New entrants in the real estate investment business make the common mistake of paying too much for a property they invest in. Once they pay more than required, it eats into the profits that they can make, and, at times, may even result in loss. This marks their end in the real estate investment. They burn their fingers by purchasing property that is overpriced and which does not fetch them the desired returns. First time investors generally do not have much of a financial cushion to subsidize any overpriced investment they may have made.
To avoid such a situation, it is essential to educate oneself with the innards of real estate investing. The first thing to do would be to learn the tricks of evaluating the current market value of real estate property that one intends to invest in. This is the very base of successful real estate investing.
Evaluating the property for its current market value and buying it at a cheaper rate is the crux of real estate investing. This is well illustrated in a case where one person purchased a house in a run down condition from an absentee landlord from a different state. Having estimated the property to be worth over a hundred thousand dollars in a refurbished state, he negotiated and got a one-year option for purchasing the property for seventy five thousand dollars.
He spent another two thousand to get the yard; driveway and the house cleaned and pressure washed and within the next fortnight sold it for a profit of fifteen thousand dollars. He was able to make this profit not only by evaluating how much the property would fetch after renovation, but primarily because he was able to correctly appreciate how much it was worth in its run down condition to be able to negotiate for a bargain price.
You can use various approaches to assess the current market value of the property. This would enable you to make a fair estimate when making an investment decision and save you from the pains of being exposed to an unprofitable of loss making venture.
First, you need to check the tax-assessed value of the property you are considering. You can do this by visiting the website of the property appraiser of your county. Then find out the details of a few properties that have recently been sold within the vicinity, say within two to three miles of the property under your consideration. You can get this information by searching the tax rolls of the county. You can then compare the amenities present in the properties which were sold and the one you are considering and make adjustments based on the differences, if any, also keeping in view the physical condition, special features and amenities. Then check and analyze the income and expenses related to the property over the past year to get an estimate of the net income generating potential of the property.
Divide this income generating potential with the estimated price to get the capitalization rate of the property and then multiply the capitalization rate with the net income generating capacity to arrive at an estimated price or current market value for the property.
We all know that bathrooms form an important part of any property. A bathroom is one of the most frequently used rooms in the house. It is also one of the rooms most visible to guests. It can show visitors how lavish the occupants of that house are and also creates a great impression to the outside world.
If you take a look at any property magazines today, you will see that some bathroom design ideas are unique, some are simple and some can be quite outrageous. Different people have different ways of designing their bathroom, no matter how beautiful or weird the outcome may be.
The basic design of a bathroom includes type, style and colour.
There are three basic types of bathroom:
-guest -family, and -the master bathroom.
When developing property, you dont always need to build all three. However, if space and budget dictates, you should definitely consider this in your project scope as it will greatly enhance the value of your property.
When it comes to bathroom style, the most frequently used styles are American, English, Southwestern, Victorian, and the Country look. The final decision of the property developer would be to choose one that matches his target market. Designing a bathroom in a style that does not suit your target market can become a very expensive mistake.
When deciding on the colour of your bathroom, 90% of the time, you should opt for lighter colours. A dark bathroom will not appeal to many people so should be avoided wherever possible.
One very popular option is to go for the natural look, for example a bathroom containing good looking plants, rocks, and falling water. Again, these options would appeal more to a more affluent market and may not appear in a smaller 2 bedroom Victorian terrace.
Other natural bathroom ideas are:
-Natural lighting.
Some people have skylights installed in their bathrooms. This brings the feeling of a natural relaxing environment.
Halogen lights look much better than bulbs and fluorescent lights and should also be considered.
-Natural accessories:
These include objects made up of wood or Bamboo. One important aspect of these accessories is that they are durable and dont break easily.
You could also install a plant shelf or greenhouse window in the bathtub area if space allows.
When designing a bathroom, you should consider the three primary sources of lighting: ceiling-level, ambient and task lighting. Talk lighting could appear around the mirror and throughout the room, for example near your taps, doorknobs, towel bars and toilet paper holder.
If necessary, your bathroom design should also consider using larger tiles to create a sense of space, or rectified porcelain tiles. The rectified porcelain tiles have narrower grout lines making them more pleasing to the eye.
You could also change the door style of the bathroom by using sliding doors especially when the property you are developing is small. For larger bathrooms, you could add a glass sliding door to divide the bathing area and toilet area. The options are limitless.
By planning your bathroom design carefully, you should be able to work with your project manager to create a design that works not just for the property but also for your potential market and most importantly your budget!
Both Kris Koonar & Ben Needles are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kris Koonar has sinced written about articles on various topics from Site Promotion, Certified Public Accountants and Culture and Society. is made easy with Real Net USA. Our four step program of find, fund fix and sell, is your blueprint to. Kris Koonar's top article generates over 550000 views. to your Favourites.
Ben Needles has sinced written about articles on various topics from Business Credit Cards, Anger Control and Business Credit Cards. About the Author (text)Dr Javaid Kiyani is a successful Property Investor and Internet Marketer. His vast knowledge of property investment is evidenced by the books he has written. For a FREE course including regular advice and tips. Ben Needles's top article generates over 550000 views. to your Favourites.