A property investment is the biggest step an individual can ever make. However, the challenge comes in when maintaining and enhancing its value. Valuation is an essential task though some owners view it as a gratuitous expense. Asset valuation is vital whether for a new or old. Currently, there is a lot of information going around among real estate agents and over the media. It has made property valuation an overwhelming task. An investor must consider finding the accurate information to get the right value of their asset. There are many benefits of valuing a property. Here are the reasons an investor must value a new property.
Why value a new property?
Ideal for accounting needs
Valuing a new property involves accounting for the cost of land, building and other related expenses. The cost of a building alone excluding land is depreciable and generates a tax deduction. Valuation helps in determining the accurate value of the asset which is critical for liquidity needs.
To determine related expenses and rental prices
Valuing a new asset enables one to know the current market price of a building and rental prices charged on properties of its kind. Valuation is a prerequisite when determining expenses that either increase or reduce a property’s value. An investor, therefore, can assess rental prices and costs.
To determine the right use of the new asset
New property valuation is beneficial when ascertaining the purpose of the asset. An investor would like the highest selling price of their investment. By finding the proper use of property, it can be simple to open attractive rental prices. The owner has to determine whether to use their asset for retail. Industrial or commercial purpose.
To unlock opportunities for additional funding
After the completion of establishing a building, the owner may need funds for development or to maintain their asset. For most banks to approve loan requests, they need a security preferably an existing asset. By knowing the value of the property, one can quickly acquire a loan.
There are many ways that one can utilize to increase the value of their investment. Some of the popular, inexpensive ways of increasing asset value are landscaping, doing basic cleaning, doing a lighting refurbishment, modernizing the interiors, adopting green lifestyle and painting among others. An up-to-date asset valuation is vital for an investor, and the above are some of the reasons to value a new property.…
Property business has turned into a very lucrative business as new investors get into the market. However, this investment requires prior research before investing. Research to determine the kind of properties to acquire and where to buy and invest. There are a good number of drawbacks that new property investors encounter when they get into real estate business. Investors, therefore, should conduct a close evaluation of the most useful business opportunities that can turn in profits on their investment.
Some factors indicate whether a particular place is suitable for property business. Such factors include population growth, rate of unemployment, infrastructure, the state of business environment, climatic conditions and much more. Though most of the real estate investor think that is only worthy to invest in cities, the truth of the matter is that there are other upcoming places to invest in property and get better returns. Below are some of the best places to invest in property business.
Best places to invest in real estate business in the world.
1. Colombo, Sri Lanka
Colombo is the largest city in the nation that has emerged as one of the best places to invest in real estate. Both local and international property businesses are looking for opportunities in this city. The ever rising population growth together with infrastructure and rising economic growth has positively contributed to the increasing real estate investment.
2. Grand Rapids, Michigan
Grand Rapids is a city with an impressive increase in population, and employment. The city is one of the best cities to invest in the United States according to Realtor.com with a real estate growth forecast of 22%, a remarkable figure as compared to other major U.S. cities.
Panama has become an attractive property business hotspot for a savvy real estate investor. The nation is known for its stable government, high growth rate as well as a tax haven. That is why the country has become an investment paradise with bursting opportunities, particularly for the adventurous investors.
It is typically referred to as the boom-and-burst real estate hotspot which has turned into a leading real estate investment hub. The data of 2013 show property prices grow by 30%. Dubai is just a city that draws people from different cultures.
Mauritius is a peaceful destination for real estate investors. Tax benefits in this country have made it one of the leading place to invest in. It is a great tourist destination with amazing sun beaches that attracts a huge number of visitors annually.
Lenders nowadays have become very selective in giving out loans. Therefore, it is vital for every investor to do proper research into the market before investing in it. One best method of doing this is actually by first finding the best places to invest in property business.…