Saturday, 27 August 2016

Own or Lease the office space?

Own or Lease the office space?
Many small business owners can only manage to lease office space when they are just beginning and that rent often dominates a large portion of their monthly budget. Nonetheless, money is not the only reason to choose to rent over owning.

Why is leasing advantageous?
·       No down payment needed – Generally, you need a down payment to purchase a property, which drains a big portion out of your cash reserves. Leasing let you invest this capital in expanding your business and keep the option of purchasing open for later when your economy is stable.
·       Repairs are handled by property management - When you lease space if the AC breaks, you will just have to call the property manager and wait for someone to repair it. On the other hand, if you own that space, you will have to spend thousands of dollars on repairs each time something big fails.
·       You have short-term choices – While your business grows, it may extend out of its space. By signing a lease of 1-5 years, you will have the option to move to a new spot as per your needs. Leasing also provides you the opportunity to try an area or town to determine whether it is a convenient place for your staffs and clients.
Some ownership risks are:
·       Ownership of real estate needs real estate expertise, resources, and time.
·       It is less flexible than leasing in contraction and growth.
·       The possible loss in asset value.
·       Interest and economic rate risk.
·       The risk associated with transportation issues, neighbourhood quality and demographics.

You should consult with a real estate adviser or a tax professional, to see what fits you best; owning or renting.

Sunday, 21 August 2016

Risks Factors Associated With Commercial Property Investment

Like other issues in real estate investment, the argument on whether to invest in residential over commercial continues to separate investors. Potential investors say that residential is a least risky option and those in favor of commercial would argue that commercially is better due to its probable cash flow.

Some risks in commercial property are:

·       Commercial properties are conscious to financial conditions - When the economy is stable, businesses prosper and demand commercial properties typically increases. But when there is an economic shutdown, the demand normally falls.

·       It takes the time to find a tenant – Although commercial properties attract long-term leases of 3 to 5 years or more, it can take even longer to find a tenant. It is not unusual to face long vacancies; it means you need to handle all the cost during this term.

·       It is vulnerable to changes - Increase in new construction coming on the market in the same locality creates a threat, as tenants may look up to upgrade.

·       Changes in infrastructure in the area can be adverse - Major infrastructure changes in the locality can not only attract commercial investments but can also allure tenants away from older commercial bounds. This results in the property becoming vacant.
·       Values can drop sharply–When a commercial property becomes vacant, or the lease expires, the price of the property is generally expected to fall.

If you want diversity and a cash flow injection, a proper-located commercial property might be a good option. But ensure to be alert and understand the risks involved.

Saturday, 13 August 2016

Real Estate vs. Traditional Investment

How reliable is Real Estate investment when compared to other markets. Here are a few comparisons with other markets where people invest in:
Stock Investment
People put their money in company stocks and shares and enjoy profits. But then there is a huge number of investors suffering a loss in the same market. The risk here is the instability of the market. The price fluctuations in the stock market are more frequent and destructive to your savings. Any additional government tax or other market conditions can end you up in debts than profits
However Real estate is a long-term investment, it is highly secure from the above-said dangers. It is, in fact, a less stressful job that doesn’t require you to keep daily tabs on the market fluctuations.
Precious Metals
Silver, Gold, Platinum are less risky to invest in. Investing in precious metals is a wiser choice when the market is unstable.However, Bullion or buying of precious metals is a stressful job too as you need to wisely choose how much money you’re going to spend and in what commodity it is being put in.
Real Estate here again scores a point due to its price stability and more relaxed nature of the investment.
Bank Savings
For smaller savings, banks might be a good idea. But investing money in the real estate promises you better returns over a period of time.

Thus, real estate market, despite having its own issues is a safer choice for investors of any age group and is less of a headache for the investor.

Real Estate : Title Search

After you make your decision final about purchasing a property and arranged all the financial support for the transactions, first and foremost you need to run a title search for the desired property.

What is a ‘title search’?
In real estate, there remains a risk involved in the ownership of the title to the property. A real estate title is a bunch of rights that the property owner enjoys. These rights of the owner include- living in, selling the house or giving out for lease. The deed is a contractual paper that transfers these rights to the title from one owner to the other.

Step by step procedures of title search:
  • ·       Chain of title –The history of ownership of the property that gives the information about who bought and sold and when. Information is obtained from public records or private title plants.
  • ·       Tax search –This reveals the present status of the general taxes against the property. It reveals whether the tax is current or it is due from any previous years.
  • ·       Report on possession –Inspectors are sent for a site visit to verify that all information provided by the public records are true and will not affect the owner’s title and intended use.
  • ·      Name search and judgment –It is to verify whether there is any unsatisfied judgment against the previous owner when he owned the title. This raises the question as to whether the owner and the seller are the same people.

After the above formalities, the title company will issue a commitment to state the conditions under which the title is insured. 

Monday, 8 August 2016

Social Media Benefits for Real Estate

People might keep debating over the adverse effect of social media on our daily life and the life of those around us, yet there some credits which even they can’t deny. Social media has not only made our social life more dense reachable but also has affected many other aspects of our life. And some advantages of it can be seen in the commercial domain.

As far as real estate is concerned, here are a few points where social media has certainly gained points:
1. Know your Clients
The interests of your potential buyers, the likings of your investors and much more information can be accessed through the social media platform. You might need to choose the right website for the right task. Like Facebook for residential or LinkedIn for Commercial properties etc.

2. Studying the Hashtags
Hashtags keep the tab of almost everything posted on the social media. More a particular hashtag is used more the related topic is trending. Proper knowledge and usage of hashtags may help you know the market as well as your clients.

4. Client Relations and Reviews
Apart from attracting them, social media also helps you in maintaining your relations with the clients. As a matter of fact, a well-maintained social media page can serve as a potential small scale website for your business. The reviews and discussions by the clients also help you improving your marketing plans.

Thus, if properly used, social media can serve as a resourceful tool in the Real estate market or any other commercial field for that matter.

Commercial vs. Residential Properties

The suffix “properties” is the only thing common between commercial and residential properties. It is not until we get in deeper, that we get to the actual perception. Here’s a few differences between commercial and residential properties you should know:

1.      The name says it all
As the word “Commercial” suggest, these types of properties are more focused on the business gains they can cultivate. It always has a financial motivation to follow and based on that, the related processes are designed here. On the other hand, residential properties are more personal oriented. As the residence is the prime intention for these, they are more focused to provide a “live-able” environment to the buyer.
2.      Selling Differs
Selling a commercial property is a game of numbers. Careful calculation about the potential profit from the property is the prime stimulus in this case. Residential properties are more towards appealing for the emotions. The buyer’s willingness to invest depends on how homely he feels it to be.
3.      Different Domain Different Agents
For residential properties, the sellers represented by the agents generally don’t have more than fourplex properties.Even for the buyers they’re looking for just as much or less.The commercial property agents on the other hand need to have some additional knowledge. They need to have the knowledge about the potential profit the property can provide the concerned business parties so as to be able to aid his clients.

Therefore, it is necessary to have the knowledge of the difference between the two kinds of properties to be able to survive in the market efficiently.

Digital Marketing: Serving the Real Estate

The term digital has come down so deep in our life that it seems practically impossible to imagine our lives without it. And not only our daily life but the commercial life has also been digitalised by the numerous wonders we have around us. One such miracle is the concept of digital marketing.
Specifically talking about real estate market, digital market has proved itself to be a worthy tool. Here, the concept works both ways. While the buyers and investors can know the necessary details about the property, the seller and agents can scheme their marketing plan for the future best on the knowledge received by digital marketing tools.
Having the necessary knowledge at your home is the most convenient and opted for a method that everyone tends to employ. Getting all the information by few clicks is also the trend for real estate buyers. Thus, any seller, as well as an agent having good knowledge about the digital marketing strategies, is more likely to attract a larger no. of clients.
All they need to have to know their way around various digital marketing tools and concepts and their ready to excel in the market. Tools like360o degree view, 3D floor plans are powerful weapons for the realtors to provide the most to the potential buyers. Not only the fancy tools but a good knowledge of social media might come equally handy. Knowing the social trends and planning according to them is the best marketing strategy to go with.

Digital marketing is practically the best performing and least expensive way of marketing for real estate.

Friday, 5 August 2016

Eco friendly Real Estate Projects

Real estate industry is focusing on the recent trend of eco-friendly homes. Builders are eager to develop eco-friendly properties. In major metropolitan towns, the demand for such eco-friendly projects is high rising by time.
Sustainability is the new mantra in the context of real estates. Eco-friendly constructions not only decreases carbon content but cuts down maintenance and utilization charges. Eco-friendly homes are basically made to reduce pollution content, environmental wastes and less bad effects on human health.
The government has also started building green homes for all builders and developers. Its main aim is to decrease the use of the natural resource as much as possible.
Hence sustainable building projects are an urgent need now.
Some facilities that these projects have- waste management program, water harvesting, using solar energy for lighting surrounding areas and so on.

Some advantages are-
·       Data from researches showed that respiratory issues have resolved in green homes.
·       Reuse, recycling, use of renewable resource have lessened the use of natural resource.
·       Advantageous to both user and builder. Builder charges for green certification and consumer in return gets an additional benefit in case of resale. The green certification attracts customers.
·       Green home saves 30% to 40% power consumptions. 

Hire agents who have quite a knowledge about green homes and knows about properties whose designers are experts in the green home. Look for properties which have green home certifications.