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The Most Important Factors for Real Estate Investing

What's the most important thing to look for in real estate? While the location is always a key consideration, there are numerous other factors that help determine if an investment is right for you. Here's a look at some of the most important things to consider if you plan to invest in the real estate market.

1. Property Location

Why It's Important The adage "location, location, location" is still king and continues to be the most important factor for profitability in real estate investing. Proximity to amenities, green space, scenic views, and the neighbourhood's status factor prominently into residential property valuations. Closeness to markets, warehouses, transport hubs, freeways, and tax-exempt areas plays an important role in commercial property valuations.

What to Look For

A key when considering property location is the mid-to-long-term view regarding how the area is expected to evolve over the investment period. For example, today’s peaceful open land at the back of a residential building could someday become a noisy manufacturing facility, diminishing its value. Thoroughly review the ownership and intended usage of the immediate areas where you plan to invest.

One way to collect information about what are the prospects of the vicinity of the property you are considering is to contact the town hall or other public agencies in charge of zoning and urban planning. This will give you access to the long-term area planning and make a determination of how favourable or unfavourable your own plan for the property is.

2. Valuation of the Property

Why It's Important Property valuation is important for financing during the purchase, listing price, investment analysis, insurance, and taxation—they all depend on real estate valuation.

What to Look For Commonly used real estate valuation methods include:

Sales comparison approach: recent comparable sales of properties with similar characteristics—most common and suitable for both new and old properties Cost approach: the cost of the land and construction, minus depreciation— suitable for new construction. Income approach: based on expected cash inflows—suitable for rentals.

3. Investment Purpose and Investment Horizon

Why It's Important Given the low liquidity and high-value investment in real estate, a lack of clarity on purpose may lead to unexpected results, including financial distress—especially if the investment is mortgaged.

What to Look For Identify which of the following broad categories suits your purpose, and then plan accordingly:

Buy and self-use. Here you will save on rent and have the benefit of self-utilization, while also getting value appreciation. Buy and lease. This offers regular income and long-term value appreciation. However, the temperament to be a landlord is needed to handle possible disputes and legal issues, manage tenants, repair work, etc. Buy and sell (short-term). This is generally for quick, small to medium profit—the typical property is under construction and sold at a profit on completion. Buy and sell (long-term). This is generally focused on large intrinsic value appreciation over a long period. This offers alternatives to complement long-term goals, such as retirement.

4. Expected Cash Flows and Profit Opportunities

Why It's Important Cash flow refers to how much money is left after expenses. Positive cash flow is key to a good rate of return on an investment property.

What to Look For Develop projections for the following modes of profit and expenses:

Expected cash flow from rental income (inflation favours landlords for rental income) The expected increase in intrinsic value is due to long-term price appreciation. Benefits of depreciation (and available tax benefits) Cost-benefit analysis of renovation before sale to get a better price Cost-benefit analysis of mortgaged loans vs. value appreciation.

5. Be Careful with Leverage

Why It's Important Loans are convenient, but they may come at a big cost. You commit your future income to get utility today at the cost of interest spread across many years. Be sure you understand how to handle loans of this nature and avoid high levels of debt or what they call over-leverage. Even experts in real estate are challenged by over-leverage in times of adverse market conditions and the liquidity shortages with high debt obligations can break real estate projects.

What to Look For Depending upon your current and expected future earnings, consider the following:

Decide on the type of mortgage that best fits your situation—fixed-rate, adjustable-rate mortgage (ARM), interest-only, zero down payment, etc. Note that each type of mortgage has its own risk profile and you need to study each carefully. For instance, ARM includes mortgage rates that can change at any time driven by capital market forces and the borrower must accept any rate changes during the loan term. Be aware of the terms, conditions, and other charges levied by the mortgage lender. Shop around to find lower interest rates and better terms.

6. New Construction vs. Existing Property

Why It's Important New construction usually offers attractive pricing, the option to customize, and modern amenities. Risks include delays, increased costs, and the unknowns of a newly-developed neighbourhood.

Existing properties offer convenience, faster access, established improvements (utilities, landscaping, etc.), and in many cases, lower costs.

What to Look For Here are some key things to look for when deciding between a new construction or an existing property:

Review past projects and research the construction company's reputation for new investments. Review property deeds, recent surveys, and appraisal reports for existing properties. Consider monthly maintenance costs, outstanding dues, and taxes. Costs such as these can severely impact your cash flow. When investing in the leased property, find out if the property is rent-controlled, rent-stabilized, or free market. Is the lease about to expire? Are renewal options favourable to the tenant? Who owns the furnishings? Quality-check items (furniture, fixtures, and equipment) if these are to be included in the sale.

Pruthvi Estate has a one-stop solution to all your problems, we are available for your queries.

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5 BHK River Facing Ultra-Luxurious - #Home in Surat

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Why do you need a Real Estate Agent?

Buying or Selling a Property is a tedious task, a buyer may be in an urgent demand to buy a property and similarly, a seller may be in an urgency to sell property, but how do they meet? Well, here you will be in a need of an agent that keeps the potential to let both ends meet. While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go and could end up being more costly than a realtor's commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking. Find out why shouldn't you discard the notion of hiring an agent!

• Better Access/More Convenience A real estate agent's full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer's and seller's agents work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers' agents, and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you're shopping for homes that are for sale by the owner.

Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don't respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.

• Negotiating Is Tricky Business Many people don't like the idea of doing a real estate deal through an agent and feel that direct negotiation between buyers and sellers is more transparent and allows the parties to better look after their own best interests. This is probably true--assuming that both the buyer and seller in a given transaction are reasonable people who are able to get along. Unfortunately, this isn't always an easy relationship. Sometimes, it is better and easy for a real estate agent to negotiate the offer and meet the buyers' or sellers' budget.

• Contracts Can Be Hard To Handle If you decide to buy or sell a home, the offer to purchase contract is there to protect you and ensure that you are able to back out of the deal if certain conditions aren't met. For example, if you plan to buy a home with a mortgage but you fail to make financing one of the conditions of the sale--and you aren't approved for the mortgage--you can lose your deposit on the home and could even be sued by the seller for failing to fulfill your end of the contract.

An experienced real estate agent deals with the same contracts and conditions on a regular basis and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you're buying or selling your home.

• Not Everyone Can Save Money Many people eschew using a real estate agent to save money, but keep in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions. For example, if you are selling your home on your own, you will price it based on the sale prices of other comparable properties in your area. Many of these properties will be sold with the help of an agent. This means that the seller gets the keep the percentage of the home's sale price that might otherwise be paid to the real estate agent.

• Agents Access Large Networks Yes, you can list your home yourself on multiple listing services (MLS) that agents use. But will that be enough? Even if you have a large personal or professional network, those people will likely have little interest in spreading the word that your house is for sale. You don’t have relationships with clients, other agents, or a real estate agent to bring the largest pool of potential buyers to your home. A smaller pool of potential buyers means less demand for your property, which can translate into waiting longer to sell your home and possibly not getting as much money as your house is worth. “A good real estate agent should have a Rolodex of names and contact information, so they can quickly spread the word about the property they just listed."

Conclusion:

If you want to be taken seriously by sellers’ agents, get the best price, and make sure you don’t miss any key steps in the process or risk a lawsuit it’s better to use a real estate agent than to try to sell your home yourself. It’s a tall task to learn how to sell your house without a realtor and selling your home will likely be one of the biggest transactions of your life. You can try to do it alone to save money, but hiring an agent has many advantages. Agents can get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and prevent your emotions from sabotaging it.

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The benefit of Pre-Booking | 2 BHK Home Sample Flat Tour in Pal-Adajan, Surat

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How much does a house cost in Surat?

We are an estate agent in Surat city since 2002, as per our experience the price varies as per following things:

Location

Age of building

Project Developer

Amenities provided

Condition of property

So if you change any of the factors the price may vary for the property.

but still, we can say approx. rates of Adajan-Pal and Palanpore

40–50 Lakh for a 2BHK apartment

60–80 Lakh for 3BHK Luxurious Apartment

80 and above for 4 & 5 BHK apartments

But you still get any confusion we are here to help you with property search and recommendation, we make sure that our client gets the best available deal in the market that fulfills their requirements.

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Upcoming Project 3BHK Flat Tour in Adajan(Palanpore), Surat | 4K

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Surat is a city that has massive edifices, be it commercial or residential, which is developing day by day. It has been observed that people often get confused when it comes to selection of properties. Fortunately, it’s our expertise to help you out with the same and to manifest a clear-cut picture of the quality of home/spaces and its value that you need to take under consideration while buying a property.

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What is Recommendable? Purchasing a Property via a Broker OR from the Developer directly

Purchasing a property through a broker saves time by providing absolute information whereas purchasing a property from the developer directly, demands both time and effort and also visiting all the projects is tedious and exhausting.

The Broker is proactive and dispenses numerous diversity in projects of various developers, dealing in various sizes, places, conferring a wide spectrum of alternatives, whereas projects only from the same developer is bestowed, hampering the options.

Under the broker’s guidance, right information of Title of Clearance is always provided whereas it is sometimes kept secretive in case of buying from the developer.

Specific Re-Sale value is always stated by the Broker whereas under the direct developer communication the Re-Sale value is approximate.

The Broker acts as an authentic source in providing all the legal information, Goodwill and Background of the project and its developer whereas there is no proper source for a buyer to collect information in direct buying process.

Definite information of current market scenario is provided by the broker on the other hand it is concealed.

The broker acts as a bridge between the two parties. Having said that, the broker usually resolves a matter arising between the parties, whereas due to absence of a mediator under buying directly from the developer, the parties may fail to dissolve the issue.

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3 BHK Apartment for Sale in Pal, Surat, Gujarat, India | Real Estate

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3BHK Lavish Apartment for #Sale in Pal, Surat | #RealEstate

Project Details:

Property Code: [PR0028]

Area: Pal, Surat.

Bedrooms: 3

Area Built: 1956 sq. ft.

Number of Floors: 15

Type: Under Construction

These Photographs are of Sample Flat

For more details 📞 9879377714 / 98980 10968

👉 Click Here to Reach our Office 👈

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What is better on a Preferential Basis? Renting a Home OR Buying a Home

Generally, the Interest Rate of  Home Loan is low, hence it is better to pay EMI rather than rent.

The problems being faced due to frequently changing a rented property is minimized.

Owning a property is mandatory in order to avail the value appreciation of property.

Moving to and fro through a rented property lays impact on family members as well, they face problems in factors such as ~ Adapting to the frequently changing environment is difficult. ~ Troublesome for children to cope in the new schools.  ~ It is burdensome to set up the home from basic.

Brokerage Charges are to be paid every time you change/shift a rented home.

Bound by the terms & conditions of the Homeowner, freedom is hampered.  ~ Freedom of Renovation  ~ Consent of Homeowner in making changes.

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4BHK Luxurious Flat - Ready Possession House for Sale in Surat City

Project Details:

Property Code: [PR0013] 

Area: Adajan, Surat.

Master Bedrooms: 4

Area Built: 3231 sq. ft.

Number of Floors: 11

Type: Ready Possession

The present Photography is of Sample Flat

For more details 📞 98793 77714 / 98980 10968

👉 Click Here to Reach our Office 👈

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3BHK an EXCLUSIVE Home for Sale in Surat, Gujarat, India

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3BHK an EXCLUSIVE Apartment for Sale in Surat (5K)

Project Details:

Property Code: [PR0023]

Area: Palanpore , Surat.

Bedrooms: 3

Area Built: 1965 sq. ft.

Number of Floors: 14

Type: Under Construction

These Photographs are of Sample Flat

For more details 📞 9879377714 / 98980 10968

👉 Click Here to Reach our Office 👈

“પૃથ્વીનો છેડો ઘર”

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Which property gives higher returns? Commercial Property OR Residential Property

Rent is higher in Commercial Property as compared to Residential Property. 

Maintenance is lower in Commercial Property as compared to Residential Property.

The tenure of the lease to MNCs, Banks, Corporate Offices is between 10 to 15 years in a Commercial Property whereas under the Residential Property the period is of 11-month.

The Re-Sale Value is boosted on the Commercial Property which is on a long term lease, whereas this is not always assured on a Residential Property.

A Shop Owner has advantages of collaboration with an MNC to start off as a Joint Venture.

The Banks shall provide loans on the Commercial Property which is on a long term lease.