Hello, friends. Today, we will discuss a little-known real estate condition. This condition is – PLC i.e. Preferential Location Charges.
When you go to buy a house or flat, the developer tells you a price. But do you know, apart from this base price, you may have to pay some extra money? Yes, this is PLC!
Real estate investing has many terms and abbreviations that can confuse beginners. If you are also thinking of investing in real estate, then it is very important to understand PLC.
Full form of PLC
PLC stands for “Preferential Location Charges“.
What is PLC?
PLC is a fee developers charge for units in prime locations within a project. These fees may vary by project but are generally charged in these situations:
- Higher floors: Flats on higher floors have better views and light. The developer may charge more for this.
- Corner flats: Corner flats are more airy and well-lit, for which an additional fee may be charged.
- Front flats: The developer may charge an extra fee for flats facing the main road or a major landmark.
- Near special amenities: Flats near swimming pools, gyms, or parks may attract PLC.
How is PLC calculated?
PLC can be calculated in different ways. Some developers charge PLC as a fixed amount per square foot, while others charge as a percentage. Some developers also use a combination of both methods.
When is PLC paid?
PLC is usually paid at the time of booking the flat or in a few installments. This may vary depending on the developer’s policies and the project’s rules.
Effect of PLC on home purchases
PLC can increase your total investment. Therefore, before buying a home, you should keep PLC in mind and plan your budget accordingly.
What precautions should be taken regarding PLC?
- Credibility of developer: Make sure you are buying from a credible developer.
- Clarity of PLC: Get clear details on the PLC and payment terms from the developer.
- Other charges: Besides PLC, consider other charges like stamp duty and registration fees.
- Budgeting: Include PLC in your total budget and make sure you can afford it.
Frequently Asked Questions about PLC
1. Is PLC mandatory?
No, PLC is not mandatory. It depends on the developer’s policy.
2. Is PLC applicable in all projects?
No, PLC is not applicable in all projects. It depends on the developer’s policy and the features of the project.
3. Is PLC taxable?
Yes, PLC is taxable.
Conclusion
PLC is an important factor that must be taken into consideration when buying a property. It is important to understand PLC. Know how to calculate it and its impact on your investment. If you want a unit with a better location, you may have to pay PLC. But, if you are on a budget, you can choose a unit on which PLC is not applicable.
Please share this article with your friends and family so that they too can understand PLC. If you have any questions, please comment below.