Month: December 2017

Dunedin Real Estate Your Dream Property Is Within Your Reach

Property blogger

Sometimes referred to as the southern gem, Dunedin is the South Islands second biggest city, characterised by a unique Scottish feel and architecture imposed on it during the time of New Zealands colonisation. Surround by beaches, forests and dramatic scenery, Dunedin is noted for its youthful and charismatic population being attracted by the educational and tertiary facilities contained within. With a population of just over 125,000, the city is one of the best preserved Victorian and Edwardian cities in the Southern Hemisphere. Becoming a desired location for students, families and businesses alike, the demand for Dunedin real estate is increasing at above average rates.

According to the latest Quotable Value New Zealand figures, southern Dunedin real estate figures have surged, recording the highest percentage increase in the country. The southern region extends from Waverley to Green Island, including the suburbs of St Kilda and St Clair. The figures illustrate that the area has experienced an increase in home values by 8.7% with an average sale price of $264,000. Likewise, Dunedin overall, showed a 4.9% increase in property values with the average sale price rising to over $276,000.

The increasing prices are a direct result of increasing demand. As many of the main centres in New Zealand are experiencing continued growth in house prices and valuations, Dunedin is presenting itself to many as an attractive option. With the average house price in New Zealand just a little under $410,000, properties in Dunedin represent real value in the marketplace where many families are struggling to find suitable and affordable housing options. According to Glenda Whitehead from QV Valuations, some of the increase in market activity in Dunedin is due to a rise in purchases by existing homeowners, who realise the benefits of purchasing prime real estate at well below national averages.

There are many advantages to purchasing Dunedin real estate, apart from the scenic and natural beauty that the city is surrounded by. With the security of tenure, you will be able to enjoy the cycle of the real estate market, accessing capital gain as the property naturally appreciates. If, like most kiwis, you enjoy a little do it yourself (DIY), then additional capital gains can be achieved through renovations. There is nothing like the sense of pride that comes with homeownership. The freedom and ability to personalise your property to suit your tastes and requirements has long been an aspiration of nearly all New Zealanders. However, with the current price hikes in property prices, renting is fast becoming a reality for many who cannot afford the deposit or repayments on their first home. However, Dunedin is offering the consumer real value and choice. Why not consider a move to a new place, where the people are friendly, the amenities are first class and most of all, your dream property is within your reach.

Is There A Slump In Gurgaon Property Market Now

Property blogger

Reportedly, there is a little slump in the Grugaon properties market now, though its magnitude is not alarming. Going by the industry assessments and reports, the nascent recession in the economy and its all-pervading sway is still keeping a thin pall of gloom in the residential as well as commercial segments of Gurgaon real estate market. In fact, the world economic meltdown started from the largest economy of the world, the US, and it has spread as shock wave across the global spectrum cutting across national and continental economic regions. As an inevitable corollary and consequence of this malady, the Indian economy has not been able to remain immune and has been affected to some extent. This has crystallized in to the economic matrix of the Gurgaon property market and market has been in jittery for long. However, now along with the recuperating national economy, Gurgaon property sector is back in the saddle, a little hang over notwithstanding.

It is an estimated fact that there is a little slump prevailing in the Gurgaon property market now. Let mathematics speak. Before the onset of the recession, property for sale in Gurgaon fetched an annual average appreciation of 15% to 20% in the prime residential locations of DLF Phase1, DLF Phase 2, DLF Phase 3, Sector 15, Sector 16 and sector 18. However, right now properties of the same description in the same locality do not show any considerable appreciation over what they could fetch before the incidence of the recession. In order to appreciate the real appreciation value, the analysis should be in the light of the escalating inflation. In fact, the prices went down during the recession. If the current rates are compared with the immediately preceding trend during the recession, there is an increase in prices from10% to 20% per cent now. But when we compare it with the prices before the recession, the current prices are a little less and that is indicative of a slight slump.

The little slump in the Properties in Gurgaon market is estimated to be of a transient phenomenon and the market will enter a growth trajectory in the immediate future. International investment analysts concur that the coming years the Indian property sector as a whole will show an appreciable growth. This speculation is in resonance with the finding of the World Bank that in a scene where the major world economies show a retrograde trend, in the coming years India along with China will show considerable growth in national income and gross national product. This growth in the national income will directly push up the real estate sector. Hopefully, Gurgaon property market will register considerable appreciation in the coming years.

Should I Buy New vs Existing Property

Property blogger

The most common question that hogs every home buyer is the choice between a new vs an existing property. Both have their share of advantages and disadvantages. A thorough research is needed to get a good property deal. Moreover since you buy a house not once or twice a year, you need to look at all the aspects and get your dream home. To make our choice easier, the VP of Real Estate Guidant, Sangeeta Shah, explains us the advantages and disadvantages of new and existing home. One of the main reasons that gives a new home benefit over an old one is less maintenance and remodeling cost and efforts. A new property will not need any renovations or modifications for atleast first couple of years. The walls, the landscape, the garden, the flooring all bear a fresh look. A new home also promises modern amenities and facilities unlike older properties. Another most important reason that new home score well over old home, is good resale value. If you are looking for a short term goal or have an immediate plan of selling the house and moving in a new one, then a new property surely fetches you more bucks. If you wish to settle in with a new property, just make sure that you do not have budget constraints. It is understandable that a new house is more expensive as compared to an old house. However, if budget is restricted you can settle for an old property. Apart from budget, an old house also has its share of advantages. One of the main advantages of an old home is an established neighborhood. You know how your area looks like, you know about your neighborhood, schools, cafes, eating joints and the facilities your area offers. Old homes also have bigger and better space area. They have sprawling gardens, bigger rooms and slightly traditional interior that give a royal feel to the house. It can be said that it is an entirely personal call to choose between old vs new property. Just look deep into the factors that you believe the most and decide thereby. The choice is between maintenance cost vs higher price and resale value vs space. Make a wise choice and enjoy living in the home of your dream.

Article written by Dravya Kapoor, International Real Estate Consultant nt

Determining Commercial Property Market Value

Property blogger

Determining commercial property market value varies greatly from determining residential property market value. It is vitally important to understand the differences to avoid common pitfalls.

Article:

Here in the United States, “fair market value” on any item is determined by what a buyer is willing to pay a seller for the item. Simply put, if I have a stick of gum, and I offer it to you for ten cents, and you want to purchase it for ten cents, then the fair market value of the stick of gum is ten cents.

While real estate also has a fair market value, it is a bit harder to determine because of all the factors which go into the valuation. A property, unlike the simple stick of gum in the above example, has multiple aspects for a seller and buyer to put different valuations on. Introduce a lender into the picture, and then you have a third option on valuation to deal with as well.

Determining commercial property market value is different than determining market value for a residential property. In a residential valuation you can simply look at other recent comparable sales in the area, of similar homes and lot sizes, and determine about what a property is worth at any given time. The issue you will find with commercial property is that they tend to be one-of-a-kind properties, and you may not be able to find many local comparable sales in recent times.

One major difference between residential and commercial properties is their location and their use. If you own a large lot inside of the city limits, with a huge warehouse store built on it, with a 10 year lease to a big box store, then you have a very valuable property. If you have the same lot size, with the same store on it, same lease, but it is located 30 miles from the only local town where most people in the area live, then you have a lesser valued property. Location, also known as market area, is more important in commercial real estate because businesses need to be near to their workers and to their customers as well.

Another consideration when looking at market value of a commercial property is the availability of similar properties on the market. By looking at as many properties as possible, you can start to get an idea of what different properties are selling for in your local area. This gives you some leverage to point out differences and better negotiate the price you are willing to pay. This will also give you some idea of how difficult it will be to find a tenant for your property.

If you are tying to determine the market value of a piece of commercial real estate, one of the factors you should always consider is how well other properties in the area are renting and what they are renting for. You will need the rental income to cover your investment funding as well as your day to day costs of owning the property. If you purchase a property at an agreed upon price, will the rents support the costs? What if your property sits vacant for a month or two? These are things you need to think about prior to purchase.

When trying to determine commercial property market value there are many factors which come into play. The biggest being the market area, local property costs, rental income potential, and the property condition itself. By determining what you are willing to pay for a property, and having a professional commercial real estate market analysis completed for you, you can avoid many of the mistakes new commercial property investors make.

** About the author :

The KISCL program, http://www.kiscl.com/, uses the resources of seasoned real estate pros to help you determine commercial property market value and much more. The commercial market is strong and a great way to increase your bottom line. Learn how to quickly develop realistic financing options.

How To Build Equity With Commercial Property Investment

Property blogger

Equity is Money

Building equity is the primary if not the ultimate reason to buy instead of rent a commercial property. Let’s face it. It’s money in the bank. In fact, it’s better than money in the bank because you can’t get the same kind of return on your money when it’s sitting in the bank as opposed to when you’re building equity. Moreover, if you choose the right financing for your commercial real estate purchase, you can not only build equity through ownership, but you can also leverage your capital saving in order to grow your business, hire additional employees, or even purchase an additional location when the time comes.

Owning beats renting because you can sell your investment once you outgrow the space or sell the business. Even if commercial property in your area has not appreciated (which is unlikely), you can recoup your investment by renting out the space once you move out and by selling when the time is right.

If you plan on growing into your building, buy something larger than your current needs, and rent out the extra space until you need it for expansion. This will provide you with steady income that you can use to help pay your commercial mortgage loan or invest in your business.

Leasing the Land

Most commercial real estate is what’s called fee-simple. The buyer buys the building and the land, and has owner title to both. But while you might assume that you’ll be buying the land a building sits on, you may not have this option.

Some landowners choose to lease their land to a business that then constructs buildings on the leased land. The business owns the buildings, but not the land.

The disadvantages to “leasing the land” are the following:

* You own a building on land that you don’t own.
* You have to pay rent on the land.
* You may have rent increases over the years.
* You can’t do with the land as you please.
* You can’t sell it, give it away, lease it to others, trade it or leave it to loved ones upon your death.
* You are not building up equity in the land over time.
* You may be forced to move out when you’re not ready to do so.

It is usually in your favor to have a fee-simple arrangement where you own both the land and the building. This gives you more control over your property. Owning both the land and the property keeps things simple and you only have one person’s interests to consider: your own.

The first step is clearly defining what type of property you want to purchase and how you want to use it.