine the loan amount based on the value of the property, which in turn is influenced by its size. If a property has a higher measurement in Sq Feet or Gaj, it might command a higher market value, which could lead to a higher loan amount.
- Loan-to-Value (LTV) Ratio: Lenders also use the value of the property to establish the Loan to Value (LTV) ratio. This ratio is a critical factor in determining the maximum loan amount a borrower can avail against a property. Grihashakti offers a maximum LTV of up to 90% for home loans, depending on the borrower’s eligibility and the nature and value of the property.
When applying for an online home loan, having an accurate measurement of your property can be beneficial. This knowledge lets you understand the potential loan amount you might be eligible for and negotiate the best loan terms.
Importance of Accurate Property Measurement in Loan Against Property (LAP)
For a Loan Against Property (LAP), the measurement of the property in Sq Feet or Gaj is even more critical.
- LAP Amount: The loan amount in LAP is directly related to the value of the property, which is determined by its size.
- LAP Eligibility: The maximum LTV for LAP from Grihashakti is up to 70-75%, depending on the borrower’s eligibility and the nature & value of the property. Accurate measurements of your property can provide a clearer picture of how much you can borrow.
The knowledge of converting Sq Feet to Gaj is an essential tool in assessing the value of the property and determining the potential loan amount you can avail.
Tips and Suggestions for Property Buyers/Sellers
Whether you are buying or selling property, understanding the conversion from Square Feet to Gaj is crucial. Consider the following tips while converting:
- Accurate Measurement: Ensure that you accurately measure the property area. You can do this using various tools and apps available online.
- Use Appropriate Units: Use the unit that is most commonly used in your locality. If Gaj is the standard unit in your area, then use that for all property transactions. Conversely, use Sq Feet if that is the norm.
Conclusion
Understanding the conversion of Square Feet to Gaj is crucial for making informed property decisions. It plays a crucial role in determining the value of a property, negotiating a fair price, and even in availing a home loan. By being equipped with this knowledge, you can make confident decisions when it comes to real estate transactions or applying for a home loan from companies like Grihashakti.
Remember, knowledge is power. In real estate and home finance, understanding Square Feet to Gaj conversion is undoubtedly a powerful tool.