As we speak Residential Property, financial institutions, stock markets and bank’s interest rates are offering very poor returns & even poorer security for investors. Currently Commercial Property is offering the best returns to investors and also offering the most security for investors.

This is a general guide to Commercial Property in New Zealand for would be investors.

Firstly if you are looking to invest in Commercial Property it is important to identify what your investment goals are. These may range from short term capital gains by buying and selling to long term cash cow investment and even negative investments that are deliberate tax deductible. Once you have established what your goals are you can then determine the type of commercial property you should pursue.

The age old adages of high risk = high return and low risk = low return are simplistic ways to differentiate between the types of commercial property investments available. That being if you are looking for a long term investment with capital growth you will most likely look at low risk investments such as properties with banks, petrol stations and other similar solid tenants. However if you are looking for short term capital gains most buyers will look to either purchase a property at a sharp price for resale, add – value to a property for resale or acquire a vacant property with the intent to tenant it for resale as well as other capital gains vehicles.

Once you have identified what type of investment you wish to pursue the next step is to identify what areas you wish to invest in. I recommend that investors should predominantly invest in areas they are familiar with (so that they can readily view the property and are also able to readily assess the local market), however if investors have valuable and reliable investment advice to call upon then this rule need not apply. However be wary of individuals touting themselves as commercial property experts, whilst many may claim they are the majority without doubt are not.

Next is how you plan / strategise to purchase the property. If you are looking to secure any property at a sharp price never underestimate the power of an unconditional offer. An unconditional offer can be compared to flashing a briefcase of money in front of the vendor and more often than not tempts an owner into accepting a previously unacceptable price.

Once you have purchased a property it is important that you have a clear plan and goals that you wish to achieve. As Commercial Property is generally a business investment it is important to treat it as such, ie if the numbers stack up then a vendor should seriously consider selling and reinvesting that capital in another project. Never underestimate the value of making a smaller gain right now and reinvesting the money into another project.

A clear exit strategy is a central element for business decisions in general and no more so than in Commercial Property. Too often Commercial Property vendors think with their emotions rather than with their heads in their decision making. Commercial Property is a business investment and I cannot stress the importance of seriously considering offers if they stack up.

In summary Commercial Property is at present one of, if not the best investment vehicle available in New Zealand. My best advice for would be investors is to align yourself with an individual experienced / knowledgeable in Commercial Property. The value of having one trusted agent / broker or adviser will be immeasurable over the long term. Repeat business will also ensure that you also get offered the best properties first.

By: Benjamin Jones

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Gurgaon, the commercial hub of India, is one of the most developed cities in the country. Over the last decade, Gurgaon has seen some of the major upswings in its real estate market. The prices of the commercial as well as residential properties are on a high on a regular basis. Moreover, the close proximity of the city to the airport has also give an edge to Gurgaon over the other major cities in India.

Why Property Rates are High in Gurgaon?

The property rates of Gurgaon are much higher as compared to other cities of India. This is due to the set up of innumerable industries and multi-national companies in Gurgaon. These firms need commercial properties in order to set up their offices in the city. This has resulted in the price hike of commercial properties. People from all over the country live in Gurgaon to work in these companies. Due to this, there is also an increased demand regarding the residential properties, which include flats, apartments, and condos.

A Profitable Residential Investment

Although there is constant increase in Gurgaon properties; more and more people are continuously investing in these properties. It has been analyzed that the value of Gurgaon Property is likely to increase by 15-20% in the next few years. The availability of good accommodation and the qualitative construction of these houses had made Gurgaon the hottest suburb for investment purposes.

Emergence of Many Luxurious Accommodations

Since 2004-05, many luxurious segments with all modern amenities are being offered to the customers. These include MGF Vilas, DLF’s Aralias, Aralias II, Unitech Larma Lakelands, DLF’s Magnolia, and Ambience Caitriona. There are also some middle and high-end budget projects planned at Sohna Road, Old Gurgaon Road, MG Road, and Golf Course Road. The projects built around the golf course area are constructed as high-end apartments and villas. These accommodations are expected to start from the price range of USD one million dollars.

By: Parbhat Kumar

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Property and casualty insurance takes care of many risks to the individual or the business’s property, such as theft, damage, loss of money, furniture, machinery, records, even trademarks, brand names, and supplies. There are certain particular insurance policies available which cover natural disasters like earthquakes, fires, and floods which damage your residence or business.

Your property can get insurance for multiple or specific dangers. You will be asked to identify very specifically what was lost in the incident. An example being, your house burns down, you may make your claim under “fire disaster property insurance”, so long as you explicitly asked to have your house insured from fires. Other disasters very commonly covered: lightning, flood, explosion, earthquake, and theft. One should consider the potential dangers of their property and location to decide upon a sound property and casualty insurance option. If careful planning is not used, you may find unnecessary expenses for insurance you don’t really require.

If you acquire what are called “open perils”, these cover all the causes of damage and loss, which are not excluded by your policy. Unless the contract denies it, you should be able to obtain assistance from the “open peril” insurance for almost all instances. If you decide to refuse coverage for floods, obviously you won’t receive reimbursements for damages caused to your home or business by flooding. You will find these items on the list of exclusions to open perils: earthquake, war, nuclear incidents. Your property might be susceptible to such events, and you will be able to purchase specified property and casualty insurance for these open peril circumstances. People on the west coast may want to be conscious of earthquake dangers; people in the south may consider tornado dangers, while people in Hawaii may have the potential danger from volcanic activity.

The property insurance premiums may be lowered if one has a positive claim history. Costs of property and casualty insurance may be reduced if one takes smart and proper precautions to avoidable damages. Examples being, smoke alarms, security cameras or personnel, flame retardant furniture, flame resistant building materials.

Many businesses and companies will often choose to insure their properties with what is called a BOP or business owner insurance policy. Property and casualty insurance, and liability insurance get combined into a single policy, to create these business owner policies. Some of the BOPs offer added expense interruption insurance. There is an option for “added expense insurance,” this giving you money that covers short term moves after incidences covered by the policy. This type of insurance will cover moving costs due to something like a flood. Interruption insurance covers losses of profits in case of interruptions, like requirements to retrofit.

BOPs typically provide less coverage compared with traditional property and casualty insurance, albeit convenient. So this is why many businesses and home owners decide to opt for additional coverage, as every location and situation may require a different level of care and caution. Be smart.

By: Abu Monsur

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