Frequently Asked Questions
Q- What exactly is commercial real estate?
A- Broadly defined, the term commercial real estate can be used to refer to any dealing with real property in a business context. It could involve leasing out office space, owning an apartment complex, or selling real property along with and as part of the sale of a business. It might be industrial or agricultural property. It could even involve residential properties like apartment complexes or rental houses being held for business or income-producing purposes. It can even involve working with the government. Unless the property is a residence where the homeowner is living, you are probably dealing with commercial real estate.
Q- Why should I invest in real estate?
A- Investing in real estate has become increasingly popular over the last fifty years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate, it is a lot more complicated than investing in stocks and bonds due to their uncertainty but by investing in real estate you can make sure your “pot of gold” is filled with the real stuff with no fear of ups and downs. One of the biggest benefits of investment in real estate is that real estate valued differently. “Valued differently”, means the amount of income that a property produces is directly proportionate to its worth. So if a property produces more income. Commercial real estate is a great way to increase your personal wealth. You can generate rental income, make property improvements and sell it for a profit, and even leverage equity to purchase additional properties. Growth potential and expected trends in:
Residential
a) Increase in urbanization and working population.
b) High disposable incomes and aspiration levels.
c) Easier access of finance.
d) Fiscal incentives on house loans.
Commercial
a) India emerged as most attractive destination for IT and BPO services.
b) Top MNC’s are interested to invest in India.
c) High-tech office structures for work.
Retails
a) Entry of the global brands (Ex Valmart, Reliance, TATA)
b) India ranked as No. 2 most attractive retail destination by at Kearney.
Hotels
a) Increased business travel both domestic and foreign due to buoyant economic growth and growing FDI.
b) Common Wealth Games will be held on 2010.
We conclude that investment in real estate is directly proportional to money generator.
Q- Who are Real estate agent or Real estate advisor?
A- Real estate agents usually are independent sales workers who provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent’s sale of the property. Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, retail or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Agents who sell or lease industrial properties must know about the region’s transportation, utilities, and labour supply. Whatever the type of property, the agent or broker must know how to meet the client’s particular requirements.
Q- Should I hire a real estate agent?
A- The goal of every seller is to maximize profits, and every prospective buyer wants to get property as cheaply as possible. Having to pay a real estate commission or other professional fees as part of a real estate deal only works at odds with these goals. Consequently, many business people who are sophisticated when it comes to negotiating real estate deals may feel comfortable with doing a lot of the work themselves on commercial real estate deals. However, even sophisticated business people will still rely on professional advice when comes down to actually closing a deal, as the potential pitfalls can be so significant. The bottom line is that you should seriously consider hiring real estate professionals. In addition to these facts there are many reasons why one should hire real estate agent/advisor.
1- Real estate agents have a thorough knowledge of the real estate market in their communities. They know which neighborhood will best fit clients’ needs and budgets.
2- To get straight forward and crystal clear manner of dealing.
3- To get the maximum profit for a short term or long term investment in real estate market.
4- To avoid real estate market fluctuations