The Unique Real Estate Blog

Real estate investing can be an excellent career, if you keep your wits about you and handle things right. However, it’s possible to make big mistakes if you’re not well educated. That’s why knowing about the different types of commercial property can be a big help. Being aware of the different kinds of commercial real estate gives you access to the benefits and drawbacks of each. Here’s a little bit of information to help you get started.

Real Estate Market refers to a market where exchange of real estate takes place between sellers and purchasers. Real estate comprises of commercial and residential property. Commercial property consists of office buildings, office complexes, retail places and industrial premises, whereas residential property consists of independent houses, bungalows, apartments and condominiums. Main participators of real estate market are buyers, sellers, renters, builders, renovators and facilitators. Demand and supply of the real estate market are controlled by them in different ways.

Long Term Tenants Guaranteed

The income derived from commercial property is relatively secure as the properties are let on long term contracts. These contracts or leases can typically be up to 20-25 years with upward rental reviews every five years, which ensures rental yields are kept high relative to current capital values. The key advantage of long term contracts is that void periods are kept to an absolute minimum.

When selling a business, the seller will naturally try to increase the company’s value and reduce its post closing risks or losses. These need to be accomplished, of course, without causing any disruption to current operations. Before putting the business up for sale, the seller must first identify areas of concern. This way the seller will be well-prepared to deal with term sheets and letters of intent, negotiating the terms of the sale, and addressing the issues that may arise during the sales transaction. If a seller fails to address pre-sale planning considerations, it is very likely that the outcome will be unsuccessful.

Did you ever notice that the attitude of a seller of real estate is often substantially different than the attitude of a buyer? Sellers have been known to irrationally claim their property has more value than it does, despite evidence to the contrary.

As the residential property market in Dubai continues to mature, the demand has surpassed the supply in the past two years; it is hardly a surprise that Dubai real estate property prices are increasing so swiftly. According to a recent report from EFG-Hermes, the Regional Investment Bank, there is not going to be any decrease in the property prices of Dubai until 2009.

In order to make wise investment decision, it is of paramount importance that you know how the property market of Dubai operates. This is quite important because Dubai property market is still in its early stages. Therefore, it is hardly a surprise to know that property market of Dubai operates differently from the US or United Kingdom market.

Your business that you poured most of your time, energy, and money into it for what may seem like forever is something you’ve created. You’ve nurtured it since inception. And, you’ve watched it grow up into something beautiful.

To many entrepreneurs, selling your business is like selling your kid.

Below are some basic but key terms to understand when considering commercial real estate investments. These terms will help you in your conversations with brokers, owners, appraisers and lenders.

ARV: After repaired value of the piece of property or land.

ADV: After developed value. The new assessed value of the land after the development is completed.

Compared to purchasing a property that is physically built and ready to be occupied, reserving at Off-Plan stage allows investors and homebuyers alike the opportunity to secure their desired plot/s at a very early stage. Typically, purchasers view the proposed floor plans, site plan, specification, etc. and reserve a plot on this basis. Some developers may even allow keen purchasers to reserve before final planning permission is in place (on the basis that if full planning is not granted, all reservation fees, deposits, etc. to date are returned in full!).