In India, the realty sector’s performance can be indicative of the country’s economy as a whole. According to a recent report, real estate is expected to contribute around 13% of India’s GDP by 2025.
- The realty market is projected to be worth around $1 trillion by 2030.
- Currently, the construction business is ranked third in the country among the 14 major segments.
Nevertheless, real estate customers or potential homebuyers in India remain unaware of the basics involved with the workings of the sector. This often causes confusion, buyer’s remorse and other issues. One of the common problems, in this regard, is the inability to comprehend property or land sizes. Oftentimes, individuals fail to grasp the simple concept of how to convert sq ft to acres and gauge the dimensions of one’s plot accurately.
Procedure to convert land measurements from square feet to acres
The first thing you must know when you convert square feet to acres is that one acre is the same as 43560 square feet. With this figure in mind, one can quickly determine the dimensions of his/her owned plot.
For example, consider that a plot one owns measures 1630 square feet. Converting it to acreage involves dividing this number with 43560. Thus,
Plot area in acres = 1630/43560 = 0.0374 acres.
This completes the procedure to convert sq ft to acres when it comes to measuring property space or dimensions. If an individual needs to convert square feet into acres, the procedure of it is simple as well.
Suppose, the acreage of the owned land is 0.0452, and one needs to figure out its dimension in square foot. All you need to do here is multiply the given acreage with 43560. Therefore, here,
Plot area in square foot = 0.0452 x 43560 = 1968.91 square feet.
Why do you need to convert sq ft to acres?
Conversion can be necessary for a variety of reasons, including, initiating the process to sell a property or land. Availing a loan against property from housing finance companies can also compel one to undertake such conversions during application. Conversely, individuals may need to convert the dimension from acres to square feet, depending on the financial institution concerned.
Also, when determining whether one qualifies for a loan against property or mortgage loan, he/she may need to provide the size of the owned property. This enables owners to assess the quantum they can avail against this underlying collateral.
Features and benefits of a loan against property
A loan against property is offered to borrowers against a mortgaged property. LTV for these loans can range up to 70% of the property’s market value. For instance, a house worth Rs.1 crore can fetch its owner up to Rs.70 lakh as LAP.
Moreover, one of the myths about loan against property perpetuates that borrowers cannot use a mortgaged property. However, this is not true since property owners retain complete rights to the property, as long as they repay the loan punctually.
Depending on the lender and one’s eligibility, a loan against property can be worth as high as Rs.3.5 crore. Besides knowing how to convert square feet to acres by way of understanding their eligibility for the advance, potential borrowers should also understand the various benefits of LAP to maximise its utility.
- Substantial principal
A loan against property allows access to a vast amount of funds, which can enable borrowers to finance various needs. Furthermore, this quantum comes with no end-use restrictions, meaning individuals can use the same in any way they wish to without interference from lenders.
Therefore, a loan against property can act as a means to fund costly treatment. Alternatively, it can also allow borrowers to finance higher education at premier institutes for their children. Access to such a significant amount of funds enables individuals to manage their finances better while studying abroad.
- Minimal interest charges
Interest rates for LAP are minimal when compared to unsecured lines of credit. LAP interest rates tend to start from as low as 7.90% per annum.
- The LAP market is expected to double to Rs.46 lakh crore by 2024.
A big reason for this reduced interest liability on LAP is due to minimal risk associated with the lender because of the underlying collateral value. In case of non-payment, lenders can recover the loan principal by selling the mortgaged property. With unsecured loans, no collaterals are involved.
- Pre-sanctioned offers to eligible applicants
Individuals with an impressive credit rating and history can acquire such loans more conveniently with pre-approved offers. Such offers are provided to accelerate the approval process. These pre-sanctioned offers are available on home loans, loan against property and more. Borrowers can check their pre-approved offer by submitting their full name and phone number.
To avail these benefits, an applicant would first need to consider his/her eligibility. Understanding how to convert sq ft to acres is a crucial step in this determination.