Three Easy Ways To Value Real Estate Investments In Bangalore

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

Have you often wondered how much your investment in real estate is worth? Have you wondered if the price quoted by real estate builders in Bangalore is its true worth or is it higher, and by how much? Read on to understand three easy methods to value real estate investments in Bangalore.

1. Sales comparison approach

One method is the sales comparison roue. You identify properties similar to yours, check out the price of that property sale, and also all the market information. Then, arrive at a value of your property by comparing the properties that have been sold and their price. This is a common method, and is also used to evaluate rents. However, you may need to take into account many factors like the construction quality, layout, design, condition of the property, its age and any renovations made, location and accessibility/connectivity. This method of comparison is also called the market method and takes into consideration the latest sales values.

2. Income route

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

There is one more answer to the 'how much is my home worth' question after you have bought property from one of the real estate builders in Bangalore. The method of valuation is called the income method. This is basically an assessment of how much income-generation power does your property have. It is all about turning the flow of income of your property (aka rent) into a capital amount. This method also considers the cash flows in the future that the property can fetch for you as an investor. The income approach to value property is normally used in tenanted properties. This comes in handy if you have bought an apartment and are planning to rent it out. It can also be useful if you have bought some commercial building and want to know how you can gain some income from it in the future by assessing its current worth.

3. Cost route

Cost method is the third one when it comes to valuing property. The premise of the cost method is that the price you pay for property should not be more than what one would need to spend/pay to construct a similar/equivalent structure. The market tag for a property is equal to the land cost and the cost that adds up owing to construction, by lessening out depreciation. If your property has recently been bought from one of the real estate builders in Bangalore, and is new, this is often the method that is used. The cost principle uses the building and land method to assess value of property, wherein building value and land value are estimated separately and put together to arrive at the value. This addition takes into account services and amenities as well.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: December 12, 2017 — 4:11 am
Property Investment Buy & Sell Guide © 2017 Frontier Theme