November 2018 – Property PFA

How To Build Equity With Commercial Property Investment

Posted on November 24, 2018 by 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.

Making The Grade Understanding Commercial Property Ratings

Posted on November 22, 2018 by blogger

If you’re looking to start up a business in Sydney CBD, one of the greatest challenges is finding suitable office space. Unlike looking for a flat or home, your commercial real estate is critical to your business – location and appearances are everything; but how do you balance the best expensive costs of prime commercial with your operations budget?

Australia has a commercial property rating system that helps businesses determine which type of property is best suited for their needs. From the most expensive Grade A Sydney CBD locale, to Grade D bare bones facilities, find out what grades of commercial property are out there and what it all means for your business.

Which Grade of Commercial Property is best suited to your business needs?

Grade A: Grade A properties are prime locations in highly sought-after addresses. The properties will be in the heart of the financial or business districts and be relatively new or recently refurbished, with state-of-the-art fixtures and fittings. Rents in Grade A offices will naturally tend to be higher, catering to the executive classes of Fortune 500 companies. Traditionally, Grade A property tends to be leased or bought by banks, brokerage houses and high-profile law firms. Meanwhile, with the latest boom in the demand for sustainable and ecologically advanced premises, many of the newest “green” buildings tend to fall within the A Grade. Cities like Sydney always growing and Grade A property is now available in many outside of the immediate CBD to business districts in the City Fringe, including Surry Hills and Pyrmont.

Grade B: As Grade A property tends to be scarce and relatively pricey, the majority of businesses, especially newer ventures, will opt for Grade B office space. Grade B buildings will be less expensive but include all your standard amenities to make a good impression. Grade B offices tend to be a little bit away from the prime markets, but they could be on a main strip in a smaller city fringe suburb. Smaller law firms, independent investment consultants or doctors’ offices make great use of Grade B buildings. Many cities have Grade B office building clusters near airports or other transportation hubs, but away from the central “downtown” areas and business districts.

Grade C: Grade C properties are inexpensive, functional buildings. Furniture and fittings tend to be older and buildings are maintained to a lower standard than higher grade buildings. Grade C offices are best suited to call centres, small firms and start-ups and will tend to be older and located farther out of the central business districts. Don’t look for pretty lobbies or plush carpeting in Grade C buildings; these are about function over form.

Grade D: Grade D office space is the least expensive commercial property grade – and for good reason. Office space in Grade D buildings tends to cramped, furnishings and fixtures are relatively shabby. Most of the space in the facilities will be used for storage or manufacturing. Grade D buildings are well outside the standard business areas, often located in industrial parks. Grade D properties are suited for manufacturing or distribution companies that require large warehouse industrial real estate in Sydney or storage space as adjuncts to office space.

Meanwhile, some central CBD areas have gone beyond the traditional grading system. Some of the most exclusive property is now considered “Premium” property above Grade A. Look for these at prime locations with “Harbour Views” and exceptional quality.

Keep in mind that when you pick your commercial real estate, it’s more than just the grade that matters. Consider for example whether you need a store front. You can often go a grade up in your choices by downsizing your space requirements or looking outside the CBD to outer suburbs, such as the City Fringe.

How To Run A Property Title Search

Posted on November 17, 2018 by blogger

Property title search is very much important when you are going to buy any house or building or even if you have to sell out your own place. You need to have the complete papers and documents with you so that it wont get suspicious for anyone to deal with it. Property look up can be carried out in many ways depending on your time availability and cost budget. Property look up is needed when you have to hire a new house for your residence or a building for your office. It is also used when you are going to give your house to some on rent, and you can seek info about the tenants from the old residence.

Property look up can be carried out through online sites. Online sites are easy, simple and painless for theses type of researches. And you can easily get the link on sites like phone number look up, background check through social security number. Property research through online sites is a game of few seconds, all you need to do is to have the proper guidance and know how about the sites. Firstly conduct the thorough web search through searching engines and chose the best site as per your needs and requirements.

Enter the address or owners name or the place or location of the house/ building; with in few seconds by making few clicks you would be able to get access to the healthy info about the house. You would get to know about the owners name, its profession, its criminal records, its financial details and moreover the neighboring details of the house. Online sites will charges you in the range of between of $30 to $40 depending on the list of houses you have to look up for their title.

I would like to suggest you to go through all the details, terms and conditions of the site before getting registered to it. The selection of site depends on the fact that whether you want this service for the entire year or for short time span. As the real estate agents may require to log on to the site for the entire year or for consecutive years, but an ordinary person who is going to buy the house once in his lifetime would only need it for one time.

After Gurgaon, Manesars Property Prospects Swell

Posted on November 13, 2018 by blogger

Gurgaons real estate development from a city suburb to a hi-tech city is a model for other cities to follow. Almost all cities of the National Capital Region (NCR) developed on the lines of Gurgaon and upgraded their property profiles. In fact, Gurgaon is now serving as a city centre for neighbouring towns like Dharuhera, Bhiwadi and Manesar. Real estate developers and home seekers from Gurgaon are now spreading into these areas.

Manesars real estate development needs a special mention here. Manesars proximity to Gurgaon is its biggest asset. Also property prices in Gurgaon are almost on the lines of Delhi. The average capital value for a residential apartment in Gurgaon is Rs 900 1,3000 per sq ft, which is almost similar to the property prices prevalent in Delhis Saket and Karol Bagh areas. Commercial property rates follow the same trend.

Considering all these factors, many corporate houses and manufacturing units have bought land banks in Manesar. The city would host the manufacturing units of automobile giants like Maruti Udyog, Suzuki and Hero Honda. Suzuki would be investing Rs 2500 crore to develop their Manesar plant. In fact, technology leader Samsung Telecommunications would also be setting up their India unit in Manesar. The company would be investing Rs 850 crore in Manesar in near future.

All these developments have prompted the property developers to consider residential development in the region. Prominent real estate builders like DLF, Unitech and Raheja have announced a slew of residential projects for the region.

An expressway has been proposed that will connect Gurgaon to Manesar and property builders have taken huge land banks across this expressway. Also, about 10 SEZs have been notified in and around Manesar. This too has triggered residential developments in the region. With so much happening in and around Manesar, this region has become a favourite with the real estate investors.

Why Rent Commercial Property

Posted on November 7, 2018 by blogger

When your business needs to be started from scratch, there are many decisions you need to make. As most people don’t want to take on the stresses or risks involved in buying commercial property, they gladly settle their businesses in their homes. But as stated in my previous blog, how long are you going to use your home as an office?

When your business begins to extend, you will ultimately need an external office space that’s different from your home. As a result, people in UAE resort to buying property unlike the other few who use someone else’s property by paying a fixed amount of AED as rent. Why should you rent commercial property in Dubai?

When the roof of the rented place blows away, when there is a problem with the electricity or any other problem linked to the physical maintenance of the space that you have rented, you actually have no problem. All these issues fall into the mailbox of the one who owns the space, as your business is just a tenant living there. You have nothing to do with these things and hence your finances and attention can be properly concentrated on your work. Why risk your business for the sake of owned property? If not now, your business will receive that important place in the market at a later stage. Till then, a commercial rental property in Dubai will do just fine.

For the best Dubai rental property deals, contact Move in Dubai located at Al Barsha.