Three ways of increasing your property values. Everyday life of any real estate investor is anchored on value addition to any of their property. Note that as an investor no value added, no profits will be gained. Looking at it critically, this concept of value addition in commercial real estate investment is obtainable in other businesses. But real estate investment has various ways of adding value to it and make huge profits within a short time.
what is value in real estate property? Market value, it is assumed that both buyers and seller are quietly knowledgeable about the said property neither the buyer or seller are under pressure to buy or sell and proper time is allowed to market the said property. In case of liquidation value it is also assume that both buyer and seller are well knowledgeable about the assets. Values in use can be describe as the value of the assets to current owner. You should note that investing in commercial property is very lucrative venture. Value of commercial property can be boosted by adding a nice features.
For instance, a value of pieces of undeveloped land can increase exponentially just by applying a little techniques. And a higher profit can be gotten. Property that’s near lakes or beachfront will draw profit. Like, buying raw property near lakes or beachfront and adding some kind of improvements like retail or rental property will surely increase the value of the land.There are different types of commercial property. Offices that is situated in the central business district of a city must have high value. In such area, retail property can yield greater value. Here, we are going to discuss three different ways in which you can add value to real estate properties.
Upgrades and Repairs:This is the first method and one of the lucrative method of adding value to your real estate. Looking at this, it depends on your ability to pin point the important features needed to be added, removed or refurbished. Experts in this method add more value than it is cost to repair, thus making more profits. Here, your creativity matters a lot, the more creative you are, the more value you can add at a lower cost. The process of assessing the value of your real estate what is term as appraisal. A single action by a clever investor can bring change to the system. Many investors may not think this way, some might even see your action as being stupid.
There are real estate investors who can make house which does not fit a particular environment to be one of the best in the neighbourhood . It is matter of thinking outside the box. This misfit could be limited bathrooms or bedrooms or bad floors plans. All these can be changed to a desired taste.
In commercial real estate, many changes to cosmetic fixes such as kitchens and bathrooms add greater value. The ideal here is that you buy at lower cost, repair and upgrade, and sell with higher profit.Shared Units: This area has not be tapped by the investors much but it is inviting. This method is to sell your property to multiple buyers. This is always for a vacation or second home. In this case, you are sharing house with one to four people.
Sellers are seeing it as a way to get more for the house. While buyers seeing it that he/she will be getting half price of the market value. This kind of strategy works well where people want a second home. For instance, a commercially zoned real estate can be improved by turning it into multiple use property.
Such as office, retail and residential. For you to increase more the value of the property showrooms, offices, wholesales sales,car parking stations should be added to the area. Presence of warehouses, factories workshops, brickswork, breweries and gas work will increase the value of the property. Also, value can be added by building ponds, strip malls and apartment complexes.