Take triple net (or NNN) leases, for example. Many of us seek to achieve specific financial and lifestyle goals through an investment property – and rightly so! Rental property investments are one of the most profitable and stable physical assets you can own.įactors such as the location and the market conditions you choose to invest in can significantly impact your bottom line and are worth taking into account.Ĭertain commercial leases can also get you better value for your investment. Not all Investment Properties are Made Equal This includes the rental property value calculator, which has been specially designed to guide your calculations and to support you to your end goals. So we’ve made this post to offer deeper insights into the various approaches investors use to determine the value of their rental property. When you know whether or not your investment will generate the returns you seek over the term you wish to invest for, you will better understand whether it’s worthwhile moving forward with your property choice or heading back to the market.īut these critical calculations are also a step where many real estate investors become vulnerable to numerical slip-ups, which can detrimentally affect the outcomes of their investments. We subscribe to a number of sources allowing us to view internal photographs of many sold properties in Cyprus and your particular region (obtained from selling brochures).Īll this information allows us to accurately benchmark and compare your property with properties sold within the immediate vicinity and form the basis of how we arrive at your valuation amount.ħ.So you’re considering investing in a rental property? One of the most important factors to account for before you begin is the profitability of your investment. We confirm both the building and land size of each of these comparable sales with your local council. From the selling agent we will obtain details such as number of rooms, condition of building, improvements, as well as other factors affecting its final sale price.
Discussion with selling agents and councilįor verification, we then speak to the selling agents of each of the properties that we believe are most comparable to the subject property. It should be noted that some of these properties are discounted, and may not really be comparable for a number of reasons, such as differing style, construction type, land size etc.ĥ. We maintain a number of sales and rental databases at our office that we can source, given a number of variables such as type of property, location and date of sale to produce a comparable list of sales. Comparison is the premier tool in arriving at a valuation. We then investigate and qualify what comparable properties have been sold recently within your area. other improvements/upgrades/renovations, etc.layout, architectural design, unique elements.We measure both the building and land size, as well as take detailed notes on crucial aspects of the property, including (but not limited to): As supply and demand come to equilibrium, and then later great prospects in natural gas resources eventuate in Cyprus, property prices will significantly increase. As a result, property prices (buying and rental) had to come down. This dramatically reduced consumer confidence and purchasing power in an already somewhat oversupplied market – since salary cuts were endured, unemployment increased, and as people even lost a portion of their savings – and damaged business investor confidence in Cyprus for the short term. The best example to think of is the Global Financial Crisis and property bubble in 2008 and then more severely in Cyprus in 2013 with the outbreak of the banking crisis. Such conditions influence property prices across the entire island and therefore your property. city, town, village), such as economical and political environment, transport and accessibility, infrastructure, and major developments. This includes all necessary documentation for verification purposes.Ī macro market analysis needs to be put together, looking at general conditions and trends of Cyprus and your property's sub-market (i.e. We obtain information from the client and local council as to the age, construction and size of your building and land, as well as any recent upgrades/improvements. Obtain preliminary information on property to be valued Professional experience, judgment and integrity are certainly required on the part of the valuation firm, of course together with full certification and accreditation.ġ. Below is an overview guide of how Urban Keys undertakes property valuations in Cyprus.Ī great deal of information is collected whilst considerable time is involved in the property valuation process.
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