Connect with us

Investment

How to Effectively Assess Property Value for Investment – Entrepreneur

Published

 on


Big data and other tech innovations have made it easier to put your money into a diverse range of real estate.

January
31, 2020

4 min read

Genius Dog 336 x 280 - Animated

Opinions expressed by Entrepreneur contributors are their own.


Real estate investment retains the twin traditional appeals of stability and an almost guaranteed return, but there have been a lot of innovations in recent times that have made it even more worthwhile. The ability to access and analyze data more comprehensively makes it easier to make informed decisions and invest in a diverse range of vehicles. Whichever investment method you choose, however, one constant is that you’ll need to value properties as you work to decide where to put your money. Here are the best ways you can do that efficiently and accurately.

The Sales Comparison Approach

This is the most common approach adopted by real estate investors, and it essentially means comparing the sales prices of similar properties in order to determine what a reasonable price is for the one you’re considering. As usual though, there are nuances aplenty. First, the similarity must extend beyond the type of property to the neighborhood in which it is located, its age, interior and exterior features, size, fittings and a plethora of other considerations. 

It’s also important to note that looking at sales prices is a common mistake to avoid. Asking prices and value are not the same thing. You’ll need to go beyond looking at brochures and actually conduct research into public records to find what amounts have been agreed for those properties.

Related: The New Tax Law Has Made It a Great Time to Invest in Real Estate

The Capital Asset Pricing Model

This model takes a big-picture approach to investing and attempts to determine if the risk you’re taking on by acquiring a property is the most judicious use of your funds. You can do this my modelling what your returns would be in different investment vehicles, especially ones that have little or no risk, such as United States Treasury Bonds or Real Estate Investment Trusts (REITs).

Once that’s done, you’ll need to calculate the potential rental income and then see what buying price would enable you make more returns than the alternatives. That would then be the value of the property to you, and although it might be vastly different from the seller’s perspective, it’s what you’ll have to work with if you’re to make worthwhile profit from your investment.

It’s also crucial to factor in potential outlays like essential renovations, which can be great investments in themselves. Sean Hayes, general manager of kitchen-and-bath retailer Hausera, confirms that, “We found that homeowners spent an average of $12,800 for their kitchen renovation, $11,100 for their bathroom and $10,800 for their laundry room, and the returns on those investments in terms of increased home value were very significant.”

The Cost Approach

The cost approach involves the estimation of how much it would cost to rebuild the property from the ground up, although there’s often a modification in that the estimate is done by using costs for modern construction materials and processes. This is the preferred method with a special-use property, for which it’s difficult to find direct comparisons.

The procedure is to estimate the value of the land, assuming it were vacant. This can be done by considering the sale prices of similar pieces of land. Another factor that must be taken into consideration is what the best use of the land would be and how that would factor into a potential sale price. Next, you’d need to estimate the cost of constructing the building or buildings on the property. You could get a more accurate figure by finding the cost of each component and summing them up, but it’s usually more efficient to get an estimate per square foot for a similar building and then multiply by the size of the target property.

Lastly, you’d need to consider depreciation to factor in how much the value of the property would have reduced over its lifespan. This is usually done using the age-life method, which assigns a potential lifespan and deducts a percentage based on how far along that lifespan the property is.

Related: Learn How to Make Smarter Real Estate Investments

Ultimately, you have a range of choices when it comes to valuing property for investmemt purposes. The commomn key is to ensure that you feed in as much accurate data as you can, helping you make better informed decisions on the path to growing your portfolio and profits.

Let’s block ads! (Why?)



Source link

Continue Reading

Investment

Record investment in MB highways in store for 2023 – DiscoverWestman.com

Published

 on


MLA for Turtle Mountain, Doyle Piwniuk, says he’s looking forward the New Year as one full of accomplishments.

“I’m very optimistic, we have a very big year going forward provincially,” he explains.  “We’re looking at economic development, reconstructing of more highways, like Hwy 23 in the region, and we have more highways to fix.  Going forward in 2023 there will be a record investment in our highways.”

Genius Dog 336 x 280 - Animated

“It’s also going to be a good year for the Turtle Mountains area too because of the opportunities at the International Peace Garden and the economic development in the different communities. I believe we are going to have a very bright 2023,” adds Piwniuk.

“On behalf of my family to your family, I want to wish you a very merry Christmas and a happy New Year,” he shares.  “And, any time you want to get ahold of me please contact info@dolyepiwniuk.ca or you can call our number at 204-552-0130.”

Adblock test (Why?)



Source link

Continue Reading

Investment

Choose Your Investment Guru Wisely – Forbes

Published

 on


If you want to learn how to play tennis, it makes more sense to take the Masterclass from Serena Williams than to watch a random infomercial or a video from your high school coach. If you want to learn about investing you should also seek out the best.

Warren Buffett is verifiably the best investor of all time, with an audited track record going back several decades. Why, then, do so many would-be investors choose other role models, who all too often turn out to be hucksters and hacks—or just plain misguided?

I’ve asked the question many times. I’ve posed it to my NYU finance students each semester for over 20 years. Still, there’s no satisfying answer. I could hardly believe it when Bloomberg reported that Caroline Ellison of Alameda, FTX, and crypto infamy (and the former girlfriend of Sam Bankman-Fried) had supposedly learned investment strategies from Edwin Lefèvre’s Reminiscences of a Stock Operator, a roman à clef based on the life of Jesse Livermore, the stock trader who made a fortune shorting stocks before the 1906 San Francisco earthquake.

Genius Dog 336 x 280 - Animated

I’ve heard other young stock enthusiasts cite the book before. In 2021, Business Insider published a profile of 20 ambitious teen traders. One even mentioned Reminiscences as a favorite book. It’s one thing to read this book as entertainment. It’s another thing entirely to read it as an instruction manual. That’s because the book was published in 1923—long before Jesse Livermore’s last act.

At the age of 14, young Livermore had his first job posting stock quotes at the Boston branch of Paine Webber. His colorful life makes for great artistic inspiration and Lefèvre was probably unable to resist the allure. Livermore made and lost his fortune many times, not a sign of a good investor but rather the clear profile of a gambler and speculator. Livermore was a flamboyant character. He had a railcar, yacht and an extravagant apartment on the Upper West Side. He belonged to exclusive clubs and kept many mistresses. In the panic of 1907, Livermore made a million dollars in a single day. This was real money back then. But by 1915 he had filed for bankruptcy—and not for the first time. In the end, he lost his entire fortune and filed for bankruptcy a third time. This was in 1934, when his assets were listed at $84,000 and his debts at $2.5 million. That was his final business act. His final personal act was to shoot himself to death in the cloakroom of the Sherry-Netherland hotel in Manhattan on Thanksgiving Day, 1940.

In an era where people get their news from TikTok and Instagram, it’s not surprising that they would take the same dumb approach to learning about investing. But if you ever base your investment technique on a novel, be sure you know the ending of the real story first.

Adblock test (Why?)



Source link

Continue Reading

Investment

Government of Canada announces investment in three Waterloo Region tech businesses – ITBusiness.ca

Published

 on


Today, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced an investment of more than $10 million in three Kitchener-Waterloo tech companies.

Miovision Technologies is a Kitchener-based company that lets cities and towns reduce traffic congestion and vehicle emissions while improving public safety through intelligent transportation solutions. With the $7.4-million repayable investment through the Jobs and Growth Fund, Miovision will develop TrafficLink and Scout, its traffic monitoring hardware and software. It also plans to increase its network by up to 100,000 intersections in North America over the next four years, and will further its transition into “Smart City” technologies, expanding its presence globally and adding 58 jobs,

Advanced Electrophoresis Solutions Ltd. is a Cambridge medical technology manufacturer specializing in the development of testing instruments for pharmaceutical companies to analyze protein structures and interactions. The repayable investment of over $1.7 million, through the Business Scale-up and Productivity stream, will allow the company to increase the production of ready-to-use customized testing instruments, and grow its sales and marketing team. Advanced Electrophoresis Solutions is looking to expand its presence in Asia and Europe while also creating 11 additional jobs within Waterloo.

Genius Dog 336 x 280 - Animated

Huron Digital Pathology is a St. Jacobs-based medical equipment company that develops digital imaging solutions in the pathology field for the clinical, research and education markets. With the $1-million repayable investment through the Business Scale-up and Productivity stream, the company can increase the production of its digital pathology scanners. It hopes to revolutionize disease diagnosis by being the first company to bring to market an Artificial Intelligence (AI) enabled image search engine for use in the pathology field. Huron Digital Pathology is looking to increase its productivity. with the goal of producing over 100 scanners every year and creating 11 skilled jobs.

“Tech companies, like the three highlighted today, are what builds Waterloo region’s growing resumé of research and innovation. Canadian tech companies work tirelessly to bring new products and processes to markets that will benefit our regional economy and Canadians,” said The Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario. “The Government of Canada is committed to supporting businesses as they adopt new digital solutions, enhance global competitiveness and create local jobs that will contribute to a growing economy that works for everyone.”

Adblock test (Why?)



Source link

Continue Reading

Trending