How to Turn Your Home Into an Effective Office

There are a few things one has to do in order to convert one's home into an office, here we'll give you a glimpse at what it feels like to turn your home into a great office! – Define an area Designate a space that is to be your working area at all times or…

There are a few things one has to do in order to convert one's home into an office, here we'll give you a glimpse at what it feels like to turn your home into a great office!

– Define an area

Designate a space that is to be your working area at all times or rather most of the time so you have a set place to work. More than this follow a routine that you can hold yourself accountable to, such as reporting to your work area at the same time each day. This will automatically make you more productive.

– Think vertical

Most of our homes tend to come with limited space, so it becomes important to use the space available to us well. Do not get bogged down by limited desk space, invest in some hanging shelves that come with some amount of storage space to help avoid clutter. A messy desk can affect your productivity in negative terms, so it's best to avoid it entirely. Not only this but hanging shelves add some character to your home office.

– Add some color

Get some relaxing colors painted on the wall of your home office, something like red or blue that can put your mind at ease. More than that it helps zone off your office from the rest of your house and signals other family members that you are in the 'busy zone' and not to be disturbed. Or you could just do something as simple as adding flowers to your desk to liven it up.

– Invest in lighting

Without bright lighting in your room you'll never be productive, so invest some resources in making your office as bright as possible. It's proven that people tend to be more lethargic in winter months when it's darker and colder, and consistently lower on productivity. So in order to avoid that situation make sure you have a good mixture of natural and artificial lighting that stimulates the best productivity.

– Technology

It becomes important to have the right software to connect and network with the rest of your team in a productive manner. Tools like Skype and team chat are important for communication and other custom software of your company should be installed in your system to make the whole process productive. More than this invest in a decent internet connection that will ensure all of these clients and software run smoothly.

This concludes our guide on how to convert your home into an effective office space, leave your thoughts in the comments below.

Pros and Cons of Owning Various Commercial Property Types

Looking to invest in commercial real estate, but do not know which property type to consider? Here's a comprehensive guide on the five most common types of commercial properties. 1) Multifamily (Apartment Buildings) – Multifamily refers to apartment buildings of all sizes. It is categorized into garden apartments, walk-up apartments, mid-rise apartments, high-rise apartments, and…

Looking to invest in commercial real estate, but do not know which property type to consider? Here's a comprehensive guide on the five most common types of commercial properties.

1) Multifamily (Apartment Buildings) – Multifamily refers to apartment buildings of all sizes. It is categorized into garden apartments, walk-up apartments, mid-rise apartments, high-rise apartments, and special-purpose housing.

Garden apartments are low-rise apartments with typically less than 3 stories, built in a garden-like setting. Walk-up apartments are 4-6 story apartments without an elevator. Mid-rise apartments are 4-8 story apartments with an elevator. High-rise are 9+ stories with at least one elevator. Special-purpose housing is a multifamily property that targets a population segment, which includes student housing, senior housing, subsidized housing, etc.

Pros of Multifamily Properties:

• Easy to get into smaller properties and slowly transition to larger properties

• Tax benefits

• Use returns in place for financing

Cons of Multifamily Properties:

• 24/7 tenant management

• Pro-tenant legislation

• Rent control

2) Industrial – Industrial is typically used for producing, manufacturing, or storing products. It includes warehouses, garages, distribution centers, etc. It is oftentimes separated into heavy manufacturing, light assembly, flex warehouse, and bulk warehouse, depending on the size and use of the property.

Heavy manufacturing oftentimes heavily utilizes machinery and usually requires a substantial amount of renovation before renting to another tenant. Light assembly includes storage, product assembly, and office space, which is easier to reconfigure than heavy manufacturing. Flex warehouse normally includes both industrial and office space, making it an easily convertible space. Bulk warehouse are massive properties, typically 50,000-1,000,000 sq ft space, usually used for regional distribution of products.

Pros of Industrial Properties:

• Deal with single tenant

• Long term and stable leases

• Relatively small initial investments

Cons of Industrial Properties:

• Area specialization, making it harder to find new occupier

• Hefty and intensive reconfiguration expenses

Higher tax rates , depending on area

3) Office Buildings – This category includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in between.

The Office buildings are either Central Business District (CBD), which is in the middle of a city, or suburban office buildings. There are three categories: Class A, Class B, or Class C, which is determined by the quality of construction and desirability of the location of the office.

Pros of Office Buildings:

• Less turnover

• Longer lease terms

Cons of Office Buildings:

• Less frequency to raise rents

• Emphasis on parking

• Expensive financing options

4) Retail / Restaurant – Retail includes strip centers, community retail centers, power centers, regional halls, and out parcels.

Strip centers are small retail properties that may have an anchor tenant, which is a larger, more well-known tenant that will attract small retail tenants. Community retail centers are between 150,000-350,000 square feet with multiple anchors, usually grocery stores and drug stores. Power centers have several smaller retail stores with a few box retailers such as Wal-Mart, Lowes, Staples, Best Buy, etc. occupying between 30,000-200,000 square feet, containing several out parcels. Regional halls are between 400,000-2,000,000 square feet with a lot of anchor tenants. Out parcel is land set aside for individual tenants such as fast-food restaurants or banks.

Pros of Retail / Restaurant Properties:

• Security and profitability of an Absolute Triple Net (NNN) lease

• Less turnover

• Less tenant management

Cons of Retail / Restaurant Properties:

• Less frequency to raise rents

• Dependent on tenant performance

• Location and foot traffic is extremely important

• Emphasis on parking

• Visual upkeep

5) Land – Land is fairly self-explanatory. It is often categorized as Greenfield land, Infill land, and Brownfield land.

Greenfield lands are underdeveloped land such as farms and pastures. Infill land is vacant land located in cities that have already been developed. Brownfield lands are usually environmentally damaged land that was previously used for other industrial or commercial use. The land is available for re-use.

Pros of Land:

• Tax benefits

• Less expensive

• More rental possibilities (depend on location)

Cons of Land:

• No immediate income from tenants

• Few financing options

• Requires ground-up development

The above are the most common types of commercial property types. There are several others that have not been discussed above such hotels, funeral homes, nursing homes, theaters, etc, which are special-purpose type properties.

How to Minimize or Avoid Brokerage When Buying a Home

The number one such cost is the brokerage you pay to the real estate agent or the brokerage firm. Brokerage is the fee charged by middleman or broker between the buyer and seller. This fee alone can significantly add up to the cost of buying your home and make you exceed your budget for buying…

The number one such cost is the brokerage you pay to the real estate agent or the brokerage firm. Brokerage is the fee charged by middleman or broker between the buyer and seller. This fee alone can significantly add up to the cost of buying your home and make you exceed your budget for buying a home, as most brokers charge a brokerage fee of 1% to 3% of the total sale price. And, when buying a home even 1% can mean a lot of money.

Here are some ways in how you can minimize or totally avoid the brokerage fees when buying a home -:

  • Although brokerage or the estate agent's fees is often said to be paid only by the seller and not the buyer, in practice the estate agents claim brokerage from both the seller and the buyer. But, if you search hard enough you might be able to find a broker who takes brokerage only from the seller and not the buyer.
  • With the help of internet it is not at all difficult for you to find homes for buying instead of going to a real estate agent or a brokerage firm. There are many sites on which homes for sale are listed where you can contact the seller directly without having to go through an agent. This means you get a zero brokerage or no brokerage home and you totally save all the money you had to pay as brokerage fees.
  • There are many online sites offering zero brokerage or no brokerage homes, which you can find homes on. With such sites existing a zero brokerage home is just a Google search away from you.
  • Leverage your network of friends, relatives, colleges, and acquaints to find a home to buy instead of going to a broker. You'll definitely have someone in your network who is looking to sell a home or at least knows someone who can put you in touch with someone wanting to do so. You'll save a ton of money in brokerage fees by taking help from your network to find you a home.
  • Last but not the least, if you find that there is no other option other than going to a broker to find a home to buy, use the age-old technique of negotiating with the broker. Bargain for a good deal and be persistent until you find a broker who accepts your terms. This way, even though you will not be getting a zero brokerage or no brokerage home, you'll at least have a better deal and will have to pay less in brokerage fees.

Choosing a Commercial Property

When leasing or buying commercial property, there is a great deal of things that you need to consider. This may determine how well your investment will be able to perform in future and so it should be done with the greatest care. You need to consider the property and this should include all improvements as…

When leasing or buying commercial property, there is a great deal of things that you need to consider. This may determine how well your investment will be able to perform in future and so it should be done with the greatest care.

You need to consider the property and this should include all improvements as well as land. You also need to consider the business component or lease. You should investigate and also analyze all the pros and cons of every component and how it will measure against the entire strategy of the investment.

Commercial property

When you are investing for the purposes of capital growth, there are certain kinds of retail, commercial or industrial properties that can be a very superior option. It is important to know that not all kinds of properties will perform the same. There will always be differences.

When you start to analyze the great potential of a physical property, location and position need to be considered and should actually be the key elements in the process of making a decision. In property, the capital growth of an asset comes from the increase of the land value and the location effects the demand and supply for the land and this then determines the value. A good example is a central business district where the value of land is very high and this actually drives the capital growth.

When the land value goes up, then the value of all the improvements or even the building itself will depreciate with time. This means that the land appreciation should be sufficient enough to counter the building depreciation and also to grow the asset value with time.

Position means how easy it is to access the property. You should ensure that the location matches with the kind of business that you are planning to operate in the area or concessions. A good example is a distribution center that needs to receive shipping on a regular basis and needs to dispatch as well. It should have a great space and road access that is not hindered. This may be a good match for a city fringe or a place that is near to the port. Arterial roads make it even easier to access.

Lease

It does not really matter if you are looking for a capital growth or for rent return. The leasing strategy is very important to the performance of the assets in the long run. A leasing strategy should allow regular reviews on rent so as to be competitive and viable at all times. This should include things like the provision for maintenance of the property as well as fit outs that will make sure that improvements are kept at a standard that is suitable.

The layout and size of the promises

This is a very important consideration. You should find concessions that can actually handle your kind of business in a very efficient manner. You need to consider the structure and its appearance both externally and internally. Consider the height of ceilings depending on what activities you plan to carry out and all the facilities that visitors and employees will be able to enjoy.

Why So Many Empty Stores? 7 Possible Reasons

When one travels through almost any community, he discovers, and observes, a number of empty stores, which, quite often, remain unoccupied, for lengthy periods of time. While there are a variety of reasons and causes, there can be little doubt, there is a cause, for concern, because of its impact and implications, on the overall…

When one travels through almost any community, he discovers, and observes, a number of empty stores, which, quite often, remain unoccupied, for lengthy periods of time. While there are a variety of reasons and causes, there can be little doubt, there is a cause, for concern, because of its impact and implications, on the overall economy. With this in mind, this article will briefly examine, and discuss, 7 possible reasons, for this, and, possibilities, suggestions, etc.

1. Location: Some areas are more more challenging, keeping and attractive stores, because of several factors. Some considerations in this regard, include, a lack of sufficient parking, an unattractive product – mix, or significant near competition. Not every area is the best option, for attracting certain businesses, and therefore, there must be an attempt, to change, the focus!

2. Size; shape; or unique design: Are the store sizes, either, too large or too small? Is the shape, such, where it reduces the attractiveness? Is there something about the design, or layout, which makes it challenging to attract quality, new businesses?

3. Asking too much; pricing: The laws of supply, and demand, would indicate, pricing is a significant factor. Would not it make sense, for a landlord, to adjust his pricing and / or terms, rather than having the property, remain vacant? When the price is too high, you eliminate certain businesses, from consideration!

4. Permits / building codes: Some locales have made changes to their building codes, and when existing businesses, move out, even the identical type of business, may not be permitted. For example, if the parking regulations / requirements, for restaurants, and / or other types of businesses, require specific amounts and / or types of parking and parking spots, it makes it more more challenging! In addition, in some locales, the local municipality imposes an involved, expensive process, to obtain the necessary permits, needed!

5. Economic changes (overall and penalties): Obviously, the overall economic conditions, factors heavily into this trend. In addition, there may be specific issues, related to this locality. In addition, if a landlord, significantly increases, his rent terms and pricing, when the existing lease expires, many businesses are forced, to decide to close!

6. Change, in focus: Perhaps, there are too many, of a specific type of business, in this area, and / or the area has changed, either from a safety, and / or a socio – economic stand – point. This, often, means, it may make sense, to change the focus, and re – think, how to best fit the space, to the needs, of the local community.

7. Under – capitalized: A primary reason, many businesses fail, are they under – capitalized, and then, either do not sufficient, properly market, or are ill – prepared for slower periods and eventualities.

Would not it make more sense, to effectively plan, and maintain the occupancy of local businesses, by endorsing, a Support Your Local Business , and / or developing more, relevant, sustainable businesses, which have some unique factor, which makes a compelling local attraction? Until there is some way to balance the landlord's desire for profit, with reality, and get people, on, the same – page, we will continue to witness this fight!

Measuring the Financial Health of Your CRE Business

Keeping an eye on the health of your business is something most should do, but few fully execute. It's easy to focus on one metric like sales quantity; but are you considering sales quality? It's a difficult question to answer, and one that can only be really answered from capturing several key performance metrics. If…

Keeping an eye on the health of your business is something most should do, but few fully execute. It's easy to focus on one metric like sales quantity; but are you considering sales quality? It's a difficult question to answer, and one that can only be really answered from capturing several key performance metrics. If left unanswered, you find yourself peddling faster and faster only to stay in the same spot-your expenses keep increasing, and the bottom line does not change.

Most CRE brokers out there are independent contractors, which means they are the legal owners of their businesses; this makes understanding the true health of your business all the more important. You know the CRE game, you know the players in the field, and you know how to find the best office space deals for your clients; now its time to learn how to score your achievements.

Revenue & Expenses
This one is the obvious first step to obtain the health of your CRE business. However, this number goes beyond the sentences you've collected; track and categorize your other sources of revenue like same client, client referrals, networking, direct prospecting, and even directed decisions. Expanding the scope of data allows you to get a better picture of where you stand.

Your expenses should encompass the basic ones like phone, car, and broker splits, but like any growing business, the owner needs to tend it through investment. You can grow your business through research and development or marketing, but as a rule of thumb, if your revenue increases 10%, your expenses should not increase more than 10%.

Capital Improvements
The exception to this rule is capital improvements. Buying a new computer or CRM software, or investing in yourself by training to acquire a new skill or useful certification, are all examples of sound capital improvements. You will not see a return on investment in the first year, but you will generate one in the future.

Activity Ratios
This is a critically important metric in obtaining the financial health of your commercial real estate business. This metric focuses on the “how” of your business. You are meeting clients, holding meetings, and attending seminars, but how is this work getting done? This can get tedious, but track your movements going all the way from proposal, to listing, to closing. Also include other activities like number of calls completed and pitches presented. Taking the time to look closely at the effort put into your daily routine will certainly show which activities are worth doing, which are not, and which need improvement.

Get a Second Opinion
You've taken the time to tally the numbers and record activities, but you are having difficulty making sense of the numbers. This is common for many small firms or individuals. Call one of your industry friends to get a second opinion; getting an external perspective can shine fresh light on a sticky problem.

Beware of over-analysis, which can only be as destructive as under-analysis. Stick to generally analyzing the broad strokes of your business, while diving only a little deeper into certain touch points. Numbers never lie so long as you do not lie about your numbers! Even if you are not experiencing any business difficulties, tracking your numbers through the good times is an excellent way to zero in on problems during the bad times.

Tips to Hire a Commercial Real Estate Agent

If you do not want to handle your relocation project or commercial lease renewal yourself, you can go to a commercial real estate agent. All you have to do is choose the right professional for your needs. Given below are 6 things you may want to consider during your assessment. Read on. Likability A relocation…

If you do not want to handle your relocation project or commercial lease renewal yourself, you can go to a commercial real estate agent. All you have to do is choose the right professional for your needs. Given below are 6 things you may want to consider during your assessment. Read on.

Likability

A relocation or lease renewal is similar to a construction project. The difference is that it takes a bit longer than expected. So, it's a good idea to go with someone who you like. This way you will enjoy through your journey and the process of negotiation may also go well.

Trust

Make sure the professional agent that you are going to hire can be trusted. It may be difficult to find out who can be trusted but it can be done during the interview. By asking a few relevant questions during the interview, you can get a pretty good idea as if they are trustworthy or not.

Conflicts of Interest

What does a conflict occurs? Actually, the conflict may occur when you go with an agent who already is a representative of many property owners in the same area. Now, the agent wants to serve you because that the fact that they have given their word to the property owners that they will find a way to earn them the highest rate of rent possible. So, you may want to get a clear idea of ​​the conflict severity and its importance for you.

Experience

Experience of the agent is of utmost importance as far as choosing the best professional is concerned. Ideally, it's a good idea to go with a commercial real estate agent who has over 10 years of experience in the field. Their gray hair may be a sign that they have been in this business for years. You can ask about their experience during the interview.

Age

Age of the professional should not be taken as an evidence of their experience in the field. The million dollar question is how long they have been actively involved in the business. You need to keep in mind that commercial real estate is on the list of those businesses that people do part time. So, make sure you choose a professional who has been working full time as an agent. What matters is experience not the age of the agent. After all, age is just a number.

Specialization

Typically agents specialize in two ways. They can do it by industry vertical or location. As far as importance is concerned, location specialization carries more weight. An agent with location specialization has a pretty good idea of ​​what is happening in the market. They know about the best deals and best property owners. Aside from this, their negotiation style is pretty impressive.

Long story short, if you have been thinking of hiring the services of the best commercial real estate agent, we suggest that you take these factors into consideration. This will help you choose the best service provider.

Dealing With Renovations for Your Multi-Housing Location

If you own rental property, then you know how important it is to keep it in good repair After all, if you do not, then tenants will become irate, and absolutely you will have empty units. But, at the same time, getting work done on a property that needs several different projects can be stressful…

If you own rental property, then you know how important it is to keep it in good repair After all, if you do not, then tenants will become irate, and absolutely you will have empty units. But, at the same time, getting work done on a property that needs several different projects can be stressful – especially if it means trying to manage the work or even just trying to get things organize!

Fortunately, there are a number of companies who are more than happy to handle multi-housing renovation projects for you. They understand the various complexities involved, and know how to plan and organize the assorted projects so that everything gets done by the time frame you need.

But, how do you know that a particular company can handle a multi-housing renovation project? Can every construction or remodeling crew accomplish what might seem to be a Herculean task? The answer – no! Not every construction company is equipped to handle multiple jobs being done within the same location. That requires a company with enough people power to get work done – effectively and efficiently. So, how can you find this type of company? Much like finding any other skilled craftsman! However, there are some things to keep in mind.

· Look for companies that have perform multi-hosha renovation projects in the past. You may want to talk to other property owners and find out who the recommend (or not) to get work done in a practical, cost effective manner.

· Talk to the relevant companies, and explain what you need to have done. Be sure they understand what your timeline looks like, and what your budget is.

· While it is important that the renovation team listened to you, and not over rule all your concerns or needs, it is also important that you listened to what you have to say. If you feel as though you are not being heard, or are made to be in significant, then that company should not be hired!

· If there are tenants still on the concessions while work is done, be sure to let the tenants know what is happening and sometimes learn from there is a time that works better for them to have the jobs done.

· Only work with companies that are fully licensed, bonded and insured! You do not want to get stuck with any outstanding financial issues or a job that was started but left unfinished resulting in having to start this process all over again.

· Never pay more than a third of the price in advance! Companies that ask for more than that are risky choices for work to be done.

Multi housing renovations do not have to be stressful for your or tenants. Take care in your hiring and before you know it, you can have your property as up to date as you want.

Top 5 Furnished Offices in Mississauga

Whether you are a remote company, operating a start-up or a freelancer, the ability to have access to a quiet office space is certain to be an appealing prospect. A contemporary shared office space in Mississauga, Ontario makes it possible to set up a place for your laptop without the need to relly on a…

Whether you are a remote company, operating a start-up or a freelancer, the ability to have access to a quiet office space is certain to be an appealing prospect. A contemporary shared office space in Mississauga, Ontario makes it possible to set up a place for your laptop without the need to relly on a permanent residency or commit to a long-term lease. For all-round convenience, opportunities, and great location, let's take a look at the top five furnished offices in Mississauga:

1) Whitehall Offices

The recently opened Whitehall Offices at 4310 Sherwoodtowne Boulevard is hands down the first choice shared office location in Mississauga. It is rated the best based on its flexibility, location, pricing and the all-round facilities offered by this business center. It is located close to Square One mall in Mississauga. This business place offers free parking, gym, business lounge, coffee and unlimited high-speed internet. Moreover, this business center is located on the ground floor with a square foot of over 14,000 sq. ft. with no waiting time for the elevators. Most of the offices have exterior windows.

2) Mindshare Workspace

Recently opened Mindshare Workspace in the Erin Mills Mall is the next best option. This place is modern and joins the Millennials. There are a limited number of offices at this location. It offers more co-sharing spaces and hot-desks. However, this place is pricey and quite small in size.

3) Regus (Robert Speck Parkway)

Regus at 2 Robert Speck Parkway is located on the 7th floor of this elegant 16 story building; it offers offices of different sizes. This business center is known for its views. However, the parking is paid and the facility does not offer a fitness facility.

4) Intelligent Office

Intelligent Office at 2680 Matheson Boulevard, Mississauga scores lower when it comes to its location as compared to Whitehall Offices and Regus. This facility ranks higher when it comes to answering phone calls for the virtual clients, but because of the facilities provided and the location, the rating is lower down the list for this office.

5) Regus (Burnhamthorpe Road West)

The Regus office at the Sussex Center located at 90 Burnhamthorpe Road West is the final choice of business center. This shared office is ideally located, but the lack of free visitor parking brings the rating down as compared to other contenders. Also for new visitors, navigation inside the building is a little difficult.

Have You Ever Thought About Owning Property?

What does it really mean to invest in yourself? I mean yeah stocks, bonds, mutual funds, etc. But what is your plan once you reach the point you're dreaming of? Of course everyone should constantly be saving for retirement, but is not there another goal that? Starting a low cost business may sound very complicated,…

What does it really mean to invest in yourself? I mean yeah stocks, bonds, mutual funds, etc. But what is your plan once you reach the point you're dreaming of? Of course everyone should constantly be saving for retirement, but is not there another goal that? Starting a low cost business may sound very complicated, but it's actually much more simple than you think. Have you ever thought about owning property? I am not talking about launching the next big real estate venture, but would it be that difficult to own some small properties? Lets think about it for a second. If you were to buy a house for $ 200,000 and rent it out for $ 2,000 a month, that would only take a little over eight years to break even, and then you would be making an additional $ 24,000 a year after that.

OK well even if you have the money to make that investment, you may be thinking to yourself … “How much work is it going to be?”. To be honest, one family is not to much to take care of as a landlord. You may have to stop by once a month or so for routine maintenance, and if you are someone who is somehow handy, then this should be no problem for you! Otherwise you could easily hire a part time worker to help with a handy work. This may dip into your profits a little bit but will present itself as an opportunity to make side cash with basically no work involved at all.

As a professional investor, I would highly recommend investing in real estate to my listeners. It is a very easy way to generate profits in the long term, and if you continue to invest into this market you will be attending very large revenues down the road. This is a very simple yet highly investment, but it is also a very valuable investment nonetheless! It's an easy way to make extra income, and you might surprise yourself with how much revenue comes your way! If you do not have enough saved up to get through the startup costs of your venture then you may want to find investors. But finding investors with small companies like this can be very easy! The best time to start saving is right now! Owning property can be very lucrative and it should definitely be an investment considered by anyone.

Commercial and Residential Real Estate in NCR

Commercial Property Commercial Property consists of any property which can be used for commercial purposes which generate income such as retail shops, office spaces, food courts, cineplex, parking structures, conference plazas, warehouses, factories, IT Data Centers, & other shops. They are different from property that may be used for residential or agricultural purposes that although…

Commercial Property

Commercial Property consists of any property which can be used for commercial purposes which generate income such as retail shops, office spaces, food courts, cineplex, parking structures, conference plazas, warehouses, factories, IT Data Centers, & other shops. They are different from property that may be used for residential or agricultural purposes that although may generate income, are primarily developed for personal, not industrial or commercial use.

From an investment point of view, there are several advantages of investing in a commercial property than a residential property in India. They include:

  • Commercial properties are generally developed after a lot of research. The developer takes into account things like cost of land acquisition, construction and other costs to derive their profit margins. The property is thus generally at a location that is easily accessible and well connected, amid a catchment area with few competitive projects.
  • It is easier to lease commercial property for longer duration to corporates creating stable, assured rental income for life.
  • A large office space can be divided into smaller sections if need be, ensuring financial liability of the investment.
  • Property management in commercial properties can be managed by professionals and be paid by tenants including reduced stress for the investor as compared to a commercial property.
  • The return on investment on a commercial property is generally between 9-21%, while for most residential property investments the returns are 1-3%.

Speaking specifically about the Real Estate Sector in the National Capital Region, the residential property rates are stuck at the 2013-2014 levels. There is massive inventory with the developers with some reports suggesting it may take over 4 years for the inventory to clear.

The commercial property sector meanwhile is far more better with prices up nearly 45% from 2013 levels and vacancy rate below 5% in many micro pockets in Gurgaon. The demand of office space from corporates, ITeS, and retail are the key drivers of this phenomenon.

Residential Property

Residential property is should be the property one buys for their own personal needs. Various types of residential properties include Villas, Apartments, Luxury Condominiums, Bungalows, or plots of land which one plans to develop later. Typically, a person buys residential property only once or twice in their lifetime. Here one should take their time researching about the property and do so with a clear picture of their current and future requirements in their minds.

Some requirements of residential property are:

  • It should be in a residential area. Buying a residential property in a commercial area makes little sense as one would be constantly disturbed by noises of vehicles coming and departing, of factory activity, and other commercial activities. From a security point of view too, a commercial area has a large floating population which is difficult to monitor.
  • It should be free from all claims and liens. Buying a property without doing due diligence is asking for trouble. At any point someone may take a claim or raise objections which may take years to settle later and cost a fortune in legal fees.
  • It should be a quality construction. If buying built up property it is essential to check the builders previous projects and have an independent inspection of the property from professionals to assess quake resistance and take adequate measures to prevent water seepage from cracks and joints.
  • It should be close to amenities. A recent research has found that most of the house buyers are young couples as their parents already have a house of their own. Independent nuclear families who plan to have children in the future and a big thing to plan for in India is the school where the children will go to. In fact people give more weightage to having a good school near than to markets, religious places, and even hospitals.
  • Other things to look for are the price of the property, law and order condition of the area, water and electricity supply to the property, & distance from work among others.

So we see that the two different types of properties cater to different people with their own needs. While the commercial property is bought with an aim to invest & possibly either rent or sell later, a residential property is bought primarily for self. In both cases it is important to identify the needs or the reason for buying the property, doing due diligence, partnering with the right developer who is honest, has the expertise, and understanding of the local market to get you the best possible deal.

What Is Included In A Letter of Intent?

As it pertains to the buying and selling of an early education company (childcare centers or schools), a Letter of Intent (“LOI”) is a written statement expressing the intention of the participating parties to enter into a formal agreement. A LOI is not a formal agreement or a binding contract. The LOI serves the very…

As it pertains to the buying and selling of an early education company (childcare centers or schools), a Letter of Intent (“LOI”) is a written statement expressing the intention of the participating parties to enter into a formal agreement. A LOI is not a formal agreement or a binding contract. The LOI serves the very important purpose of defying the agreed upon terms of a transaction so there are no misunderstandings between the parties, but it does not provide the detail found in a Purchase Sale Agreement.

Letters of Intent vary in length and amount of detail; however, the goal is to provide sufficient detail so the major concerns are defined but not so much detail that the documentorders on a purchase sale agreement. The following information is found in a well-structured LOI:

A. Date of the LOI.

B. Names and Titles-This area should include the complete names of the buying, selling and brokerage companies and the individual signatories for each of these companies along with their corporate titles … President, Secretary, Partner, Managing Member … etc .

C. Contact information for each of the companies and their representatives.

D. Asset Identification-The LOI should identify the assets to be bought and sold in the transaction. For example: Assets of ABC Childcare, Inc. and real estate held in the name of XYZ, LLC and used in operations of ABC Childcare, Inc. Said assets and real estate are located at 123 Main Street, Any Town, Any State, 12345.

E. The Purchase Price.

F. Amount of buyer's good faith deposit and the company responsible for escrowing the deposit.

G. Terms of the transaction-Examples: All Cash at Closing … or $ 2,000,000 Cash and $ 250,000 Promissory Note at Closing.

H. Information pertaining to any lease to be entered into by the buyer. Example: Buyer and Seller agree to enter into triple net lease with an original term of 10 years and three five-year options. Annual increases in the lease rate will be the lesser of CPI or 2.5% of prior year's rent. Again, the LOI is not drafting the lease. It is only establishing the primary terms.

I. Transaction Contingencies. Contingencies are items that would likely cause the buyer, seller or both to walk away from the transaction should there be a disagreement. For examples:

i. All Cash and Accounts receivable accrued up to the closing date will remain the property of the SELLER.

ii. Buyer's Good Faith Deposit will be refunded in full in the event buyer's due diligence reveals unacceptable conditions.

iii. Buyer and Seller each agree to pay their respective closing costs.

iv. Buyer's Good Faith Deposit will be refunded in full in the event buyer's financing is denied and written verification is submitted to XYZ Brokerage, Inc. on or before July 1, 20XX.

v. Buyer will provide written verification of down payment funds in the amount of no less than $ XXX, XXX upon signing of LOI.

vi. Buyer and seller agree that seller is liable for the payment of brokerage fees to XYZ Brokerage, Inc. in the amount of $ XXX, XXX.

J. Closing Date-The Closing Date should be stated as On or Before … the Closing Date to provide flexibility to parties involved. Unless there are stipulated terms to the contrary or “timeline contingencies”, it should also be stated the buyer and seller agree that the buyer has exclusive right to purchase said assets up to and including the Closing Date.

K. Timeline Contingencies-These contingencies are the ones that keep a transaction moving forward at a timely pace. While nearly every transaction will have its challenges, it is important to closely watch the amount of time used for the various sub-processes like finishing the purchase sale agreement, securing financing, obtaining licensing approval, completing Phase One inspections, obtaining a real estate appraisal , having staff fingerprinted (in some states) … etc. A delay in one process can cause delays in other processes until a transaction stretches to nine months instead of the more normal 90 days. Some examples of timeline contingencies are as follows:

i. This LOI becomes invalid if it is not fully executed on or before X date.

ii. Buyer agreements to provide first draft of purchase sale agreement on or before X date.

iii. Buyer agreements to submit completed financing application to chosen lender on or before X date.

iv. Buyer's lending institution will inform XYZ Brokerage, Inc. of preliminary approval of buyer's financing on or before X date.

v. Buyer's lending institution will inform XYZ Brokerage, Inc. of final approval of buyer's financing two weeks before Closing Date.

vi. Seller agreements to notify state licensing of pending transaction within three days of receiving fully executed purchase sale agreement and notification of buyer's receipt of a Letter Letter from buyer's lender.

L. A simple but sometimes overlooked item. Include language that allows the LOI to be signed in counter-parts. Again, this is a small item but it can save you days in the process.

A Letter of Intent is a terrific tool for helping to get your transaction off to good start and moving it toward closing more efficiently. While the information above certainly is not exhaustive, it provides a great platform. As stated above, always consult the proper professional before acting.

Can I Get a Commercial Mortgage Without a Deposit?

The mortgages typically require the borrowers to make large deposits. The industry standard for their deposits is 20 to 40 percent of the property value. Why? Because they are considered to be risky by banks and lenders. They increase the size of the deposit to reduce that risk. As surprising as it may be, a…

The mortgages typically require the borrowers to make large deposits. The industry standard for their deposits is 20 to 40 percent of the property value. Why? Because they are considered to be risky by banks and lenders. They increase the size of the deposit to reduce that risk.

As surprising as it may be, a higher deposit is not unnecessarily undesirable for businesses either. It comes with its own set of advantages. It reduces the interest rate and the repayments, thus saving a significant amount of money for businesses over the course of the reimbursement schedule. However, for cash strapped businesses, or for high growth businesses whose money is better directed toward powering that growth, a large deposit can be a huge pain point.

But, there is no escape from it. Businesses have to pay a deposit to get a one.

That being said, businesses can avail a commercial mortgage by paying a deposit that is quite close to zero. Here's how.

1. Type of Commercial Property
Every business and its industry has a certain degree of risk involved. This risk changes from one industry to another. Naturally, some commercial properties are deemed to be riskier than the others. For instance, a business that is getting a one for a medical office may end up paying less than 5 percent of the property value as deposit. On the other hand, most other properties like retail shops, office buildings, and the likes, require the businesses to pay at least 20 percent of the property value as deposit.

So, check out the existing industry standard for the deposit of a commercial mortgage on your property.

2. The Type of Lender
Banks have the lowest risk appetite. Here, they make the businesses pay the highest deposits. On the other hand, private lenders typically have a higher appetite for risk. So, if you approach the private real estate lenders, the chances are that you will end up paying a significantly lower deposit than what you would have paid the bank.

3. Trading History
Commercial mortgage requirements change from one lender to another. However, the lenders usually trust businesses that have been in the market for the longer duration. New businesses may be required to pay a deposit as high as 50% of the value. So, if a business wants to take a mortgage by paying a low deposit, then it should probably spend a couple of years in the business first. In the meantime, renting can be the answer to their immediate needs.

4. Security Requirements
This is one of the most effective strategies for reducing the deposit on your loan. Most lenders hold the property you are purchasing as the only security. However, some lenders are flexible on this. They can accept your equity in other properties or your other assets as security for the mortgage and reduce the deposit to a fraction of its earlier value.

Quick Things to Know Before Selecting a Property Agent

Most people save money for years before investing in their first home. Expectedly, a reasonable amount of homework goes in the entire process. Regardless of your experience in real estate, you should consider getting a property agent onboard for the deal. In this post, we will talk about a few aspects that you need to…

Most people save money for years before investing in their first home. Expectedly, a reasonable amount of homework goes in the entire process. Regardless of your experience in real estate, you should consider getting a property agent onboard for the deal. In this post, we will talk about a few aspects that you need to know.

Do I Need Help?

Thanks to the internet, a lot of people believe that searching and listing properties does not require any expertise. Sadly, that is not the case. Yes, all property agents charge a price for the services they offer, but they reduce reasonable hassles for buyers and sellers alike. More than anything else, they know the local market and are capable of offering assistance on most matters. Let's assume you want to sell your house for amount $ X. Your property agent will be able to tell you about the price trends and when you should initiate a listing to get that price or something more. Just by bridging the gap between buyers and sellers, real estate agents keep the market in motion, even when other factors are not favorable. Even during recession, they make things possible for sellers in need of quick money.

What to Expect?

Typically, a property agent does everything from listing properties to finding buyers and sellers. If you are the buyer, they can work as your sourcing agent and can even bid at auctions for a charge. They are extremely well-versed with ups and downs of the market and can also help in minimizing the work involved in documentation and other processes. Once you have handed over your requirements, they will do what it takes to get the deal done, and at all steps, you will be intimidated about the proceedings.

Things to Note:

Before you select a property buying agent , take your time to evaluate their work and services. If a service claims to be in business for a long time, they will have enough clients and will offer references on request. Many agents charge a part of the deal price as their commission, but as a smart seller / buyer, you should find one with a fixed rate. This just ensures that the dealer does not raise the price in hope to get more. Also, check their services. Do they offer basic consultation? Do they bid at auctions? Do they work with investors? What kind of experience do they have with overseas buyers? What are the regions that specialize in? These are just some of the things you need to ask before making your mind. Also, talk to your agent if they can check and complete the paperwork and other procedural formalities.

With very precise range of services, property agents make things easy for both parties. Many times, they have details of hidden deals and can also get you homes in the most unique locations, owed to their industry liaisons. Check online now to find more on property agents, and do not shy away from asking questions related to the relevant aspects mentioned above.

Factors You Cannot Ignore When Buying Commercial Property

Buying commercial property from where to run your business can be one of the best decisions you make especially on costs. It is a much better choice cost wise compared to properties on lease or rentals that can be quite pricey. It is however important to remember that commercial real estate carries more risks compared…

Buying commercial property from where to run your business can be one of the best decisions you make especially on costs. It is a much better choice cost wise compared to properties on lease or rentals that can be quite pricey. It is however important to remember that commercial real estate carries more risks compared to buying residential property since you need to do your research thorough and run a complete analysis before making the final choice and going through with the buying process. Below are some of the factors you should never ignore when hunting for commercial property for your business.

The location

This is very tricky because no one can predict what will happen in the future. The location that looks lucrative today may not be the same tomorrow and you need to tread very carefully for the sake of the business. Consider trends of past businesses in the same area even if you are targeting a new property. You also must evaluate the location in relation to your suppliers and end users Accessibility, not just for you but also for the end users is very important just as is connectivity. Never jump onto a property you like without seriously considering its location.

Modification restrictions

There may be property laws applicable to restrict modification or the property interior or exteriors and you need to be completely aware of this when buying. Start by knowing what your business requirements are the look and the laws and study them well to find out what is allow and what is not allowed legally. It is also important to remember that you may have some maintenance costs to deal with and you are better off being aware of this beforehand.

Support services

They are what will help in the smooth running for your business and in the end will impact on the resale value when the time to sell comes or rental value for that matter. These services include security, lift and parking among others and you should look into them before finalizing your deal on the commercial property. Find out what services are most important for the business and choose accordingly. A property that comes with them all will save you costs of putting what you need in place.

The neighborhood

Apart from having the potential for business growth, the neighborhood should have basic utilities available. You really can not run your business well without proper drainage, water and electricity. It also helps to look at the infrastructure development within the area because such can impact on your business positively and also negatively. Such developments will impact property value too in the future. For instance a railway construction can bring in accessibility to your business but then again you may have to keep up with lots of disruptions every time the train passes by. Find out what impact the developments around the property will directly have on your business and be open to other possibilities too.