All you need to know about Preferential Location Charges!
There are multiple costs one needs to pay while buying his dream home. Besides other costs, some builders also take an additional charge called the preferential location charge (PLC).
So, what is a PLC?
PLC is a premium cost which a home buyer pays while preferring to book a unit with a better location situated in the same apartment complex. An apartment facing a sea, swimming pool, lake or a park, or Vastu compliant home will be charged a PLC at per sq. ft. rate. One can calculate the PLC amount by multiplying the super built-up area of the apartment with the rate specified in the developer’s rate card. PLC usually varies from Rs 40-150 per sq. ft.
Each floor may also have a PLC which is popularly known as the floor rise premium. It usually goes up once you cross the third floor. Higher floors have a higher floor rise charge. This may usually vary from 3-4.5 per cent of the total apartment cost. One also needs to understand that floor premium in NCR is higher for lower floor apartments due to excessive heat. On the contrary, in cities like Mumbai and Bangalore, the floor rise premium is more as one goes higher up.
Factors determining PLC
There are no standard rules or guidelines that govern PLC. Each developer and project has a different PLC amount and most of the luxury apartments located in a posh location have higher PLC based on each unit. Apart from the luxury projects, penthouses which are built on top of a tower or an independent villa with a wide road in front or garden facing, or corner plot etc. may also have a PLC
Moreover, builders may also charge a premium for vastu compliant homes. But this varies from city to city. For instance, in Chennai, south facing apartment is considered auspicious and may command a premium. While in Bangalore, east or north facing is considered more auspicious and hence, may command a premium.
Hence, the next time you plan to check out an apartment, make sure that you look at the premium charges specified by the developer in the project cost sheet.
