Commercial Property Purchase - Needs a well Inspection...

As a real estate agent it pays to have a good approach to listing commercial property. A system to the process is a good idea. Not only will a system help you ask the right questions, but it will show your professionalism to the property owners.

When you are listing in a competitive market place it is highly likely that another agent or two will be inspecting the same property later in the same day. It thereby follows that the agent that is the most professional in the inspection process is highly placed to win the listing.

When times are busy you could be inspecting 2 or 3 properties a day for the purpose of listing. So a property inspection process is valuable to you in your listing conversions. I split the process into 2 levels as below.

My inspection process of a commercial, industrial, or retail property could be similar to the following:

The Preparation

·          Check out the property title ownership detail before you get to the property

·          See if any encumbrances or rights of way impact the property and if so how

·          Get a copy of the local survey plan for the street and area

·          See what the zoning and building codes do for the property

·          See if there are any orders or notices on the property at the moment in the local building authority office

·          Research the property sale and rental history over the last few years

·          Review the tenant mix and lease profile from known leases

·          Get details of recent comparable sales and rentals in the area

·          Look for comparable properties in the same area that may be for sale or lease now and that could impact the marketing of the subject property

·          What vacancy factors exist in the property currently?

The Inspection

·          Check out the boundaries for the property and proximity to neighbours

·          Walk the local street to understand visibility and access to the site

·          Look at the signage of the property for identity and impact

·          Review the building improvements for suitability and function. Are they what the market wants today?

·          Get a copy of the tenancy schedule for review

·          Ask about building income and expenditure performance (especially if the property is for future sale)

·          Walk through the property with the owner or landlord whilst asking questions about current property performance

·          Review lettable space and common areas for practicality and operation of the property investment

·          Look for any vacancies and see if they are dragging down the function of the other tenants nearby

·          Ask about anchor tenants if they apply in the property and get copy of the leases to see the terms of occupancy.

·          Take plenty of photos that can help you later with notes and review analysis

When you inspect a commercial property for the first time it pays to have all the facts researched before you get to the property. In the actual inspection get more details from the property owner on current issues and concerns. As a general rule do not price a property at the inspection. It is far better to take the inspection information away for greater analysis. You can then formally present your findings to the owner at a later meeting.

Preparation is the key to a good property inspection. It sets the scene for the later listing pitch with the property owner. When you know all the facts and you have fully researched the property it is far easier to close on the listing.

www.jaipurpropertyclub.com

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Home Office Or Outdoor Office - Which is Good ?

Is a home office appropriate for every business?  Of course not.  But, if you’re creative and disciplined, I think the positives far outweigh the negatives.  What do you think?

Let’s break down the home office debate into personal and business considerations:

The Business Case

A home office is much cheaper. For start-up or established business, paying rent, utilities, and other costs for an outside office create a significant monthly revenue threshold. Plus, while tax guidelines are fairly strict, you can deduct some portion of expenses you would have paid personally, prorating utilities, some maintenance, and even depreciating the portion of your home you use for a home office. (Keep in mind taking depreciation can make accounting and tax considerations a little more complicated when you sell your home, so look before you take the depreciation leap.)

Increased (and convenient) availability. I have clients around the world, so I often adjust my schedule to their time zones. With a home office I don’t mind phone calls during non-office hours since walking down two flights of stairs beats driving to an external office every time.

Show never equals go. A fancy space at a prestigious address may initially impress potential clients, but eventually you are judged on the quality of your products or services. If you do great work no one cares where your office is located.

Your home office can be a home-court advantage. An outside office is to a home office what an apartment is to owning a home. If you rent or lease you’re limited in the changes you can make to the space, and when your lease is up those improvements are often lost. With a home office you call the shots and the money you save on rent can go to improvements. My home office is about 1,300 square feet, has a great view of the mountains, and the office dog can hang out with me. I hate to think how much a similar commercial space would cost.

A home office is like an entrepreneurial litmus test. Many people feel they will lack self discipline and focus if they work from home. Sure, you may feel you need the motivation (and validation) that comes from having an outside office… but when your paycheck is based solely on your output motivation shouldn’t be a problem. If it is, owning your own business probably doesn’t make sense.

The Personal Case

Adds value to your home. Turning your dining room into a home office could negatively impact the value of your home, but if you re-purpose unused space, or better yet add on, you benefit personally. Plus home offices are very popular with home buyers. A local real estate agent told me at least 2/3 of her prospective home buyers list a home office as a “must have,” even if only for personal use.

It’s greener. No commute = fewer emissions.

A home office creates more family time. One person left this comment on Michael’s article: “I just didn’t have the heart to turn away my 3-year-old daughter who was excited to have daddy at home all the time.” I understand the feeling, but think about it: Home office or external office, you’re not available. The only difference is you don’t have to face the fact your daughter misses you when you work from an external office; either way, she misses you. On the other hand, time spent commuting is family time lost. If your one-way commute is twenty minutes, that’s at least 160 potential family hours gone — forever.

www.jaipurpropertyclub.com
 
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Which is Better - Apartment Vs Independent House

WHAT IS THE BUILDING CONSTRUCTION SCENE IN INDIA TODAY?

Growth and prosperity of an economy, to an extent is reflected in its physical appearance. In the last few decades the Indian economy has witnessed hectic and massive construction activities, new structures have been raised, townships have evolved and housing especially in the apartment segment has multiplied exponentially. And so today people have a lot more choices when looking for a house.

COMPARE AN APARTMENT WITH AN INDEPENDENT HOUSE IN INDIA?

1. APARTMENT: Nowadays most of the immigrants coming into cities are buying apartments for the following reasons:
2. The exorbitant cost of land and the headaches involved in getting it registered under their name.
3. People find it easier to buy an apartment from well known builders since the land registration problems are already taken care of.
4. Moreover, the society will look after things like power, water, utilities etc; leaving the apartment owner free from worries on that front.
5. In addition, apartments do have some perks like in-house gym, swimming pool, health clubs etc
6. Children have access to a secure play area.
7. Also, there is a feeling of security in an apartment complex.
8. The common areas and landscape are well maintained. 

INDEPENDENT HOUSE: However given a choice, most people in India, will still prefer to construct their own independent house for the following reasons:

1. An independent house gives them the feeling of independence as they do not have to share common areas.
2. An independent house has space all around for gardening or any other activities.
3. The house owner can have it built expressly as per his requirements and to his liking and with his choice of materials and finishing.
4. The house owner has the option to add floors or increase the area of the building as the need arises.
5. The house owner can get additional income from renting out part of his premises.
6. The house owner need not pay monthly maintenance amounts.

www.jaipurpropertyclub.com

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