As a home buyer, when you are in the course of buying your dream home, you confront with several real estate jargons. One such term in real estate is Preferential Location Charges or popularly known as PLC. Property developers have made the term almost impossible to be avoided while purchasing home. The term has also being included as one of the promising sales pitching strategies.
PLC is an extra cost that is levied by builders from buyers/investors for booking apartment/commercial space which has some unique advantages over the other units of the same property. PLC will be judged upon several factors for a unit like park facing, swimming pool facing, club house facing, corner plot, road facing etc. The factors and charges vary according to the type, location and environment of a project.
Builders have made PLC as an integral part of the net value of the property. Generally, the charges might range from Rs 50 per sq ft to Rs 500 per sq ft. The trend of deciding the charges differ in different locations. If you are buying a property in Delhi-NCR, you will have to pay higher PLC’s for apartments in the ground floor. The trend in Mumbai is that the more the elevation, the higher the PLC charges.
For a property which is corner plot facing the park, the PLC can be attributed in two ways: one for the floor chosen and the other charge for park facing. The corner plot can be accountable for the third possible PLC to be levied from you. The luxury factor is also a key element in determining PLC’s of a project.
However, rather than concerned about the PLC factor, home buyers should focus on the location and surrounding views of a project while buying your home. As an investor, your prime focus is undoubtedly the resale value of the project. In this regard, your interests while home buying should be primarily concerned about the location of the residential project, rather than the location of your apartment.