The term commercial property refers to buildings or land planned to generate a profit, either from capital gain or leasing income.
Commercial property includes office buildings, hotels, malls, retail stores, industrial property, farm land, multifamily housing buildings, medical centers, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as profit-making property for tax purposes and borrowing.
Types of commercial property
Commercial real estate is mainly divided into six categories:
• Office Buildings – This category includes single-tenant property, small professional office buildings.
• Industrial – This category ranges from smaller properties to larger office service or office warehouse properties. An important, defining feature of industrial space is Clear Height. Clear height is the actual height, to the bottom of the steel girders in the inside of the building. These can be Grade Level, where the parking lot and the storehouse floor are on the same level. Some buildings may have a rail track for train cars to load and unload.
• Restaurant – This category includes sites on highway frontages, retail buildings, small neighborhood shopping centers, larger centers with grocery store, “power centers” with large anchor stores like best Buy, OfficeMax, and so on even outlet malls.
• Multi-family – This category includes residence complexes or high-rise apartment buildings.
• Land – This category includes investment properties on undeveloped, rural land in the path of future development.
• Miscellaneous – This catch all category would include any other non-residential properties like hotel, hospitality, and self-storage developments and many more.
Existing: Home Loan of upto 20 lakhs i.e. property costing maximum 25 lakhs in main metropolitan cities is classified under affordable housing. For other urban areas, loan of upto 15 lakhs i.e. property costing max 20 lakhs. The existing definition of affordable housing is surplus as it is next to not possible to find property under 25 lakhs in urban cities.
Revised: Loan of upto 50 lakhs i.e. assets costing maximum 70 lakhs in 6 Metropolitan cities of Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bengaluru will come under affordable housing.
Important Points for Buyer
In order to avail benefits of Affordable housing in Faridabad, a builder may compromise on certain aspects which a buyer should make sure thoroughly. If cost of property is upto 65 lakhs then there is all reason to go through following vital points:-
1. Construction Quality: The rate of land is very high in metro cities which are major cost factor in any project. If project fits in revised definition of affordable housing, builder may compromise on construction quality. Now few builders are promoting XYZ construction technologies as compared to traditional construction techniques which may or may not be true. Construction quality flat directly impacts the life of property. Client can check the charges of construction with builder & details of construction technology used.
2. Location: On detailed analysis, some reputed builders are misusing the revised definition of affordable housing. They increased the rate of projects on out of city and promoting it as affordable housing.