Archive for commercial sale
Sep
03
Property Title Insurance in the Offing
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Bajaj Allianz, ICICI Lombard in talks with American company to launch the product.
Property transactions in India will soon have an insurance cover to fall back in case something goes wrong in the deal. The country’s two large private sector insurers, ICICI Lombard General Insurance and Bajaj Allianz General, are planning to launch title insurance covers this year.
Title insurance is a cover that protects a potential owner of a property against loss from defects in title. The policy is a retrospective one, where the insured is protected against losses arising from the events that occurred prior to the date of issuing the policy. Globally, the policy is bought by investors, occupiers and financiers.
At present, none of the property transactions, be it large acquisitions or a simple sale of a land or a flat, is covered through an insurance policy by an Indian insurer.
The reason is that Indian insurance companies do not have the underwriting expertise to offer title insurance products. Indian insurers require reinsurance support to be able to offer the product.
Both Bajaj Allianz and ICICI Lombard are in talks with First American Title Insurance Company (FATIC), which will be offering reinsurance support for Indian insurers to offer the product.
FATIC is the largest title insurer globally, with a revenue of $8.4 billion in 2006.
Says Swaraj Krishnan, CEO, Bajaj Allianz General Insurance, “We have had a preliminary discussion with First American Title Insurance. We have asked them to give us the product details. We will be doing a market study, verifying the titles and will file the product with the regulator in the coming months.”
The value of the title insurance cover will be equal to the price of land that has to be acquired. The premium rates will be a function of the value of property, the nature of transaction, which means the size of the purchase, the past history of the real estate property, costs relating to title search and the legalities involved in the title search.
Howden Insurance Brokers is also in talks with real estate developers, financial institutions, law firms, insurance companies and reinsurers to culminate into the next few insurance policies being sold.
Says Anoop Mathur, vice-president of Howden Insurance Brokers, “The value at risk has grown proportionally as the land cost has increased for the real estate developers. Title insurance makes a project bankable and saleable to customers.”
According to Akshaya Kumar, chairman, Park Lane Property Advisors, consultants during due diligence discover 20-30 per cent cases have title defects in them.
Property consultants believe that the availability of title insurance products will boost private equity investment in Indian real estate since most of the institutions are very particular about clear titles.
According to accounting and business consultancy firm Grant Thornton India, private equity firms have invested nearly Rs 25,000 crore in Indian real estate and infrastructure in 2007and, according to industry estimates, the investments are set to grow in the coming year.
“Institutions do not buy even if they have the slightest doubt about the titles. More private equity funds will flow in the Indian real estate if title insurance products are available in the country,” says Anuj Puri, chairman, Jones Lang LaSalle Meghraj, an international property consultant.
Adds Anshuman Magazine, managing director, CB Richard Ellis, South Asia: “Title insurance products give a lot of comfort to international investors to invest their funds in the property markets of developing markets such as India. Since these investors do not invest directly and do joint ventures with Indian developers, the local partners will take care of title issues. But we have also seen foreign investors demanding these products before signing the agreements to develop properties.”
According to Mathur of Howden Insurance Brokers, the two Bills — Land Acquisition Amendment Bill, which has been introduced last month in the Lok Sabha, and the Resettlement and Rehabilitation Bill – will make corporates acquiring land for SEZ or other reasons buy title insurance covers.
Explains Mathur, “After the amendement of the Land Acquisition Act, 1984, the government will not be able to acquire land and make it available for companies. As a result, corporates will have to acquire the land directly from land owners at a higher price. In such a scenario, title insurance would protect project developers from any financial loss arising from any defects in title to real property.”
There are two types of title insurance policies: the owners’ policy and the lenders’ policy. Owners’ title insurance is bought by a buyer of the property. It protects the buyer from all loss or defects in a title.
On the other hand, the lenders’ title insurance is bought by lenders such as banks and financial institutions. Experience in other global markets is that all institutional lenders require title insurance to protect their interests in the collateral of loans secured in real estate.
The policy amount decreases each year in proportion to the loan paid off each year. The policy has a provision for defence cost if a title to the real property is challenged in a court of law up to the actual amount of indemnity provided under the policy.
Land records in the country are not computerised and are not easily accessible.
The deeds registration system is not guaranteed by the state government and is inconclusive; typically leaving buyers with 30 years of title deeds to assess. Besides, the level of fraud in Indian real estate transactions is very significant; and the legal process is slow.
According to insurance officials, four to five foreign title insurance companies are keen to do business in India on this product. They may set up a dedicated company in India or could provide reinsurance support to Indian insurers to offer the policy for this line of business.
Quick Property Sale
Sep
01
Commercial Property “Value Add” Investing Secrets
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The concept of the “Value Add” property is central to success as an individual Commercial Property Investor.
“Value Add” means a property where you can do something as the Property Owner that allows you to increase the Net Operating Income (NOI).
- You “Add Value” to the property
- This drives up the NOI
- Which serves to “Add Value” to the price of the property at the sale.
The Added Value is reflected in your Profits over the life of the project.
If you look at these three bullet points carefully you will see they follow the age old rule: “You must sow before you reap.” You have to put Value In before you can pull Value Out.
And there are two MAJOR keys to success with a Value Add Property.
1) The Property Has To Have Problems You Can Fix.
Classic Value Add Properties are ones with Problems. The bigger the problems the larger the opportunity for adding value and realizing profits.
The obvious example is the abandoned, half burned down wreck of an 80 unit apartment complex. When you take it from zero NOI to 80% occupied and looking good … you will realize a major profit at sale.
More typical examples are the 1980’s complex with a 25% vacancy rate in serious need of a makeover.
In every case the problems have to be ones you can fix. An inexpensive property with lots of opportunity to add value will lose you money if you and your property manager can’t fix the issues that beat down the previous owner.
2) You Must Buy At The Right Price.
In this world where every agent and seller wants your purchase price to be based on on proforma – what the property’s NOI would be if it were fully occupied – the biggest danger in Value Add Investing is overpaying for the property.
Remember to always buy on actual numbers.
No matter how much the seller points out to you that this property’s NOI would be $100K/month if it were fully rented … if the NOI is now just$60K/month … that is what you pay for AND you get an additional discount from Market Cap because of the amount of rehab needed.
Just think… If you overpay for the property you have to add value just to get your money back at the sale. Drive a hard bargain. Use Due Diligence to ferret out every issue that will cost money to address and use this information to drive the price down or get other favorable terms.
Your Secret Weapon here is … Your Property Manager
A top notch local Property Manager knows what problems they can fix and what it will cost in time and dollars. They may even know this particular property and its historical issues.
If you don’t have a Local Property Manager on board who is confident in your ability to address the property’s problems and make a profit … Don’t Do the Deal !
And remember two more things about the concept of “Value Add”
1) You can add value to ANY Property.
Just think of all the ways you could possibly increase the NOI. What would you have to do to the property to give you a high probability of …
- Raising rents
- Raising occupancy
- Developing additional sources of income (RUBS, etc.)
- Bringing in higher quality tenants and decreasing turnover
- Lowering expenses (Utility contract, lower concessions)
2) Value Add Properties have Sellers in Distress.
These Seller’s are not selling for a profit. They are in pain and wanting out and can be very flexible. This is the property where you can often get an Owner Carry or other favorable terms on the purchase.
Here’s to your investing success.
Quick House Sale
Aug
30
Dubai Properties Exhibited at Mumbai Extravaganza Targeting Indian Investor
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Leading master real estate developer Dubai Properties has participated at the premium luxury show ‘Mumbai Extravaganza 2008’ in Mumbai, India to showcase its latest portfolio of realty developments including the latest to be announced ‘Mudon’ project, to an elite audience of high net worth visitors and top tier conglomerates.
Mohamed Binbrek, CEO, Dubai Properties, said, “Mumbai Extravaganza gave us an opportunity to present investors with instant information on the latest developments from Dubai Properties, as well as introduce our latest project launches to a new market.
Indian nationals are amongst the top investors within the booming real estate market in Dubai”.
In 2007, Indian Nationals spent Dh4 billion on real estate in Dubai and over the past 10 years, they have spent a total of Dh6.5 Billion on the Dubai property sector.
While the majority of these buyers were Indians living within the UAE, 10% of them were living in India or otherwise, proving the existence of a substantial demand for Dubai real estate from outside the UAE.
Quick Property Sale
Aug
29
Property Sales Plunge to Lowest Level in 30 Years
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Property sales are at their lowest level since 1978, according to the latest figures from the Royal Society of Chartered Surveyors.
Estate agents all over the UK reported property sales down for November – with most selling only 10 properties in the three-month period leading up to the survey – that works out at less than one a week..
Most estate agents reported having large numbers of houses for sale on their books – and the good news that 14% more prospective buyers signing up this quarter than last.
Sales were double the rate at the start of 2008, before the credit crunch started to drive prices down due to buyers facing difficulties in raising mortgages.
“Many are starting to see the current market as an opportunity to purchase a previously unaffordable property despite the worsening economic picture,” said RICS spokesman Jeremy Leaf.
“Unless people feel relatively confident about their job prospects, they’re unlikely to even try to obtain mortgage finance unless of course trading down or seeking to release capital.”
“Sellers still have to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions.”
“The rise in interest reflects both the drop in asking prices and recent cuts in interest rates.”
The lowest level of sales in the past three months was in London, with just seven homes per estate agent, followed by Wales and East Anglia.
With sales still slumping there has been a continued downward pressure on prices.
RICS found that 76.5% more of its members had seen prices fall locally than rise, only slightly better than the previous months’ negative balance of 81%.
Both the Nationwide and Halifax, two of the UK’s largest mortgage lenders have also recently reported falling house prices in November. The Nationwide index showed prices down at 0.4% and the Halifax down at 2.6%. The variance is due to different sampling methods.
This article was written by eCommerce Associates for Bank — Accounts and our Finance Blog
Sell House Quick
Aug
26
Business Lawyers Hampshire, Commercial Lawyer Hampshire
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Choosing the right lawyer and getting the right legal advice is essential to solving the crisis at hand. Legal problems can be complicated and need expert guidance so that they can be solved satisfactorily. For people living in Hampshire there is no cause for concern as one can find ample number of reliable business lawyers ,commercial lawyers, divorce solicitors, moving house as well as conveyance lawyers.
Commercial law is the body of law, which governs business and commerce. It is often considered to be a division of civil law and treats with both issues of private and public law. Commercial law regulates corporate contracts, hiring practices and the manufacture and sales of consumer goods. And commercial lawyers deal with issues like property development, landlord and tenant, secured lending, buying and selling investment portfolios etc. Commercial property lawyers Hampshire emphasize on speedy achievements, protecting the interests of clients, and giving them a quick and satisfactory result.
Business law consists of several different areas typically taught in school curricula that include the law of corporations and other business organizations, securities law and etc. Business lawyers Hampshire deals and advises regarding partnerships, franchises, sole traders and start ups. They help to grow in business with their effective commercial experience, negotiable skills and eye to minor details. This helps in achieving the objective of the business and maximizing the profit margins.
Hampshire also has reliable civil lawyers along with the commercial experts. A relationship is one of the most important things that human beings cherish. But when it breaks due to some unavoidable circumstances one needs the right guidance and counseling to go through the trauma. Your woes can be perfectly taken care of by the well-known divorce solicitors Hampshire is known for. They deal with clients sympathetically in order to decrease their burden and offer a positive, optimistic, affirmative advice so that they could feel better in future.
Entertainment law or media law is a term for a mix of more traditional categories of law with a focus on providing legal services to the entertainment industry. Entertainment lawyer Hampshire helps to protect the ability of the expertise in the fields of TV, radio, film, and theater production and licensing. They also provide proper professional guidance so that the experts could make the most of their creativity.
Repossession
Aug
25
Two partners of a retail business are in a 5-yr lease, with 3 yrs left. They are disolving the business. They need to sub-lease the retail space to avoid paying the entire 5-yr lease.
Do both parties have to sign the listing agreement with a broker? (In residential sales, only one of the owners can list a home, but both must sign in escrow.)
Please note that I am not asking if two need to sign the LEASE agreement. I am asking if both need to sign the LISTING agreement to have a broker find new tenants!
Sell and Rent Back
Aug
22
Quick Property Sale in Hertfordshire
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One of the most disturbing situations in a person’s life is undoubtedly that of finding himself or herself in a financial crunch. A bad financial situation can have a negative impact on all the other aspects of that person’s life. Everyone knows that the longer you wait and fail to take any kind of action, the more desperate the situation becomes. This is true regardless of the amount of money you need or owe. Debts keep piling up, and debtors find themselves more and more unable to come up with a satisfactory solution to their problem. What is there to be done when you need a large amount of cash and you need it fast? The options you have depend on how desperate your situation is. While there may be several ways out of this financial crunch, you need to acknowledge the fact that each and every one of them has to be weighed carefully, and all their possible consequences have to be taken into account. For instance, you could borrow money from people you know, or you could take out a loan. What happens when you have to pay those people back or when you fail to pay your installments due to, say, accumulating debts and bills? You run the risk of losing everything you have worked for so far.
While some people see it as the ultimate solution, I’d say that fast property sale is the ideal solution for those in need of large amounts of quick cash. Whatever might be the cause of your bad financial situation, releasing the cash tied up in your property is definitely your best option. Many people dismiss this option on account of misinformation. We are not talking about selling your home and being forced to relocate. We are talking about fast property sale for cash with the possibility of renting it back and continuing to live in the same home as tenant until you have managed to redeem yourself financially and are able to purchase the property back.
If you are interested in quick sale in Hertfordshire, you can rest assured that you’ll find at least one investor that can provide you with a satisfactory resolution to your problem. Fast sale Hertfordshire encompasses all the aspects that have been presented above. The traditional ways of selling your property in Hertfordshire are neither convenient nor time-effective. However, quick sale Hertfordshire represents the ideal solution for those homeowners who need to get hold of the cash tied up in their property, and do so within a short time frame. Fast sale Hertfordshire means selling your home directly to investors (no third parties involved) and being presented with the opportunity to rent back for an agreed period of time, at the end of which you also have the possibility to purchase the property back from your buyer. What could be more convenient?
When speaking of property sale in Hertfordshire (or anywhere else for that matter), the first thing that comes to your mind is probably an estate agency or classifieds. Anyone who has sold a piece of property before will certainly tell you that going to an estate agency is neither time, nor cost-effective. If you need to sell your property fast for cash, quick sale Hertfordshire is by far your best option.
For more resources about Quick sale Hertfordshire or even about fast sale Hertfordshire please review this webpage http://www.graystoke.co.uk
Repossession
Aug
21
how to avoid 40% tax on property sale?
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we’re selling a piece of commercial property for a large chunk of change, and moving our business elsewhere. the govt. is going to take 40%, leaving a very small chunk of change, and we’ll be unable to replace our business for what we sold it for. what can we do? how can uncle sam rob us blind like that? is there a way to get the rate lowered?
Quick Property Sale
Aug
20
Sell House Privately: Why the Need to Advertise Private Property Sales
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When you want to sell something, it is important that your product will reach the ears of the prospective buyer. Otherwise, you would be waiting for the sale in vain. How can you sell if you have no buyer? And how can you have a buyer if you do not get enough exposure for your product. This principle applies even if you are an individual who want to sell a private property. Even if you are not born a businessman but need to sell house privately for some reasons, you need to employ advertisement of the private property sales.
To sell house privately needs advertisement just as you would sell any other item. In fact, private property sales needs intensive advertisement since not all have the capacity to buy property nor have the interest in buying the property at hand. With exposure, you will surely find a buy from different places in the country or just within the locality.
Since the private property sales are usually done by owners of the house, a website who caters to one-time advertisement in necessary. Fortunately, there is an online site that caters to this need. One such company is The Big Move Online. This online company provides customized advertisement for property owners who want to sell house privately. This is done by simply requiring the owner to create an account for the advertisement. The owner can make the house description and upload the photos of the private property sales. After which, The Big Move Online will be the one to advertise the said properties to different websites. Depending on the rate paid, the exposure can be too wide that you will have enough buyers calling your home or visiting your account in The Big Move Online for inquiries or possible purchase.
When you utilize The Big Move Online services to expose your private property sales, you will have the following benefits:
Your property will be exposed to nearly 200 hundred websites. Surfers and consumers who are looking for properties for sale can come across your property and buy it accordingly. This means sales for you.
When you sell house privately through the advertisement of The Big Move Online, you will save from sales agent commission. You will be required only a minimal fee and then you will already get enough promotion on your private property sales. Instead of the sales agent doing the sales pitches for you, your property sales will simply be known and you will have sales from buyers. There would be no need of middlemen who may require expensive commissions.
Utilizing The Big Move Online to sell house privately will have full control on the data that you want the buyers to know. It fully provides customized advertisement that you have full control on the description and the photos that you upload on your account.
Because you only spend minimal amount on marketing cost, you can offer the private property sales at more affordable price. The sales agent commission will be slashed down, leaving you room for more markup or lowered price.
Finally, The Big Move Online exposes your house for sale in the Internet. This means higher level of exposure, as we all know that people are now looking into the Internet for resources and information. When the Internet is utilized, there are many possible prospects that will be interested in the private property sales.
Given these benefits, The Big Move Online could help you successfully sell house privately.
Repossession
Aug
19
A Stress Free Way to Deal With Property Sales
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Buying and selling your property is stressful and also involves a lot of money so being prepared to do some research and getting stuck in can help save you a lot of money in all aspect of the process especially conveyancing.
If you are thinking of selling, why not put in a bit of work and save yourself a bundle, once you have decided to go this route, the first step will be to boycott the use of an estate agent. This can save you thousands of pounds as estate agents charge about 2-3% of the sale price. According to Easymove.com selling your property can save you up to £2,000 or more depending on the price of the property.
Instead of using an estate agent try advertising your property on your own. You can do this by take out adverts in your local newspaper and property websites, all these methods costs next to nothing compared to using an estate agent.
However, foregoing an estate agent also means even though you save money you have to do more work. You have to find a way of preparing things like your Home Information Packs (HIPS) which is required by law, you also have to be a tough negotiator making sure you don’t lose out or sell your property below value.
On average conveyancing costs about £1,060 but sellers get to pay a lower amount of about £570 average. Some smart ways of getting your conveyancing done on the cheap is to first negotiate with your conveyancer a fixed fee for the whole work instead of an hourly rate, this saves you a bundle. If you are a buyer the good news is that some of the conveyancing costs are shifted onto the seller.
Also if you consider your self to be a negotiator you should be able to negotiate with your conveyancer so as to get a no fees guarantee meaning should the sale fall through the conveyancer will not charge you legal fees. Something that some conveyance companies are willing to do in order to edge out the competition.
There are also a lot of conveyancing websites which offer low cost, fixed price services which saves the seller a considerable amount of money. Once again the emphasis is on the sellers’ ability to do research, in this case on the internet. The idea on which price comparison website is based has been applied to lawyers in general especially those who provide conveyance services. And this makes it easier for people looking for such services to get competitive rates.
On the other hand if you are bold enough to take on the conveyancing tasks for your property you can try Oyez Straker legal stationers and the Royal Institution of Chartered Surveyors bookshop where you can buy the required forms. They can be reached on 02074052020 and 02072227000 respectively; also don’t forget to contact the land registry to register ownership of your property on 02079178888.
You will have to be conscientious in your conveyancing tasks, for Leasehold properties you will need to make clear how things like ground rent expenses are shared and also the precise terms of the maintenance and management of the property.
Whether you want to handle all aspects of selling or buying a property yourself or want a few pointers on how to go about getting the best deals when it comes to conveyancing the above tips should help you have a less tedious and stress free time.
Real Estate Professionals
