Profits and Extra Costs involved in your Serviced Apartments

If you are relocating and don’t want to sell your house/apartment/flat for nickels and dimes as well as can’t move your well-furnished house as it may be cost double of the property rate. Here is the best solution to tackle your problem from which you can see some profit and at the same time should have to spend on your house/apartment/flat for a makeover that will give a new look to your apartment and change it as serviced apartment, which you can rent and enjoy some good returns on your property.

But the additional cost spent on your apartment to redecorate it and make it fit to rent it as a serviced apartment that will definitely bring you double the returns when compared to the regular lease and many property veterans also support this.

Let us take a look at the process involved in the conversion of your apartment/flat into a serviced apartment:

Additional amenities to add in your apartment

In a realty world, a serviced apartment is considered equivalent to a three-star hotel that comes with all amenities like air conditioners, refrigerator, washing machine, television with cable connection and fully-equipped kitchen and some also have communication facilities like landline and computer with Wi-Fi connection. If possible the owner can also provide laundry service by partnering with the local laundry service provider and can charge the tenant with extra amount.

One of the property experts says, since the individuals needs differ, hence the owner in order to accommodate their needs may have to implement few changes on timely basis that will increase the maintenance cost. In case, if your apartment is in a housing society, one might have to pay additional monthly maintenance costs along with commercial charges and other civic taxes.

Steady flow of clients

The owner must ensure that he/she receives a steady flow of clients and to have this, the owner should tie up with some travel agency and for this the apartment should also be located in a strategic location.

Most importantly, the owners should not price the rental value more than the three star hotels and it should be 20 to 30 per cent less so that travelers choose to stay in your accommodation. And, also make sure that your apartment is located close to any corporate office so that you make a long-term agreement with the office clients.

Rental value on your serviced apartment

One of the real estate market watchers says that by renting a service apartment one could earn annual returns of 10 to 15 per cent of their property value. But, the owner also has to make sure that rental value is evaluated in such a way that it covers the maintenance cost and the related commercial taxes that has to paid.

Housing society standards

If you are changing your apartment into a serviced apartment then the owner should inform the housing society as it is mandatory for the housing society to get a no objection certificate from the local police. The complete agreement is regarded as a commercial one and will cost accordingly by the authorities of civic administration and the housing society.

One of the market watchers also says that as it is easy to get regular tenants for serviced apartments but it is difficult to get permanent visitors and for this the apartment should be located strategically. It is also trending that buyers are buying apartments/flats and converting it into serviced apartments instead of re-selling it or leasing it out.

This article published by Dreamz Infra Blog. Follow Abuse Dreamz Blog for more Real Estate updates and Click 'Dreamz GK Reviews' to see Customers Feedback on Dreamz Infra.

Boom in the Real Estate Market 2014

Prashanth G N says that sound growth in the IT sector has made certain the boom in the real estate market too. It is likely that many significant housing projects would come-up in Bangalore in 2014 that will give the buyers many choices to get spoiled.

The Bangalore real estate market is likely to remain steady in 2014 and 2015, when compared to Delhi, Mumbai, Ahmedabad, Chennai, and Hyderabad says real estate players, watchers, analysts, and developers. The sales in both housing sector and for office space were remarkably good in 2013, which has kept the developers tad bubbly. In 2014 many major projects are set for launch that would definitely excite the buyers. It is likely that the demand witnessed in the year 2013 will also continue this year.

Nagaraj Reddy-President of the Confederation of Real Estate Developers of India (CREDAI) in Karnataka said that due to boom in IT sector in 2013 about 9 million sq. ft. of office space was created that can accommodate around 9 lakh professionals. This increased the demand in housing sector, suppose if 10 per cent of the 9 lakh professionals go for new houses, then the market would have 90,000 readymade houses in two years, considering Bangalore’s capacity to generate 45,000 flats a year. He added that the creation of immense office space will increase the demand for residential space in addition.

Various choices for buyers to get spoiled
The new projects that are set to launch would see a mixed trend of conventional and luxury villas and apartments and are priced in the range of Rs.50 lakh to 1crore and a half. The High nets worth individuals (HNI) have actually showed their interest in all the three projects that are coming-up at Devanahalli, Electronic city and Whitefield. In the entire national market, Bangalore real estate market is fairly well, says Karun Varma a real estate Analyst. Considering the facts like the better rupee-dollar equation, US doing well, and exports doing alright, the housing demand is likely to continue steady. There are around 3-4 dynamic transactions that are expected to emerge as lucrative this year and buyers would left with more choices of residential space with the generation of office and commercial space.

The mid-end segment mainly driven by end-user buyers will lead the residential real estate market, says real estate analyst Naveen Nandwani. Considering the on-going commercial activities and other alternatives available in south-east, north, and east submarkets, it seems the demand is mainly focused for residential units in the range of Rs.6-10 million price brackets. Assuming the projected demand, the capital values in these locations are also likely to see an increasing trend. Taking the factors like the ongoing infrastructure projects like Hebbal-BIAL Expressway, Metro Rail, and Peripheral Ring Road locations like Kanakpura Road, Mysore Road, Thanisandara Road, Tumkur Road, and Hennur Road are likely to observe rising tug activities in the residential market.

The influence of IT sector
Suresh Hari of CREDAI Bangalore said that residential real estate market would likely to decline by 25-30 per cent considering the trend witnessed in the last two years and the approaching election this year. The price appreciation is anticipated to be in the range of 5-20 per cent and the supply in the residential market would be13 per cent or more. The commercial real estate market is likely increase by 5-10 per cent against the previous year, which is again based on the previous trend, office and retail space. Rental value increase by 5 to 20 per cent on an average and the supply front would increase by 5 to 10 per cent against previous year.

Bangalore is not influenced much by the slowdown in the sector, says Brotin Banerjee, MD & CEO of Tata Housing and the city has outdone most of the other top metro cities in the country. Bangalore is hyped as the 10th most favored destination for property investment in Asia-Pacific. Bangalore has been the best performing locations, due to the development in infrastructure and connectivity to Bangalore International Airport Limited in North Bangalore and in the future quarters, Banashankri and Devanahalli localities would outdo due to the advantages in their location.

Developers expect for some relief in the approval system and in floor space index (FSI). It is also anticipated that if government sanctions vertical development beyond 3.5 FSI, then it would be an extra advantage for the real estate groups, as they can build more units if the demand continues to be stable. It is likely that whatever is built in 2014 would sell except if any huge cancellation of office space creation happens.