Understand Difference Between Plinth Area and Built Up Area

When it comes to real estate, understanding the nuances of property measurements is crucial. One of the common confusions homeowners and buyers face is the difference between plinth area and built up area. Knowing these terms is essential for accurate property valuation, and it can also help when applying for a Loan Against Property with Bajaj Finserv. This guide will provide a clear understanding of these concepts, helping you make informed decisions in your real estate ventures.

The difference between plinth area and built up area is significant as it affects the property's valuation, tax calculation, and insurance premiums. A precise understanding can help in accurate property assessment, ensuring you get the best value, especially when leveraging financial products like Bajaj Finserv Loan Against Property. This article will walk you through the definitions, calculations, and key differences between plinth area and built up area, helping you navigate these terms with ease.

What is the Plinth Area?

Plinth area refers to the covered built-up area measured at the floor level of any storey. It includes the area of the internal and external walls, lobby, corridors, and the space under the walls. It does not include open areas such as terraces, balconies, or any other uncovered spaces.

Understanding the plinth area is vital as it forms the base for calculating property taxes and other related charges. Accurate measurement of the plinth area ensures that you are not overpaying or underestimating the value of your property. For those considering a Loan Against Property, having an exact plinth area measurement can streamline the loan approval process and get you a better deal.

What is a Built Up Area?

The built up area, on the other hand, encompasses the plinth area along with the space covered by balconies, terraces (if covered), and other external areas that are part of the property. It includes everything that comes under the roof of your property.

This metric is crucial for understanding the actual usable space within a property. When applying for a Loan Against Property, knowing the built up area helps in providing an accurate value for the property, thus ensuring you get a loan amount that reflects the true worth of your property.

Key Differences Between Plinth Area and Built Up Area

Feature	Plinth Area	Built Up Area
Definition	Covered area measured at floor level	Includes plinth area plus balconies, terraces (if covered), etc.
Components included	Internal and external walls, lobby, corridors, space under walls	Plinth area + balconies, covered terraces
Usable space	Less usable space compared to built up area	More usable space, includes additional covered areas
Impact on valuation	Lower property value compared to built up area	Higher property value includes more space
Importance for loans	Basis for tax calculation and basic property valuation	Crucial for accurate property valuation and loan amount

How to Calculate Plinth Area?

• Measure the external dimensions of the building at the plinth level.

• Include the thickness of external and internal walls.

• Add the area of lobbies, corridors, and staircases within the building.

• Exclude open spaces like balconies and terraces.

How to Calculate Built Up Area?

• Start with the plinth area measurement.

• Add the area of covered balconies.

• Include the area of covered terraces.

• Ensure that all covered external spaces are part of the calculation.

Common Mistakes in Calculating Plinth and Built Up Areas:

• Omitting wall thickness: Ensure to include the thickness of both internal and external walls in the plinth area.

• Ignoring covered spaces: Remember to add all covered spaces like balconies and terraces to the built up area.

• Incorrect measurements: Double-check all dimensions to avoid calculation errors.

• Mixing up terms: Clearly distinguish between plinth area and built up area to avoid confusion.

Understanding the difference between plinth area and built up area is crucial for accurate property valuation. This knowledge not only helps in real estate transactions but also when applying for financial products like Bajaj Finserv Loan Against Property. Proper calculation and distinction between these areas ensure you make informed decisions, get accurate valuations, and secure the best deals.

With Bajaj Finance, you can leverage your property value efficiently and enjoy benefits like competitive interest rates and flexible repayment options. Whether you are planning a new investment or need funds for personal use, a Loan Against Property from Bajaj Finance is a smart choice.