Month: August 2018

Commercial Property Loan How to get it Approved

Property blogger

Commercial Property loan is obtained through several basic requirements that are somewhat different from the residential mortgage loan requirements.

When you invest in a piece of commercial estate, you generally have to take out a mortgage to pay off the cost, just like with a residential purchase. Yet, the factors determining whether or not you will be approved for an investment property loan are somewhat different and the requirements are more demanding. Commercial mortgage lenders will look at several financial aspects including a property appraisal, a credit check, the down payment, and the Debt Service Coverage Ratio.

A property appraisal is required to determine the market value of the commercial building and accompanying land. The appraisal keeps the lender from inadvertently loaning you more money than the real estate is worth, thereby reducing the risk of loss for the lender. Appraisals are also conducted during residential home purchases, but the price-deciding factors are different. A commercial property’s value is based not only on the condition of the roof, the plumbing, and other systems, but also on the size, location, and accessibility of the place.

With an investment property mortgage loan, you will also need to demonstrate a good credit record. Of course good credit is a plus in residential mortgages, but because commercial properties generally cost much more than the residential properties, the credit requirements tend to be more stringent. In addition, checking your credit history and score, lenders will want plenty of income and asset documentation to make sure you will be able to make your mortgage payments. If it is your own business that will occupy the business space, the lender will want the proof of the profitability of your venture.

Down payments are another determining factor in whether or not you will be approved for a commercial property loan. In the residential world, borrowers can often get away by contributing very little and sometimes even nothing up front in the form of a down payment. The big price tags on official and business properties, however, makes lenders very cautious as the risks are much greater. Large down payments are usually required for an investment property mortgage loan, with the minimum being 20 percent of the price. In many cases though, the average seems to be a down payment of 30 to 45 percent. You are then provided with the loan of the remaining amount of the purchase price. The amount you are loaned compared to the actual price is called the Loan to Value ratio (LTV) and is a very commonly used percentage in the mortgage world.

Finally, you will be approved for a mortgage based on the Debt Service Coverage Ratio (DSCR) of the commercial real estate. This is the amount of money the realty generates each month from rents and other fees (the net cash flow) versus the amount of the monthly mortgage payment (the debt service.) This ratio helps lenders to determine how much you can reasonably afford to pay on your commercial property loan each month. Most like to keep the ratio between 1.1 and 1.4. A ratio of 1.4 means that for every dollar you pay in mortgage payments, your property should be generating $1.40. Your revenue would therefore be larger than your debts, and you would theoretically be able to repay your loan.

Certain commercial lenders may have additional loan requirements, which are not listed here, but the basics remain the same for all. Be sure to shop around and ask each lender how he or she determines its approval. You can be competitive in the commercial property loan market by doing your homework and coming fully prepared to the negotiating table.

Acquiring commercial property loan is not an easy task as there are many stringent and basic requirements to be fulfilled prior approval. For detailed information on investment property loan and lucrative commercial property dealings, you can visit, http://www.kiscl.com.

Questions To Ask When Renting Commercial Property In The West Midlands

Property blogger

If you need to rent commercial property in the West Midlands then you’ve got a lot of choice for areas to find property. The area has a rich history of industry and so many types of buildings are available, however, where ever you decide to rent, it is important that you ask your agent the right questions, so you understand everything about your rental agreement.

Who is responsible for what?Internal and external maintenance: Find out if it is you or the landlord who is responsible for wear and tear on the property, both internally and externally. Also try to find out what is classed as wear and tear.Meeting the standards: Find out if the building meets the standards for health, fire and safety and that it has any certificates you need. Also find out who is responsible for maintaining and checking these standards.Insuring the building: Find out if you’re responsible for the building as well as the contents insurance. It may be included in your rental fee.Getting the correct classification: Find out that the building your intend to rent has the right classification to run the type of business you intend.Disabled access requirements: Find out if it is you or landlord who is responsible for making sure the building meets the required standards.Your rent and what it coversWhen and how it’s paid: Find out when and how the rent should be paid. Also find out what happens if your payment is ever late.Your deposit: Find out how much your deposit is, but also the terms of claiming back your deposit at the end of your tenancy.What’s included: Find out what your rent covers, for example, business rates, site security, share facilities, cleaning services etc.Possible changes: Find out what possible rental reviews there will be in the future.The premises itselfRestrictions on usage: Find out if there are any restrictions on how you can use your building, for example, are you allowed to sublet.Access: Find out what access you have or don’t have, and whether this might restrict the running of your business.Security: Find out what security is available for the site and whether it’s up to standard and how it’s paid for.Ending your lease

Even though you’re just thinking about starting your lease, you need to think about when it ends too.Break clauses: Find out if you should break your lease early, what penalties are levied.What to do next

Now you know what questions to ask, it’s time to start contacting some agents to find soem West Midlands commercial property and see what’s available on the market.

Buying A Property In Ghaziabad Why And Why Not

Property blogger

Aptly called ‘Gateway of Uttar Pradesh’, Ghaziabad is one of the well-planned cities of Delhi NCR. Rapid pace development has awarded it with the distinction of world’s second fastest growing city in the world. Situated strategically over National Highway-24, the the city has clearly got the location avenged. At present, a large number of realty projects are under-construction in the stretch connecting Delhi border and Dasna; it has kept Ghaziabad in radar of real estate buyers and sellers. With the proposed widening of NH-24 from 6 to 8 lanes, the traffic-flow would become smoother and hassle-free in the time to come.

Seekers of property in Ghaziabad are gong to get benefited by expansion of Delhi Metro. Currently, it is served by Vaishali and Kaushabi metro stains. With the expansion, the commutation time to and from Delhi will be further reduced. By 2017, the rail line is expected to reach up to one of its prime colonies, Indirapuram.

The 21-km Noida Ghaziabad link road is under-construction. Developed as part of Noida Master Plan 2021, this stretch shall reduce the commutation time from Delhi to just half an hour. This 75-m wide link road has garnered the interest of prospective buyers of Ghaziabad property. A series of constructions are on their way, and it is expected to become one of the high-growth areas of the city. With big metros of Delhi NCR fastly reaching their saturation level, in terms of future constructions, Ghaziabad comes as a fine alternative options. The rates are still reasonable if compared to Delhi and Gurgaon.

But on the downside, there are a number of factors that have balked its full-fledged growth. Poor infrastructure, high rate of lawlessness, and poor amenities are some of the adversaries that need immediate attention. There have been reposts of framers’ agitations against authorities: they are up in arms against the private planned townships that are to built over the land owned by them.

The current residents of Ghaziabad are facing a number of civic amenities problems. Some of the residents living in high-rise buildings have been slapped with abnormally high water bills. In spite of the fact that theses colonies have no supply of Ganga Water, they have been issued lofty bills. Then, there are other problems like sewage blockage and overflow.

A lot needs to be done on pay of government authorities. Till then, the prospective buyers will have to harp only on improving connectivity and afford ability factors.

Best Locations In Bangalore To Buy Residential Property

Property blogger

When you think of buying a residential property in Bangalore, the choices are many, ranging from simple one room house to independent villas. But, choosing a location can be quite a cumbersome task, as you have to choose a property that suits your needs and your pocket too. The price of a property depends on the type of the property and the location. You will need a bigger pocket if you are eyeing the central areas that are well connected and located in the heart of the city. Or, if you are satisfied staying in some interior part of the city, you don’t need to worry much about the expenses.

The most popular areas like Brigade Road, M.G. Road, and Cunningham Street etc. are mostly known for their commercial importance and it’s a mammoth task finding a house in these areas. Apart from that, there are some residential areas as well, that may not be as pocket-friendly as you want your desired locality to be. For example, Sadashiv Nagar, Whitefield(Villas), Off Cunningham Road, Off Palace Road etc that are known to be the abode of the affluent.

Following is a list of stylish, well-planned residential areas in Bangalore that are well connected and yet, are average budget localities:

Indira Nagar-Located within a diameter of few kilometers from Domlur airport, the area is well connected to rest of the city. It can boast of several renowned hospitals and educational institutions as well. There are a number of shopping options in addition to nearby pubs, bars, restaurants, gyms etc. The area can be classified as an average budget area.The average price and rent for apartments in this area is Rs.4736/sqft and Rs. 16/sqft respectively. The price for residential plots, on an average is Rs. 8935/sqft.

Koramangala-Reputed firms and business houses, renowned educational institutions, St. John’s Hospital and a number of shopping centers and malls, this area is surely a very good option to settle down. Criss-crossed by many roads and near to Indira nagar, the area doesn’t seem to be facing any sort of connectivity issue.The average price and rent for apartments in this area is Rs.4614/sqft and Rs. 18/sqft respectively. The price for residential plots, on an average is Rs. 6570/sqft.

Banshankari- A medium budget locality at about 15 Km from railway station and 25 Km from the airport, the major connecting road is the 100 feet ring road. There are a number of new projects developed recently or under development in the area.The average price and rent for apartments in this area is Rs.4232/sqft and Rs. 9/sqft respectively. The price for residential plots, on an average is Rs. 3693/sqft.

Jayanagar- Lying close to Banshankari, Jayanagar is a well developed residential area with a cosmopolitan setup. There are a number of shopping complexes, educational institutions and some of the most famous food joints, e.g. Mughal Darbar, Taj Darbar, Blue lagoon etc., in the area.The average price and rent for apartments in this area is Rs.4974/sqft and Rs. 15/sqft respectively. The price for residential plots, on an average is Rs. 10167/sqft.

Malleshwaram-It is one of the greenest localities of the Garden City. The place is naturally beautiful with the lush greenery all around.The average price and rent for apartments in this area is Rs.5223/sqft and Rs. 16/sqft respectively. The price for residential plots, on an average is Rs. 8312/sqft.

Marthahalli- Close to Whitefield and Sarjapur, the area is well connected and offers lots of new projects as well, to choose from. It is again a medium budget locality.The average price and rent for apartments in this area is Rs.2617/sqft and Rs. 12/sqft respectively. The price for residential plots, on an average is Rs. 2863/sqft.

BTM Layout-Located in the southern Bangalore, the area houses the IIM. It is a well planned residential colony with developed road system and separate market place.The average price and rent for apartments in this area is Rs.3174/sqft and Rs. 12/sqft respectively. The price for residential plots, on an average is Rs. 5110/sqft.

Madiwala- An area for small budget home seekers, Madivala is one of the most crowded areas of Bangalore. Though the interiors of the locality are not comparable to those lying in the vicinity, it is nearby to BTM, Koramangla, and HSR Layout areas.The average price and rent for apartments in this area is Rs.2785/sqft and Rs. 12/sqft respectively.

HSR Layout- The area is well connected to Whitefield, Marthahalli, and Electronic City, where most the offices are located. Well connected to the city and better infrastructure makes it dearer. You can find any number of medium budget houses in this locality.The average price and rent for apartments in this area is Rs.3351/sqft and Rs. 12/sqft respectively. The price for residential plots, on an average is Rs. 4402/sqft.

K R Puram- Krishna raja Puram or K.R Puram is well connected to the city. You can find hundreds of flats in this area, depending on your needs and budget.The average price and rent for apartments in this area is Rs.1796/sqft and Rs. 10/sqft respectively. The price for residential plots, on an average is Rs. 1151/sqft.

Investing in Property in GST Road

Property blogger

GST road, abbreviated for Great Southern Trunk road or NH 45 is a 4 lane highway connecting Chennai and Trichy in the south. This is the major road artery between Chennai, Tambaram, Dindigul and Theni, a total of 472 kms. GST road enters Chennai from the South and connects its southern suburbs with the international airport. Though the highway has heavy traffic flowing through it, there are several motels and restaurants along the entire stretch, including five-star hotels such as Le Royal Meridien, Trident Hilton and Radisson GRT near the Chennai International Airport. The GST road is now planned to be upgraded to 6 lane expressway, making commuting easy from the Chennai suburbs to the CBD in Chennai. This has generated lot of interest by realtors and investors alike in Property in GST Road.

Some of the major advantages of the GST road are:

1. The main railway line runs parallel to GST road thereby providing excellent connectivity infrastructure.
2. Touted as “New Chennai”. It is an area which is developing rapidly because of many industries and educational institutions setting up their base here.
3. The road is parallel to ECR and the IT Corridor
4. Areas alongside the GST road have lot of industries, educational institutions, SEZs, residential areas, Commercial establishments, etc. This has made investments in Property in GST Road a wise decision.

SRM University has set up a large campus on the GST road at Potheri, which is the largest. Mahindra world city is another big landmark in this area, which has some of the largest corporate organizations based inside. ESTANCIA IT SEZ is a notified SEZ and the first project of its kind in Chennai, providing a totally integrated township for discerning IT professionals to work and live, away from the congestion and pollution of the city. This has resulted in migration and people taking up apartment’s initially on lease and then buying Property in GST Road. Located on the GST Road in Guduvanchery, a 20-minute drive from the airport, it is spread over 82 acres.

Surrounded by lakes and hills it is a peaceful and pollution-free environment. Adding to the natural beauty are the landscaped campus of Estancia, serene and environmental friendly, to accommodate around 50,000 people. It will have residential, commercial and IT offices inside, providing a unmatched living standard. Average prices of apartments on GST road are Rs 3400 per sft which is quite reasonable.

About The Author:
The author is a prominent real estate consultant and is an advisor to some of the leading real estate companies in India. For more information on “Property in GST Road” visit .