Category Archives: General

Valuation of commercial property: best methods

Commercial property differs from residential in many respects. It includes offices, factories, warehouses, shops and more. In recent years it has grown to include more affordable and manageable options such as student accommodation, hotel rooms and storage units etc.

You can’t get a residential buy-to-let mortgage to buy commercial property. If you are an investor in commercial property then you most probably either invest with cash, or have some form of commercial finance backing. As an example, I own an office building which is financed using a commercial loan from a mainstream bank. What is the main difference between residential and commercial property from a valuation perspective? It is the certainty of the future income stream. Most commercial property is either let on a long lease, or has a high degree of confidence in the occupancy as with student accommodation or hotel rooms.

Fluctuations in the local residential market will not have a direct impact on a commercial property valuation; and values are not negotiable and/or variable as per the residential market.

So how is commercial value established?
Commercial valuers typically choose to value based on gross rental yield. Why gross as opposed to net? Because unlike typical buy-to-let property which comes with expenses such as ground rent, service charges, insurance etc, the gross and net yields of typical commercial property are often very close.

Typically, commercial property is let on a full repairing and insuring lease (FRI) or an internal repairing lease (IRL). These mean the person or company renting the commercial property will be responsible for internal and external repairs and insurances; or, in the case of an IRL, everything from the windows inwards (as per shops in shopping centres, for example). Therefore the only investor expense (other than factoring in loan repayments, if relevant) for commercial would be a management fee, thus keeping gross and net yields close.

And, most importantly, if a lot of distressed property has been sold below market valuein the immediate area, it gets increasingly difficult for the surveyor to separate the true market value from a forced sale market value. In reality, the true market value is going to start falling if there is a concentration of below market value property sales in that area. This is an illustration of how your clever purchase of a distressed property can materially impact the values of property in that area for future vendors!

Advice For Anyone Buying A New Home

Do you know everything about purchasing real estate? The article below will give you with suggestions you can utilize when thinking about purchasing real estate. Also look to articles from Keller Irish Wolfhounds, to get up to speed with buying a new home.

Be moderate in your real estate property.Many people want to be aggressive and get the best deal, but this doesn’t always work in their favor. Be firm in what you want, however, since they have experience with those types of negotiations.

Real estate agents should contact with former clients over the holidays and on the anniversaries of their home-buying. They will be reminded of how you helped them with their home buying experience. Give them a friendly reminder that you make money through referrals, and that it would be a huge compliment for them to recommend you to people they know.

If you’re relocating, you should look up information about the neighborhood using resources on the Internet. You can discover a good deal of information this way. Consider the population, population and unemployment rate of your desired location before purchasing a house there so you ensure that you will love where you live.

Homes that need extensive repairs or renovations are sold for cheaper than other homes. This gives you the opportunity to get in at a lower cost, and then you can make the repairs on your schedule. The home of your dreams might be waiting for you behind that ugly exterior.

If you are planning on having kids, you should consider the location of the house in relation to your preferred school district in case you decide to have children.

A lot of Realtors have ready made checklists of purchasing a home. The checklist can help ensure that everything before you go forward to make sure you have everything.

Buyers will often calculate the final closing costs by combining the amount for the down payment, any points that go to the bank, and the real estate taxes that are pro-related. In most cases though, the closing cost will include extra items like improvement bonds, such as school taxes, improvement bonds and other items specific to the area.

If you are looking at buying real estate as an investment opportunity, you should think about repairing and remodeling it. You’ll earn an instant return on investment and increase in property value.Sometimes your value will increase more than what you put in.

This is the best time to think of investing in property. Property values are currently at an all time low since the market has crashed. The housing market will rebound, so any investment you make will have returns.

If you are clear and honest in negotiations with the seller, it should be fairly easy to decide on a final purchasing price that you’re happy with.

Adding financial incentives to offers will make sellers less willing to negotiate selling price.

You should have developed knowledge from this article’s information to assist you in buying real estate. You may not realize that you could help someone get a better future, and they might remember it down the road and help you.

Tips to Ensure Financial Success with Refinancing

Are there risks involved in home mortgage refinancing? Yes, there are. Know a few risks to watch out for through this article.

Home mortgage refinancing may be the wisest decision you make to improve your current financial situation. It can give you a new hope and a new start. With lower interest rates and monthly payments, it sounds like a big relief from the financial burden you may be carrying now. However, although home loan refinancing proves to be effective in helping you with your finances, there are a few risks involved.

You probably know how there are risks involved in almost every major decision you need to make. There are risks involved in buying a new house, in relocating, in buying a new car, and so on. Just like in these cases, the risks involved can be managed well if you are prepared to face them. Here are some of the risks that you need to watch out for before getting some home mortgage refinancing:

The risk of taking on way too much debt. You will most likely become in touch with lenders who will entice you to refinance through attractive offers. No matter how nice it is to know that you are entitled with more money than you can afford, try to resist the temptation and remain only within the limits of what is suitable for your circumstances. All lenders have been trained and equipped in order to find you a program which you can easily afford. All you have to do is to honestly present your financial status and ask them what is best for you. Taking on more debt through home mortgage refinancing can lead you further into the quicksand of bankruptcy.

The risk of foreclosure. Refinancing your home means that you are borrowing once more against your home. This means that you stand the risk of losing your home if you fail to pay for your monthly dues. Consolidating debt through home refinancing also puts you in the same risk. Thus, even if refinancing can bail you out of your financial troubles, failing to pay your dues can lead you further into it.
Increasing the total amount you have to pay for. Taking on home mortgage refinancing will mean that you will subject yourself to another set of mortgage terms. If your existing loan was good for 25 years, and you would like to have it stretched to 30 with refinancing, you might be incurring more costs than you originally planned for. So, make sure you calculate and estimate beforehand whether home mortgage refinancing now can actually be a sound financial decision both short term and in the long run.

If you are thinking about a home mortgage refinancing, you need to carefully plan your moves beforehand. You should consider what your current situation is and what your financial goals are. Base on these, look around for a good lender, take a look on front page of their website, which can offer you affordable deals and better terms. Remember that the only way for refinance to work is for you to make the right decisions. Remember how you are risking not only your home but you and your family’s stability as well.

Tips For Finding The Best Colorado Real Estate Agencies

Colorado is undoubtedly an amazing city to reside in, that is certainly borne out by the numbers that guess that over one million completely new residents will probably be moving into the town in the upcoming years. You cannot discount the importance of having experience in marketing and sales. Several people have as meager respect for sales and marketing professionals as they have for attorneys. Maybe, this is due to the fact, they feel that people who possess such skill and who have access to big stores of knowledge somehow have an advantage over them. And maybe they are right.

Tips for finding the best Colorado real estate agencies

However, why not put such knowledge and experience to work for you? If what you need is to sell your house and an agent has the enough knowledge to get this done, then there is no ground not to take advantage of this opportunity. When you put a piece of real estate for sale, an agent is in her element.

If you do business through a real estate agent, you will acquire the benefit, not only of his or her experience and networking capacity, but also from a solid base of real estate education. In essence, your real estate agent tips are a smorgasbord of information that you would either not have access to, or that you would have to allocate a lot of time tracking down.

Maybe, the most important skill your real estate agent has that will benefit you is his or her power of negotiating clients. In other words, real estate buyers. Of course, if you are an educated real estate investor purchasing another property for your portfolio, you may not need this specific skill, but most buyers are not savvy investors, and most buyers don’t know very much about the real estate market.

Most buyers simply need a home to live in, and most sellers want to get rid of their house so that they can leave the area. For most people, it is a personal matter, and they lack the capacity of a professional. Using an agent lets you to purchase those skills and to save time in tracking down the information you will have to make the sale.

All of these skills that a real estate agent has are fantastic and will help you get and keep a buyer interested long enough to get them to the negotiation table. And that is the time when the agent’s skills will really become evident. You really see an agent shine at the negotiation table. That is because the agent has done this enough times to develop know-how of the human thought process.

Before anything else, you should always remember a real estate agent is just like a salesman in a way that he or she is making an attempt to sell someone a house. The agent could be working for either a buyer or a seller, depending on what purpose she was hired for. However, their main mission is still to sell. It is important that you look for real estate agents that have the capacity to sell any property property. This can help put you at ease knowing that the real estate agent that you have selected can do his or her job well, thereby inflating the quantity of confidence and trust that you have got for him or her. Make sure to get the best such as

It also helps if you can figure out what the real estate agent?s area of expertise is. Since some real estate agents are more specialized and have more information about certain areas, you need to ensure that the real estate agent that you are selecting is informed and talented enough in the particular area that you may need him or her for. If an agent has been living in the area that where your property is found, then it can seriously help in how she or he markets and sells the property to other prospective purchasers since he or she is already familiar with the area, and knows a little something about it.