Category: Property Investment

The property market has grown into a major attraction for potential investors. More and more people are getting their financial muscles into this business with a big number of commercial property transactions being inked every day.

When you buy property, you do so with the expectation that the investment will pay off. The real estate business can sometimes prove to be a little bit tricky, if you don’t do your math. This is why the first thing to do when buying or selling property is conducting its valuation. This can greatly save you the cost of misappropriating your capital on a misguided venture or getting ripped off. Also, the valuation gives you an insight into the commercial property market in the area and help you understand its dynamics and plan on future growth.

The challenge comes in when you have no idea how to value the property. In that case, worry no more. The following information will help you do your commercial property valuation with relative ease.

How To Value The property

These are the major things to look into:

The amount of rental income: The value of any property is directly proportional to the rent payable. Knowing the amount of rent can help in estimating the value of the property. It can also be of good help when you want to approximate the rate of property appreciation in the area.

Security: Determining your investment security involves balancing its returns against the associated financial risk. As an investor, you would feel more comfortable committing more resources in a more secure investment than a less secure one. A secure investment gives an assurance of getting your money back in any case.

Estimated Value of the surrounding property: With property valuation, the location is a big determinant. It has the potential of pulling the scale of value on either side. By being informed on the value estimates of the property in the area, you stay ahead in estimating the value of the involved property even before you do the actual valuation.

The Trend: If more people want to buy property in the area of your interest, the demand rises along with the cost. This pushes up the value of the property. Having a simple clue on this issue proves resourceful.

These simple tips can come in handy any time you get down to value your property whether you want to buy or sell.

Property investment can be a mine field. As such, choosing a property to invest in has to be based on price, location and most importantly, and sound research. You should try as much as possible to keep you emotions out when you are buying property. You are not searching for a property that you will have to live in, so numbers should be your number one concern. Here are some pointers that will get you started.

First and foremost, you should treat it like a business. Property investment should be a business decision. You may end up choosing to take charge of the management of the company or contract it to someone else. Whichever the case, you should remember that it is a business and all the taxes, loans and maintenance will have to be recorded and kept accurately.

Another factor that you should consider is the location. This cannot be stressed enough. This is because the location affects the price of the real estate a great deal. You should avoid as much as you can not to get property in an area that might make you run at a loss. Research thee market and ensure that it has demand.

You should also look for features that you know are attractive to tenants. For example, if you are thinking of getting an apartment, does it have a balcony a double garage or an internal laundry? You may not receive the tenants immediately or you may be looking to replace the ones that have already left. You should ensure that you have a period of at least three weeks in which you will have renovations to maintain your property.

In addition, you should ensure that you have attractive rates depending on the area that you have the property in. this will need \you to do some bit of research of the area.

These are just some of the rates that are bound to see you be successful in your property investment.

Jaipur, India’s pink city has recently been experiencing an upsurge in the city’s real estate industry. Jaipur is one of India’s planned cities and it is located in close proximity to India’s capital city of Delhi. Most of the potential homeowners are attracted by the budding property market in Jaipur. Property is more affordable in Jaipur as compared to India. The rapid growth in Jaipur’s property market can be attributed to factors that include:

The planned city structure upon which Jaipur is built -This means that the city’s foundations had been thought out ahead of time and all the mushrooming buildings had also been planned for. The planned city structure ensures that all property is erected according to set standards and it also prevents the emergence of slams which often arise from congestion and building of unplanned structures.

The city is closely connected to Delhi – This makes Jaipur attractive to property developers and potential home owners. The distance between Jaipur and Delhi has been shortened by the creation of the Delhi-Jaipur highway which connects the two cities.

Jaipur is rich in culture and heritage – This attracts tourists to the city and this in turn attracts property developers to develop property in the city to host the visiting tourists.

Low property cost in Jaipur – The low has attracted property developers to develop property in Jaipur. Investors and home owners have also been attracted to invest and buy into Jaipur’s property market.

The housing facilities and global living standards in the city of Jaipur continue to attract tenants from different cities in India.

The booming IT and IPO business in Jaipur continues to attract property developers to erect buildings for modern commercial spaces. This also contributes to the advancements seen in Jaipur’s property market.

The above mentioned factors have contributed to the upsurge being witnessed in Jaipur’s real estate industry. And this trend in the property industry is estimated to continue far into the future.

With the hard economic times hitting the real estate market and a number of homes for sale in the real estate market, buyers are having a hard time finding good houses to buy at reasonable rates. But there are a number ways to go about on how to be a smart real estate buyer as outlined below.

Make a List
It may not be easy to make up you mind in this step, you need to be sure what your real needs are when it comes to home investment. Many buyers end up having too many wants instead of sticking to their main needs. The more items a buyer needs the hard it will be to locate them thus they end up missing potential perfect properties.

Study the Property Zone
While property rates remain stable in certain areas, in other areas rates and sales have dropped more than 30% over a couple years that have passed. Be sure to buy a home in a neighborhood with steady sales record.

Work with Professionals
Real estate buying process is not an easy task. Do not explore the unstable real estate market on your own. A qualified and licensed real estate agent can have the current sales figures to assist buyers find the home they need at reasonable rates.

Find out your Credit Score
Your credit history and credit score are crucial. Strict underwriting rules have been put in place to the type of loan programs you can access and have a chance of getting. Know the right tactics, the higher your score is, the higher the chances of qualifying for a loan.

Avoid Procrastination
In the current market, a smart home buyer will not sit and wait until the prices go up. Your agent can easily get information and advice you on how long a property has been in the market and how the seller will easily consider your offer. If you wait until the rates are up again, chances are that you will pay more and have no room for negotiation.

The real estate market has seen ups and downs all around the globe. However, there are still flourishing areas where the real estate bubble has not popped yet, and it doesn’t seem to be getting any close. Property investment in Jaipur is a recommendation from most specialized realtors, as the area has seen tremendous growth over the last 3 years.

Industry development and the rise of Jaipur as an IT Startup center, along with infrastructure increase is making it one of the most appealing destinations for companies, manufacturers and investors.

Property Purchase Pros

The residential and industrial properties available for someone to buy are still diverse, with many advantages, if chosen properly:
A property approved by the JDA (Jaipur Development Authority) has more value and increase prospects over the years;

Investing in a smaller lot, house or apartment in the Jaipur area creates a wider range of customers from which 2 income possibilities appear:
The property’s increase in value over the years
Rental income

Residential advantages: since Jaipur is the fastest developing metropolis in the country, the industrial projects go hand in hand with residential ones. At the same time, parks, recreational opportunities, educational institutions and commercial ones are growing at the same rate

Jaipur’s property value growth is rated around 10-15% annually, making it possible for a somewhat fast passive income.

Real Estate Investment Cons

However, even if there are great advantages to property investment in Jaipur, there are also downsides one must be aware of before making a purchase:

The electrical, drainage or street light systems often have issues, so if the purchased property is not located near a VIP person, there might be problems or even delays in fixing a problem.

Corner and property with Vaastu are a priority. The Indians are highly religious people, and finding a property that doesn’t enable their beliefs or rituals could be hard to sell in the future.

Road or industrial expansions: the biggest threat to a Jaipur property investment is the possibility that the government might want that lot for road expansion or other type of development. That means the property will be bought by the Indian Government at a fraction of its market value.

Construction quality: A developer’s catalogue of properties, apartment buildings or houses may be impressive. But no purchase should be made without verifying the property in person. Bringing the family or other future residents is advisable, as well as an independent civil engineer who might asses the quality of the building.

Investing in a Jaipur property is still considered a deal, especially for those planning to increase their income by selling in a few years. However, commons sense must dictate the decision made, and not just the “rush for gold”. Success will follow.