Real Estate Valuation: How to increase value of your Property?

This is in continuation to our real estate valuation discussions in our last posts:

• Valuation by Rental Prospects - Real Estate Valuations
• Can Value in Real Estate be created, artificially?
• Valuation of Real Estate: How can you value your RealT?

Everyone, including you & us, is looking to make money in real estate & increase valuation of assets. Today let’s discuss how you can increase your assets’ worth manifolds, just by a small manipulation.

Recipe to Increase Asset Value

This might look like an unorthodox and risky approach to some of our readers, but it works.

‘You find an uninhabited area in the city, almost barren land, where no one would want to reside. Increase the worth of the area and exit gracefully.’

To explain in detail, let’s consider the following real case study:

Following is the satellite snapshot of an uninhabited area in Udaipur, Rajasthan (India).

Satellite snapshot of Chitrakoot Nagar, Udaipur

Surely no one would prefer to build a house in this part of the city. But now let RealT Horizon guide you on how to create value in this region.

If you look carefully, you will see some upcoming development in the nearby region (as shown below).

Potential & developing areas marked in red

As the area is uninhabited, most likely you will find the land in the potential marked area in the above snapshot at very nominal price. Now as an investor you have following choices:

If you go for this option, you will help others and make losses yourself. You will purchase the plot and struggle to receive the returns which this property is capable of providing.

You will create a handsome chunk of fortune for yourself by this decision. Suppose you have bought 3 plots here. Construct a building on one plot and sell it at par with your costs. Once one building has been constructed in the area, the prices shoot up for the remaining plots. Now you can make a good fortune on your remaining 2 plots.

You miss out on a golden opportunity in this area.

The reason why this area will develop in due course of time is because there is a developing area in the vicinity.

So in this manner, you have created money out of a barren land, just by streamlining your investment decisions.

Disclaimer: The above analysis is based on our understanding and experience. What happens in future will totally depend on your due-diligence about the area in the picture!

------ Thanks for reading RealT Horizon J ------