There are many people who are getting good profits and making a substantial income from the investment made in real estate. But having said that many investors have not been unable to reap those benefits, so as an investor before you purchase any property it is critical that you determine the value before investing on it as you should not overpay in a booming market. This page here will help you learn the value regarding per square feet. By determining the value of the property in the real estate market, cost of replacement, etc. it will help you figure out if the condo you are investing on is worth the money. Looking at the big picture we need to know some facts. Apart from considering the location and the developer’s history, there are a few more things you should determine which can greatly impact the overall price if the condo. One of the important considerations is the neighborhood and if the developer is worth investing or not. It should be accessible to public transport, walking distance to the transit, etc. Analyze the reputation of the developer and also the previous projects. After all this analysis, you should evaluate the value of the project you are keen on investing. The project may have the best features in the city; it may not get you the profits as the unit you have selected is not right. It is here the popular AIMS APAC REIT play a vital role for the investors.

Find the market value

  • The fair market value or the FMV is the amount the buyer spends on buying a property, and the seller is ready to sell at that price. A real estate agent will be able to provide those numbers to you, and these are called as the comparables. These comparables are figures that the agent would have obtained from the homes sold similar in size, area, etc. to what you are looking to invest in the past year. If you do not have a realtor, you can get these records from a tax assessor office.
  • Property evaluation through cost replacement method: Cost replacement is the calculation that you make by finding the cost to rebuild this building in the same way as this property in the same place. It should be inclusive of all the materials, labor and the value of land but excluding the depreciation. This technique should be applied when you do not have comparables or when you want to compare with the market value that you have right now.

Compare resale condos and pre-construction condos: There are a few things that you should consider while determining the value of the property you are investing. You should compare the condos which are up for resale in same or similar locations and also the pre-construction condos.