Property

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.

Why Do You Need To Employ A Property Management Company To Look After Your Investments

Property blogger

Buying a new house or property for your self is different than managing several. People nowadays like to think that they are capable of doing everything and everything well. That is not true when you have to juggle several responsibilities on your day to day life. Many of us do mistakes and regret it later. To manage your properties in the best way possible, you should consider hiring a property management company. There are several benefits for you in store if you sensibly hire a management company. In recent times, one can see that there are numerous property management companies in the market available today. All you need to do is choose and select a good company that is best suitable for you.

Selecting a good property management company can be tricky. Thus, take your time and do a little bit research about such companies beforehand. With the help of computers and internet services, you can check about these companies at any time you want and from anywhere you would like to. Just type the keywords in the search box of your homepage to get good results. Remember to mention the name of the place you need a management company for. For example, if you are looking for property management companies in the San Diego area then you can simply type San Diego property management or San Diego property management companies. Once you click the enter button, you will get several links under San Diego property management company. You should read and research about several companies online before selecting any one.

A property management company does not come cheap but the price is well worth it. They relieve you off your burden and look after your investment. A property management company shoulders a lot of responsibility for you. They manage and deal you with tasks like selecting an appropriate tenant for your property, collecting rents and payments from them. They will also check your property on a weekly basis to see if there is any repair or work needed to be done. In simple words, they manage and look after your investment in a very thorough manner.

The work and responsibilities of a commercial property manager and a residential property manager are different. A residential property manager is best suitable for owners when they live far away from their investments or properties. A property manager ensures you that your property would not be neglected. To ensure that your property will get you high income, you need a good property manager.

The Burgeoning Stage Of Commercial Property In Noida

Property blogger

Some important steps that one should take consideration while purchasing. Ist is you should verify the authenticity of commercial agents if you are buying property from them. You should get in touch with those real estate agents who have been popularly known for their work. The agents who promise maximum benefits to you through their excellent investment programs are the best for you. After contacting an agent you should clearly describe them of your financial stated so that they can find a proper commercial property for you. Because Delhi is a metro city also and there is much scope to earn money therefore more and more people come here to settle here. So the demands are more for service apartments is more and the required quantity is less. Hence the property rates are beyond the reach of middle class persons budget as the same is touching the sky. But Government has introduced many policies to control the prices of the high rising service properties.

Even you should keep both eye on the intention of the commercial agents so that he doesnt take undue advantage from you and doesnt even allow you to waste your resources .The commercial property Noida currently holds an important position and plays a significant role in countrys economy. The commercial property has developed in the city of Noida. Commercial property has become a major area of business. With the development of business and metros in Noida renting commercial property has become an important way to generate your income. Before investing your money through agent commercial property in Noida there is few important points that we should always keep in mind. Middle income groups will look out for affordable homes. Other important factors are location of offices, water avaibility and even electricity availability.

There are many factors responsible for the burgeoning stage of commercial property in Noida. Some of the leading factors responsible for this are increase in population, opening of metros, introduction of Government policies, the rise in the tourism industry of India. Even nowadays the income of the youngsters is rising and therefore they could afford to buy more and more commercial properties. Even banks provide loans which helps a person to take loans to purchase their own property. Banks have slashed down the interest so that a person can take loan from a bank. These investments banks take your money and invest them in the new projects of the real estate companies operating in India.