Is It Better To Buy Or Lease Commercial Space For My Business

Your business location should be tailor-made to fit with your company budget, spacing requirements and ease of operation. For some business owners, leasing affords a sense of freedom and relieves the financial burden of a down payment, yet may be too restrictive for some kinds of operations. The decision to buy a piece of commercial property offers its own set of risks and rewards, and should be considered carefully before entering into a mortgage contract.

Leasing Commercial Space

1. Cost Effective

Leasing a commercial space will usually require a one to two month move-in deposit, making the rental space a cost efficient way to do business. New business owners may be strapped for cash, and by leasing, rather than purchasing, your storefront or office is cost effective to set up shop with minimal funding.

2. Flexibility

Leasing a commercial space gives the entrepreneur plenty of room to grow, downsize or change locations. Although once you sign a lease, you are locked into a fixed amount of time to make the lease payments, the terms may be only a matter of months to be released and start over in another location.

3. Freedom

Setting up shop without the burden of a mortgage to pay allows a sense of financial freedom. Albeit, a purchased piece of commercial property could be leased or sold to another, there could be months before the owner receives any income from the property. A hefty mortgage may also interfere with business profits and may demand downsizing of personnel.

4. Maintenance

A leased office or shop has a landlord to lean on, taking away tedious responsibilities with the plumbing, electricity and security. In a leasing situation, any repairs or legal liabilities are left in the hands of the building management team.

5. Subletting

In some situations, you may sublet your leased office space to another. However, this must be cleared in writing from the management office, and careful attention given to their rules and regulations for renting out the space.

Buying Commercial Space

1. Secured Location

Buying a piece of commercial property adds assurance that the space is secured and cannot be given to someone else. In a leasing situation, when the lease expires, the renewal process may not have the same initial terms, thus proving unfavorable to renew. However, when you purchase, your prime location is secured.

2. Equity

As with a residential piece of property, a commercial owner may take out cash against the mortgage. In an emergency financial crisis, having a mortgage to borrow from lends a sense of security and provision of funds. Most commercial purchases will require 20 to 25 percent down on the purchase price, giving instant equity to the business owner.

3. Remodeling

When you have bought a property, it is your to do with as you wish. Remolding, expansion and reconfiguration are yours for the taking. The ownership allows the business structure to be molded around the enterprise for a perfect fit and usage of space.

4. Tax Deductions

The interest on a commercial loan is tax deductible, with allowances for deducting any depreciation.

5. Lease Your Excess Space

If you own the property, you may lease your excess space without any restrictions from a third party over your head.

Tips On How To Buy Property In Noida

Being the part of the NCR and a major industrial hub, Noida witnesses a thriving real estate market. Along with industries, Noida is also the major target of world renowned corporate sector. The emerging BPO and the software sector find the place to be apt for spreading their business. This has resulted not only the growth of the commercial realty sector but also the residential realty developments to provide homes for the growing number of urban professionals and business executives.

Whether to get your own home or simply to receive bulk investment returns, to buy property in Noida is indeed a good idea. As an investor, if you are waiting for the right time to buy property in Noida, this is perhaps the right time. The Noida property prices are appreciating, you are sure to get high returns in future.

To buy property in Noida, you would get wide choices. This can ultimately confuse you. The following tips to buy property in Noida, can help you to great extent.

Tips to Buy Property in Noida

Check the legal feasibility and due diligence in the property. If you don’t and if the property happens to have legal issues, this can put you into trouble in future. To avoid such consequences, you are advised to under go a thorough property check with respect to legal terms and conditions.

Visit the site. This would help you to get the idea of the locality where you are going to stay in future. Make sure the place is safe for you to reside peacefully. Check out how long it exactly takes to reach the nearby markets, malls, bus stops, educational institutes, hospitals and such. Take a test drive from your new home to your office and gauge the traffic you would face.

Note down the track record of the developers. This is very important. Often many investors have to wait for long to get the property possession even after payment. Make sure you do not fall in such traps. Go for a renowned builder if you are looking out for a hassle free property transaction process.

Check the correct value for money pricing of the project. Research on the prevalent Noida property prices before you buy. Either you can take help from your friends and associates or simply browse the internet to get the idea.

The Noida property dealers are quite useful. But before hiring make sure you are not a target of any fraud.

Why You Need To Start Investing In Commercial Property

To most of us, investing in a Residential Property seems to be a more lucrative option as compared to investing in Commercial property for sale or commercial property on lease. However, in reality the scenario is totally different. To know more, let us go through some of the pros and cons of investing in residential property.

Residential Property Investment: Pros It is tax deductible: Most expenses related to Residential property are tax deductible. For instance, the depreciation on the property, property loan are all deductible when you pay your annual tax. This is one of the main reasons why investors often make a beeline for investing in Residential properties instead of commercial property. Money minters: Another advantage of investing in residential property is that you get to make a huge amount of money as and when the value of the property increases. This is particularly true in the case when you invest in a property that is situated in a prime location in various cities. Earn from rentals: An investment made in residential property is an investment for a lifetime. This is because after buying a residential property, you can put it for rent or lease it to a company and earn extra income from the rentals. The cons of investing in Residential property : Why invest in commercial property in Mumbai (and elsewhere ) Rise in interest rates: Many a times, the interest rates of residential property may rise overnight, leaving investors in a lurch. This is not the case with commercial properties and hence, it is a safer bet particularly if you are taking a loan for investment. Bad tenants: Okay, so you give your property for rent and earn extra income. But what if you get really bad tenants/occupants? They may not pay the rent on time, cause damage to your property or even carry out activities that might not go down too well with those living as their neighbors and for that matter you. Commercial property on lease by various companies, won’t encounter such problems. Developing it can take up your time: Many a times, investing in residential property can take up much of your personal time since sooner or later, you might end up using it. This is the reason, you’d want everything to be perfect. Commercial property on the other hand, needs less attention from you as an individual and hence it is a safe bet.

So, these are some of the pros and cons of investing in a residential property. I am sure that after going through them, you might want to reconsider and invest in commercial property in Mumbai. You can either go for commercial property on lease or commercial property for sale – whichever falls within your budget constraints.

Bring a unique change in life with Supertech Safari

Supertech Ltd. is offering Supertech Safari Noida flats in Tower-H of Up Country residential venture, a newly released high-rise residential venture at Yamuna expressway, Greater Noida. These supremely finished studio spaces with a fixed dimension of 495 sq ft are being offered at prices which will not pinch the buyers of these abodes. An investor can choose between three major payment plans which includes Construction linked Payment plan, Down Payment plan, and Partial Payment plan, while buying a studio here. Floor-plan of Supertech Up Country Safari studio apartments includes 1 bedroom cum drawing room with attached terrace, 1 toilet and kitchen area. Supertech Up Country features facilities like – Lush-green landscape designs, power packed recreational centre with Gym,squash Courts, Manmade beach and duck pond, Swimming Pool and much more. Public facilities like school, commercial plaza and Hospital are located within the township.

Supertech Safari Studio Yamuna Expressway apartments have excellent and decorative offering & accessories. Apartments have completely brought in floor tiles and floorings which give these apartments a great look and feel. Apartments have steel covered windows and moving gates with tarnished glass. Kitchen has all the accessories which might be required by a professional cook starting from a stone kitchen place top stainless-steel drain etc. Apartments also feature of excellent furniture. One 3-4 seater sofa, 1 personalized TV stand with cart, 2 bed-side tables with storage space, 2 house ottoman, 1 part table for house, 1 oak timber table 1 table with lighting and seats, 1 queen-size bed with head board and recessed storage space for additional storage space etc. are provided. Especially designed, timber made clothing closets with integrated luggage and shoes racks are also provided.

Placement of Supertech Upcountry Safari Studio Noida on Yamuna expressway makes this place near to Gautam Buddha School. F1 track and recommended Jewar Airport terminal are also in near place. This studio room residence venture in Upcountry Township is really near to Pari Chowk and is incredibly near to places like Mayur Vihar, Akshardham Temple and CWG Town with the help of the Noida Expressway. It is also well connected with Anand Vihar ISBT through DND flyover and Noida expressway and to Atta Market through Dadri road and Golf course. The designer has obtained the interest and trust of customers through visibility in working and offering best quality results. Supertech presently is probably the most reliable real estate manufacturers when it comes to offering guarantees promptly.

Making The Grade Understanding Commercial Property Ratings

If you’re looking to start up a business in Sydney CBD, one of the greatest challenges is finding suitable office space. Unlike looking for a flat or home, your commercial real estate is critical to your business – location and appearances are everything; but how do you balance the best expensive costs of prime commercial with your operations budget?

Australia has a commercial property rating system that helps businesses determine which type of property is best suited for their needs. From the most expensive Grade A Sydney CBD locale, to Grade D bare bones facilities, find out what grades of commercial property are out there and what it all means for your business.

Which Grade of Commercial Property is best suited to your business needs?

Grade A: Grade A properties are prime locations in highly sought-after addresses. The properties will be in the heart of the financial or business districts and be relatively new or recently refurbished, with state-of-the-art fixtures and fittings. Rents in Grade A offices will naturally tend to be higher, catering to the executive classes of Fortune 500 companies. Traditionally, Grade A property tends to be leased or bought by banks, brokerage houses and high-profile law firms. Meanwhile, with the latest boom in the demand for sustainable and ecologically advanced premises, many of the newest “green” buildings tend to fall within the A Grade. Cities like Sydney always growing and Grade A property is now available in many outside of the immediate CBD to business districts in the City Fringe, including Surry Hills and Pyrmont.

Grade B: As Grade A property tends to be scarce and relatively pricey, the majority of businesses, especially newer ventures, will opt for Grade B office space. Grade B buildings will be less expensive but include all your standard amenities to make a good impression. Grade B offices tend to be a little bit away from the prime markets, but they could be on a main strip in a smaller city fringe suburb. Smaller law firms, independent investment consultants or doctors’ offices make great use of Grade B buildings. Many cities have Grade B office building clusters near airports or other transportation hubs, but away from the central “downtown” areas and business districts.

Grade C: Grade C properties are inexpensive, functional buildings. Furniture and fittings tend to be older and buildings are maintained to a lower standard than higher grade buildings. Grade C offices are best suited to call centres, small firms and start-ups and will tend to be older and located farther out of the central business districts. Don’t look for pretty lobbies or plush carpeting in Grade C buildings; these are about function over form.

Grade D: Grade D office space is the least expensive commercial property grade – and for good reason. Office space in Grade D buildings tends to cramped, furnishings and fixtures are relatively shabby. Most of the space in the facilities will be used for storage or manufacturing. Grade D buildings are well outside the standard business areas, often located in industrial parks. Grade D properties are suited for manufacturing or distribution companies that require large warehouse industrial real estate in Sydney or storage space as adjuncts to office space.

Meanwhile, some central CBD areas have gone beyond the traditional grading system. Some of the most exclusive property is now considered “Premium” property above Grade A. Look for these at prime locations with “Harbour Views” and exceptional quality.

Keep in mind that when you pick your commercial real estate, it’s more than just the grade that matters. Consider for example whether you need a store front. You can often go a grade up in your choices by downsizing your space requirements or looking outside the CBD to outer suburbs, such as the City Fringe.

Big Residential Project In Pune

Pune real estate development is booming like never before. Many Residential and Commercial projects have come up in recent years. The reason for Pune real estate development is due to many IT companies as well as MNCs and auto companies having set up their manufacturing as well as corporate offices in Pune. The Radius of real estate development in Pune has extended to areas like Hadapsar, Pashan, Sinhagad road, Aundh, Hinjewadi, Balewadi, Wakad etc., which were once considered as suburbs of Pune.

The trend of real estate projects have changed over the years. Builders and Developers are coming up with innovative projects with international and state of art facilities and amenities. Pune has seen mega residential projects as well as townships.

Among the first mega residential township project was Magarpatta City Hadapsar and Nanded City Sinhagad road Pune.

Magarpatta City is an award winning and internationally appreciated model of integrated development and self-sustainability. Magarpatta City is a city within a city having commercial zone, residential neighborhoods, school, hospital, shopping malls, hotels, restaurants and recreation places. This Integrated Township is spread over 400 acres with Residential, Commercial & IT development along with proper emphasis on Environment, Education, Healthcare, Fitness, Recreation, and Security. Large floor plates are provided for office space with high efficiency and offer seamless scalability options. Buildings are designed as per International norms, state-of-the-art amenities provided like multiple Internet Service Providers and telecommunication, 100% Power back-up, ample parking space, high-end security system etc. Magarpatta City features a walk to work-home-recreation lifestyle, futuristic residential marvels, a very contemporary commercial zone, and a globally renowned IT park. Magarpatta City has also won accolades for eco-friendly features and pollution free environ. With a fully fledged shopping zone, recreation facilities and offices in its campus, just take a walk daily to your office.

Nanded City Sinhagad road Pune.

Nanded City is the natural extension of the world famous and award winning Magarpatta City Model. Spread over 700 acres of lush greenery, Nanded City will house 1/2/2.5/3/4 BHK apartments, bungalows and villas, hospital, school and recreation facilities. The commercial district will boast of a presence of Corporate Houses, IT Players, Animation and Gaming Companies. And with 230 acres reserved for greenery, Nanded City will enjoy pollution free air, eco-friendly features and self-sustainable systems. A life in tune with nature!

Discover Top 10 Secrets Before Buying Commercial Property in Gurgaon

With the tremendous prosperity of business and industries in Delhi NCR, several companies and shopping malls are mushrooming in the capital city of India, but due to lack of space of establishment of further commercial properties in Delhi, the builders are utilizing the nearby associated cities for making further development of commercial complexes.

1. Gurgaon is becoming a demanding place in real estate business both from the context of residential flats as well as commercial properties. The main reason behind this situation points towards the huge impact of improving technology and establishment of infrastructure.

2. Today people are struggling for better prospects so that they can survive in this world of competition in a better way. In search of a better living they are tending to migrate to metropolitan towns and cities and are settling there. Gurgaon can be the ideal place for a better living.

3. Gurgaon which was traditionally not counted under the developed cities have been categorized presently under one of the most prosperous and developed city in India. The Haryana government has taken several initiatives for the improvement of this particular place which is reflected through the infrastructural growth and immense work opportunities which assures career growth. Moreover, due to the contribution of reputed builders such as DLF, Gurgaon have experienced huge improvements.

4. The demand for commercial properties have increased at a tremendous rate in Gurgaon, therefore many companies are offering new projects of construction with such lucrative properties at lower rates at the time of booking.

5. If you are looking for purchasing such a property in this location, you can find out the one that falls well within your budget depending upon your requirements. The companies offer great deals for commercial properties, residential properties, rented accommodations, etc. In case you are not aware of the prices you can take the help for professional assistance for better guidance.

6. Taking assistance from the real estate agents can be the wisest decision since they can guide you to make bright investments which are featured with great growth perspectives depending upon your financial budget.

7. Undoubted investing upon property located in such prosperous areas will definitely yield you profit in the long run since investing upon properties is like investing upon gold where the value will increase in future.

8. Commercial property in shona road is highly on demand. The place is full of greenery and excellent for construction of properties.

9. Due to the excellent connectivity in Gurgaon such as the metro railways which connects Gurgaon to Delhi, Noida and other destinations saves a lot of time of the passengers who are bound to visit these places on a regular basis. All such reasons make Gurgaon a preferable destination for real estate businesses.

10. People residing in Gurgaon are highly dependent upon luxury and hence the builders are showing high interest in developing luxurious malls where within one complex people can shop for clothes, eatables and other raw materials, they will not have to travel to different places to in search of various items. These shopping malls are constructed with all sorts of luxurious facilities such as elevators, escalators, restaurants, well maintained wash rooms for ladies and gents, spacious car parking areas, etc.

Ref. By: http://www.articlesbase.com/agriculture-articles/discover-top-10-secrets-before-buying-commercial-property-in-gurgaon-6813566.html

Author Bio: The author of this article dealing in residential and commercial properties in Gurgaon. Here he is sharing some facts that should be in mind when you are going to invest in commercial property in Gurgaon like office spaces, shops, complexes, shopping malls and more. For more details about commercial property visit at http://www.vipulgroup.in/Vipul-Business-Park-Gurgaon

Commercial Mortgage Modification

In todays crumbling, commercial real estate market, both borrowers and lenders find themselves in quite a precarious predicament. Borrowers struggle to make their commercial mortgage payments, while lenders are crippled by the increasing number of defaults on commercial property. Right now the best solution to this problem is commercial mortgage modification.

Commercial mortgage modification is the process of renegotiating the terms of a commercial loan. This is done typically by reducing the interest rate or monthly payment on the loan. Other benefits to the borrower may include an extension of the loan term, a forbearance or moratorium on payments, and of course an alternative to foreclosure.

A commercial mortgage modification is about risk to the lender. A lender will only consider a modification if a borrower is in default or at risk of defaulting. The most important thing the lender will look at in determining whether or not to modify a commercial note is cash flow. One very important calculation used in determining cash flow is called the DCR or Debt Coverage Ratio. This ratio is used by the underwriters to determine if a modification can be approved. If a property is breaking even, meaning the income generated is equal to the operating expenses, the DCR would be equal to 1. If commercial property has a positive cash flow, meaning the income the property generates is more than sufficient to cover the mortgage payment and all of the operating expenses, the DCR is greater than 1. If the property is losing money, the DCR would be less than 1. A lender will most likely not modify the commercial note, if the property already has a DCR greater than 1. Commercial lenders writing new commercial loans will most likely require a DCR of 1.25 or greater.

The most common form of payment reduction seen in a commercial mortgage modification is when the lender converts a principal and interest payment to an interest only payment. A lender may consider this form of commercial loan modification to help the borrower improve their cash flow. By only paying the interest on the loan, as opposed to principal and interest, the payment becomes more affordable for the borrower.

However, in extreme circumstances, reducing the mortgage payment to interest only is just not enough for a commercial property owner. If a lender sees that the borrower will still have negative cash flow even after reducing the payment to interest only, they may consider a reduction in the interest rate. Although the interest rate reduction may be temporary, it will help the borrower free up capital and maintain the mortgage payment on time. Although uncommon, lenders have lowered interest rates to as low as 1% even, to avoid an even more costly foreclosure.

Principles to measure the value of a property

Both the seller and the buyer of a property are always free to set the prices at their comfort allowing some room for the negotiation. The price of a particular property for which both the parties are agreed is considered to be the best & almost the actual price.

The value of real estate market is more likely the price that a buyer is willing to pay a seller for a property in a normal market operation. Now this price depends on many factors and there are different principles that are used to determine the value of a property. y.

Value by the buyer
A buyer is free to offer any number of attempts to acquire the property and often offer below the maximum price he/she is willing to pay, to give room for some negotiation. Of course, many factors can affect the transaction. Although the seller is under no pressure to sell, the quick decision (and receipt of proceeds from the sale) may tempt the seller to accept an offer price that is less than ideal.

Value by the seller
A seller is free to set the price for the property that makes the sale. Often, the price for the property is set at a figure above the price the seller is willing to accept, to give room for any negotiation. Even the price that the seller is willing to accept not necessarily reflects the exact value of the property. Although if the sellers are not the sole owner of the property or if are the real estate brokers, then the value of the property may be increased by few percents.

Principles that determine the value of a property

Substitution Principle – The property value is influenced by the cost of acquiring a comparable property, i.e., having similar features design and construction, or functional use, that property is being considered
Principle of highest and best use – A property reaches its highest value when given more profitable use permitted by the legal framework of the physical environment in which the property is cataloged. Determining the use of a property must be part of any assessment like if it is a residential or commercial property because the appraiser attempts to identify the economic factors that may be more lucrative to the different uses that can give the field at different stages.
External Factors – According to this principle, external factors can influence property value of it.
Supply and Demand – The cost of any property will always be determined by the number of other similar properties for sale and its relation to the element number of buyers in the market.
Balance – A market in equilibrium will tend to have more properties available for sale than buyers. It is said that the uses of the properties are in equilibrium when a sufficient number of offers of complementary types of properties are available, i.e. when the number of housing units maintained in proper proportion to the number of commercial and industrial units offered.
Change – Give her long life, there are factors that affect the value of the property, whether physical or economic.
Compliance, progression and regression – the value of a house that is at odds with others in the neighborhood can have positive benefits.
Growth, balance and decline – The sharp deterioration of the physical effect dictate that all property passing through the aforementioned
Anticipation – its value is assumed to increase with time
Improvements – The contribution of an improvement to the property value is measured by its effect on market value
Law of Increasing and Decreasing Earnings – Improvements that create a proportionate increase in value or greater, to be acting to profit and when no further improvements then it mark the decline. The valuation methods for residential plots can be different from that of the commercial land according to some top real estate brokers.