The world of real estate is vast and complicated, and there’s a lot to consider when you’re dealing with properties and land. One of the most fundamental considerations when it comes to real estate is the concept of area. Area not only determines the size of a property, but it also affects its value, zoning, taxation, and more. As a result, it’s essential to have a reliable and easy-to-use land converter for area calculation.
If you’re working in real estate, whether you’re a broker, developer, or simply a homeowner, you need to be able to calculate area accurately and quickly. At times, you may also need to convert acres to square meters or square feet to hectares, depending on the unit required. Thankfully, land area convertors exist, and they’re highly useful tools for these kinds of conversions.
Using a land converter isn’t always straightforward, though. It’s easy to find numerous land converter tools online, but not all of them are user-friendly, accurate, or reliable. It can be incredibly frustrating to deal with interfaces that are difficult to navigate, tools that do not account for measurements precisely, or conversion calculators that do not account for environmental factors such as topography, soil type, elevation, or slope.
To ensure that you find a land area converter that is both user-friendly and reliable, consider using one that is backed by the latest technology and algorithms. The best calculators are often refined and tested continuously, ensuring that they deliver the most accurate results possible. You can differentiate between the better and poorer tools by looking for ones with fewer ads and a cleaner interface.
Besides using a land converter for area calculation, you may also need it when applying for loans against properties. Several banks and non-banking financial institutions (NBFCs) in India offer loans against property (LAP or LPA), where you can put up a portion of your property as collateral to secure the loan. The LAP is an excellent financial instrument for businesses or individuals looking to purchase new assets, expand their operations, repay existing debts at lower interest rates, or consolidate debt obligations.
While applying for a LAP, the lending institution will compute the property’s value to determine the loan eligibility. This is usually based on the property’s appraised value, the type of property (residential, commercial, industrial), its locality, the prevailing market rates, the loan-to-value (LTV) ratio, and the age of the building, among other factors.
To calculate the property’s appraised value, the lender will need to identify its area accurately. This is where the land area convertor comes in handy, as it can help you convert between different units of area to calculate whether your property is eligible for a LAP, and if so, to what extent. The appraisal value is generally calculated as the market rate per unit area multiplied by the property’s total area (in the same unit).
For instance, if you have an 800 square meter property in the heart of Mumbai, and the market rate per square meter is INR 20,000, then your property’s appraised value would be INR 1.6 crore (800 sq meters x INR 20,000 per sq meter). Based on the LAP norms, you could be eligible for a loan amount ranging from INR 1 crore to INR 1.2 crore, depending on the LTV ratio of the lender and other parameters.
Similarly, this land area convertor tool can help you calculate the property’s eligibility for loan-against-land or loan against property. The loan-against-land (LAL) or loan-against-property (LAP) can offer you a substantial loan amount against your property’s value, making it easier to fund your education, wedding, or other financial needs. However, the decision to apply for such loans should not be taken lightly, as any existing debts or encumbrances on the property can impact your eligibility and repayment capability.
In conclusion, the land converter stands as a critical tool for real estate transactions and land measurement. Whether you’re a broker, buyer, seller, or securing an online loan against property, accuracy in figures is paramount. When relying on online tools, selecting the right converter becomes crucial for precise measurements and conversions.
Therefore, ensure that you use a converter that you can trust with the accuracy of measurements and the precision of calculations. The tool should also be easy to use to avoid a learning curve, especially if you need to convert measurements regularly. With the correct land converter, you’ll never again have to worry about the accuracy of your measurements or stress about your loan eligibility based on property value.