Different Developments You Can Get From The Top Real Estate Companies

For people searching for an excellent real estate investment, the only logical option you’ve got is to invest in luxury properties. Such structures will offer the right balance of elegant design, exclusivity, highly coveted addresses, sophisticated amenities, and sophisticated branding that those with a taste of the good like are sure to cherish and love. In order to meet the preferences and demands of their high-end market, luxury real estate developers are now offering a wide range of properties that are sure to address various investment considerations.

Kinds Of Properties That Reliable Property Firms Offer

Hotel Suites – When the experience of high-quality hospitality appeals to your sensibilities, your best option would be luxury hotel and hotel residences. It comes with well-loved features like sky lobbies with very stunning views. These features will include sophisticated spas, rooftop infinity swimming pools, and private screening rooms. The promise that these luxury hotel residences offer is fashionable living. Apart from that, you can also choose to let these properties earn an incredible rental income for you in case you are in another part of the globe.

Vacation villas, mansions, and homes – Some rich investors want to make a home out of a quiet pocket of space in the middle of the busy city. These developments will offer mansions, homes or villas that can act as your main residence. No matter what setup you choose, the experience of luxury you get to enjoy remains the same. You and your family can prosper in an exclusive community with its own beautiful tropical rainforest, very spacious areas for different outdoor recreation like sparkling water features and cycling, and a well-designed road network system and master plan. These properties will also boast of different kinds of environment-friendly technologies for harmony with nature.

Luxury apartments and condominiums – In a thriving and dynamic city, it is no doubt that the rich wants to be in the center of it all. They want to be nearby high-end dining and shopping establishments, the central business district, recreational centers, and the top destinations of tourists. For these people, a great piece of luxury property situated in a prime location would be the thing they need. Be aware that some of these residential properties might face golf courses that can provide them with excellent views of the lush greenery from their apartments. Apart from that, the towers housing these apartments can have their very own retail establishments. Thus, residents can have everything that they need without the need to venture out of the community. Most importantly, residents will have year-round accessibility to superlative amenities.

How to Value a Freehold Property

There are no yardsticks to measure the value of a freehold property. This is because evaluating a freehold is not an accurate science. However, you can follow certain guidelines on what you need to take into consideration when valuing a freehold, which is produced by the advisory services that give free advice to leaseholders. You must also take these three factors into consideration:

1. The current value of the property

2. The annual ground rent

3. The number of years currently left on the lease

Also, evaluate the expected percentage increase in property value that results from extending the leases of different lengths, along with forecasted long term interest rates and inflation rates.

Take help from an expert valuer rather than trying to work out a figure all by yourself, to present before the freeholder. An expert valuer will be able to give you the best advice, which will enable you to make a practical offer.

You will find expert valuers online. They will help you with the entire process of negotiation and buying the freehold.

For the benefit of the freehold, most surveyors add a little extra to a property’s value. This is done after comparing it with similar property with the same number of years on the lease but no freehold.

First, approach your freeholder informally, before you serve him with a first notice. This document should include your preliminary offer for the freehold, which starts off the legal process of buying it.

A word of caution. Never produce an initial notice without obtaining an expert valuation. If you make the wrong evaluation in the initial notice you won’t be able to take back the offer. After the initial notice, wait for the freeholder to reply to it with a counter notice by a date that you have given. The freeholder must be sanctioned at least two months from the date the initial notice is served.

If the freeholder is not sending his counter notice within this period, the leaseholders can take matters into their hands. They can apply for a vesting order at a court. It is now up to the court to move the freehold to the leaseholders. So freeholder’s should respond on time to the initial notice for their own benefit.

Buying a share of freehold will make little profit if you already have had a decent length lease. You would still have to give the same authorized costs as someone with a short hire, but would lead to a drop in the value of the property.

Don’t Trust Your Realtor: Common Valuation Mistakes

OK OK… I don’t really mean to not trust your Realtor or other advisors, unless they give you really bad advice, like the three mistakes outlined in this article. Many Realtors understand how to value real estate and can be a great asset (especially the ones that focus on real estate investors), but the unfortunate truth is that many investors and agents make these common mistakes:

· Add value to a property for a bedroom

· Incorrectly adjusting for square footage

· Compare non similar style homes with no adjustment

Add value to a property for a bedroom

This is by far the most common error that I see. In some cases a bedroom will add value but normally you cannot count on it. If a house has more bedrooms it is likely bigger and the large home is more valuable, but the bedroom itself is not adding the value, the square footage is. If two houses are the same size and one has an additional bedroom it is lacking something else OR has much smaller rooms, which will deter some buyers. It is basically a wash for valuation purposes. The one exception to this is if the house does not conform to the neighborhood. For example, if the entire neighborhood is two or three bedrooms and you have a one bedroom, it actually should add value to add a bedroom, even if you are keeping the house the same size. I would be very careful in these rare cases because it is hard to know how much value a bedroom will actually add. So when you are looking at your comps, look at the size and not the number of bedrooms.

This does not hold true for bathrooms. Bathrooms will almost always add value.

Incorrectly adjust for square footage

A less common, but more devastating error that I see is to use a price per square foot model to value a home. Many agents make this mistake. The error is to use an average price per square foot and multiply that number by the size of the house you are trying to value. It is not wise to use this method, especially if your house is on the small or large size for an area. Think about it. Is a 2,000 square foot house really worth twice as much as a 1,000 square foot house that might be next door? The area brings a certain range of values that all houses fall in and the lot values should be close to identical no matter what size house is on it. Using a price per sq foot model does not account for the lot.

It is true that you need to adjust for size, because larger homes carry more value, but it is easy to mess the adjustment up. The best way to do this is to dig into your comps and get an idea for the required adjustment. This can be very tricky because the value per square foot decreases as the homes get larger. It is a safe bet to never buy the largest or smallest house in an area, but if you do, use a very conservative adjustment for size. One rule of thumb that I like to use is 1/3rd of the average price per square foot as the size adjustment. This is pretty close to average, so it is nice; but again is a rule of thumb and is not science.

Keep in mind that the adjustments that I mentioned are above the ground adjustments. Basements do NOT carry the same value. In fact, it is normally worth less than half of the above ground square footage. For example, in a nice area an above ground adjustment might be $90.00 above ground but basements in that area might only be worth an adjustment of $30.00 per finished sq foot. I never have understood this because if finished it is usable/livable space and people love basements. I gave up trying to understand why the basement has little value and have just accepted it. You don’t need to understand why it is true as long as you know it is true and use that to help come up with an accurate value.

Compare non similar style homes with no adjustment

This one makes me laugh when I hear it. The biggie that I see here is comparing the ranch or rambler style home to a home with stairs, like a bi-level or 2-story. The house with no stairs is always more valuable. You need to think of yourself as the buyer and what a buyer would want. Another common example of this mistake is comparing older homes to newer homes. In fact, we just took a call today from a client that was comparing her home to a never been lived in house one neighborhood over. They were almost identical in size and were within a quarter of a mile to each other, but one is about 30 years old and one was just built. Do you really think that someone would buy a used home for the same price they can get a new home for? The newer home is worth more, so it is best to not even use that comp; but if you need to use it, be sure to adjust for the age.

My hope is that by understanding these common mistakes you will be able to come up with more accurate after repaired values, and be a better investor for it.