Showing posts with label rental valuations. Show all posts
Showing posts with label rental valuations. Show all posts

Rental Management Service – A Convenient & Hassle-free Service!


Do you have a house or an apartment or any other property that you have rented to someone? Do you face tough times managing tenants, collecting rents & maintaining those properties? Do you want to get rid of the tension of your property located in a different city? If your answer is yes then the following post might help you out in a big way. Check it out:

Issues associated with renting a property

While we do advocate renting a property, we do not deny the stressful issues that come along with it. Your tenants are most likely to give you following tensions:
  • Irregular or non-payments of rent
  • Untimely vacating the property
  • Unexplained excessive maintenance costs
  • Damaging the property
  • Sometimes not vacating the property
  • Non-payments of public bills


Other than these, other issues may include – finding a new tenant, conducting legal formalities before handover, settlement of dues & several others.



I know after reading all the above problems some of you may have started doubting the institution of renting & it’s very obvious too! So what to do? Relax mate; you don’t have to do anything. Everything will be done by the guys running Rental Management Services.

Rental Management Services


These are new emerging services which take care of all your rental problems. You just have to register with them & pay them a commission from the monthly rent that you receive. These guys will:

  • Collect timely rents for you
  • Find you genuine tenants
  • Maintain your property
  • Complete all the paper works
  • If you desire, sell your property
  • Renew agreements & rental deeds

When we first came across these agencies, we were skeptical about their functioning. But after seeing them work in Hyderabad, we were mesmerized. These guys will definitely take all your tensions & stresses over their mind at just a small cost.



Is it worth paying them?

Just one word – TOTALLY!
You can totally trust them & enjoy your sleep back at home.



Disclaimer: The above post is just a piece of information & is not intended to advertise any agency. Although we trust their functioning, we do not take any responsibility for any of such agencies.


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


Industrial Real Estate – A Treasure?


We recently came across some assignments in industrial area and that gave the way to this post. We thought of accessing this area as an option of investment and after analyzing, we came up with many interesting conclusions.




What is Industrial Real Estate?


All the land and properties located in the manufacturing zone of a city/town can be categorized under the category of Industrial Real Estate. This includes:

  • Industrial Land
  • Industrial Sheds
  • Industrial Storage Spaces
  • Industrial Laboratories
  • Industrial Offices, etc.


In simple words, each and every realty asset class, related to the production/manufacturing of goods & located in the Government-specified industrial areas comes under the periphery of Industrial Real Estate.




What if you don’t have any industry/production unit?


This is the main issue that every investor faces while investing in industrial area. Even we were facing the same issue from a long time and now we are hunting desperately for an industrial asset. Let’s see what made us change our mind.

1
Unprecedented Rental Returns
As has been our philosophy, we pay equal heed to rental returns as appreciation returns; we were astonished by the potential of industrial properties in this aspect.

An industrial land is capable of paying a rental return to the tune of 200% more than an equivalent investment in residential property.

Take for instance, an amount of 5 million INR invested in residential property in India will yield a rent in the range of 8K-12K INR per month; while an equivalent amount invested in industrial area will yield anywhere between 20k-25k INR per month.
2
Huge Asset Creation
Industrial property transactions are dealt in square meters rather than square foots or square yards. The reason being, land is relatively cheaper in industrial areas and the availability is abundant.

Hence once invested in an industrial area, you will have a huge asset created at your disposal.
3
Future Option
In case you or your heirs think of moving into the manufacturing sector, you won’t have to worry as you will have your own land to start the production unit on.

Of course this reason looks stupid and insane but trust us, sooner or later most of us faces this issue. We want to start our production unit, but are inhibited due to the land scarcity issues.
4
Steady Land Appreciation
Also for our readers who are motivated more by the value appreciation rather than rental aspects, industrial real estate provides awesome prospects.

Industrial land appreciates at a slower but steady rate and at the end of a period of 5-10 years; one can expect handsome returns on his investment.

























How can I invest in this arena?

Simple,
  • Look for a cheap land on a property portal on your city and grab a decent amount, in the range of 1000-5000 meter squares
  • Get 2-3 sheds constructed of about the size 300 meter squares each
  • Put up your property for rent and enjoy the spectacular returns for life!

What are the risks in this type of investment? <link> 

  • You may be unable to find a tenant for your property: No issues, you have an asset and sooner or later you will find one.
  • Too much investment upfront: Think of it this way – which other asset class promises you the same passive returns on same investment?
  • Land may get acquired by government if unused: More reasons to cheer up in this case as the new land acquisition law provides more than awesome returns upon acquisition.


Closing Thoughts

We have surveyed a lot in this arena and have come up with the above conclusions. This was the only reason that we took so much time to write this post. After our research and analysis, we feel that we made a big mistake by not investing in this sector earlier. But this is our understanding; you may definitely differ here.




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

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