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The role of technology in the real estate sector

The role of technology in the real estate sector

Realizing the real potential of the real estate sector can change the economic situation of any country.

Technology has come to innovation due to easy access to the internet and every aspect of life is changing with each passing day before our eyes. However, the general perception is that technology has not been adapted to the real estate sector in the same way as all other sectors. It is no longer the case that a sector that has a cure for economic stagnation, in which 70% of a country’s wealth is located, should be kept completely devoid of technology, so it is important to mention here that the real estate sector I have been using the term property for the last few years.

The meaning of property

This combination of two words, a combination of property and technology, holds the secret of the development of this entire global industry. The combination of property and technology has attracted a great deal of global attention, and new business practices and emerging trends indicate that the global market has embraced the industrial revolution that thrives on this combination of property and technology in the real estate sector. ۔

In such a situation, the effects on the Pakistani real estate market are also significant on which today’s article is based. The real estate sector in Pakistan has long been plagued by fraud and outdated traditions, but things are slowly changing. We see the adoption of new technologies improving information management and making real estate transactions more transparent and easier.

Some about blockchain technology

When it comes to promoting technology in the real estate market, you will see the word blockchain in the very beginning. Even if one does not understand the science behind the word, one can guess that the chain formed from blocks and the data transferred between them cannot be changed in any way due to which this technology can transfer information from one place to another. It is considered completely safe to transfer to another place.

Fiscal transfers and transaction payments are possible through this technology. Forbes, a global journal of blockchain technology, predicts that over the next three years it will be fully integrated into the real estate domain and you will see significant transactions taking place on digital assets.

Benefits and trends

As mentioned a few lines ago, blockchain technology can eliminate the risk of fraud in real estate transactions. This technology increases the speed of data transmission and thus can reduce the duration of any real estate deal.

This is giving rise to a new digital architecture, and issues such as the actual status of land, property rights, land use and property rates are now being determined by artificial intelligence. Where the role of technology is clear and human intervention is minimal, things will go smoothly. In the same way, the blockchain has made things much easier. Many companies today use chatbots, respond to potential clients, and maintain CRM leads. Using AI you can increase lead generation and conversion rates.

Smart contracts

The advent of smart contracts thanks to blockchain technology is also a welcome development. Smart contracts are actually a modern, digital form of paper contracts in which no third party has a role. Both parties are convinced that it is not possible to delete or amend any of the terms and conditions in the terms and conditions on which the deal was struck. According to the global magazine Forbes, smart contracts give you no room for doubt and completely eliminate fraud from day to day financial transactions.

The term Internet of Things

You may have heard the term Internet of Things. The use of this term can be seen in everyday routines, even in every aspect of human life. It is difficult to deny the role of this word in residential and commercial real estate. Those who do not know this may think that it is not a matter of knowing what is going on. This will allow you to have a greater degree of automation and thus facilitate the business.

The Internet of Things serves as a fuel for smart real estate. Commercial real estate, Generation Y trends and the emergence of smart solutions are all due to this term. Moving data from one place to another, setting up indoor navigation systems, workplace optimization and having smart building management systems is also the religion of the Internet of Things. A smart home and building management system increases the resale value of the property and thus the technology can be linked to return on investment.

invest in Commercial Real Estate

Why to invest in Commercial Real Estate?

Any type of property, whether it’s commercial or residential, can be a good investment opportunity. For your money, invest in Commercial Real Estate typically offer more financial reward than residential properties, such as rental apartments or single-family homes, but there also can be more risks.

Understand the full pros and cons of investing in commercial properties is important so that you make the investment decision that’s right for you.

Why to “invest in Commercial Real Estate?”

Commercial properties might refer to:

  • retail buildings
  • office buildings
  • warehouses
  • industrial buildings
  • apartment buildings
  • “mixed use” buildings, where the property may have a combination of uses, such as retail, office and apartments.

There are nuances to managing each of these types of properties. To paint a general picture, let’s examine the pros and cons of investing in a single-story commercial retail building, such as a community “strip mall.”

Positive Reasons to Invest in Commercial Property

Here are some of the pros of buying commercial real estate over residential property.

Income potential.

The best reason to invest in commercial over residential rentals is the earning potential. Commercial properties typically have an annual return off the purchase price between 6% and 12%, depending on the area, current economy, and external factors (such as a pandemic). That’s a much higher range than ordinarily exists for single family home properties (1% to 4% at best).

Professional relationships.

Small business owners tend to take pride in their businesses and want to protect their livelihood. Owners of commercial properties are usually not individuals, but LLCs, and operate the property as a business. As such, the landlord and tenant have more of a business-to-business customer relationship, which helps keep interactions professional and courteous.

Public eye on the property. 

Retail tenants have a vested interest in maintaining their store and storefront, because if they don’t, it will affect their business. As a result, commercial tenants and property owner interests are aligned, which helps the owner maintain and improve the quality of the property, and ultimately, the value of their investment.

Limited hours of operation. 

Businesses usually go home at night. In other words, you work when they work. Barring emergency calls at night for break-ins or fire alarms, you should be able to rest without having to worry about receiving a midnight call because a tenant wants repairs or has lost a key. For commercial properties, it is also more likely you will have an alarm monitoring service, so that if anything does happen at night, your alarm company will notify the proper authorities.

More objective price evaluations. 

It’s often easier to evaluate the prices of commercial property than residential, because you can request the current owner’s income statement and determine what the price should be based on that. If the seller is using a knowledgeable broker, the asking price should be set at a price where an investor can earn the area’s prevailing cap rate for the commercial property type they are looking at (retail, office, industrial, and so forth). Residential properties are often subject to more emotional pricing.

Triple net leases.

There are variations to triple net leases, but the basic concept is that you, as the property owner, do not have to pay expenses on the property (as would be the case with residential real estate). The lessee handles all property expenses directly, including real estate taxes. The only expense you’ll have to pay is your mortgage. Companies like Walgreens, CVS, and Starbucks typically sign these types of leases, as they want to maintain a look and feel in keeping with their brand, so they manage those costs, which means you as an investor get to have one of the lowest maintenance income producers for your money. Strip malls have a variety of net leases and triple nets are not usually done with smaller businesses, but these lease types are optimal and you can’t get them with residential properties.

More flexibility in lease terms.

Fewer consumer protection laws govern commercial leases, unlike the dozens of state laws, such as security deposit limits and termination rules, that cover residential real estate.

The Downside of Investing in Commercial Property

While there are many positive reasons to invest in commercial real estate over residential, there are also negative issues to consider.

Time commitment.

If you own a commercial retail building with five tenants, or even just a few, you have more to manage than you do with a residential investment. You can’t be an absentee landlord and maximize the return on your investment. With commercial, you are likely dealing with multiple leases, annual CAM adjustments (Common Area Maintenance costs that tenants are responsible for), more maintenance issues, and public safety concerns. In a nutshell, you have more to manage; and just as your tenants have to worry about the public eye, you do as well.

Professional help required.

If you are a do-it-yourselfer, you’d better be licensed if you are going to handle the maintenance issues at a commercial property. The likelihood is you will not be prepared to handle maintenance issues yourself and will need to hire someone to help with emergencies and repairs. While this added cost isn’t ideal, you’ll need to add it on to your set of expenses in order to properly care for the property. Remember to factor in property management expenses when evaluating the price to pay for a commercial investment property. Property management companies can charge between 5-10% of rent revenues for their services, which include lease administration. Evaluate beforehand whether you want to manage leasing and the relationships yourself or outsource those responsibilities.

Bigger initial investment.

Acquiring a commercial property typically requires more capital up front than acquiring a residential rental in the same area, so it’s often more difficult to get your foot in the door. Once you’ve acquired a commercial property, you can expect some large capital expenditures to follow. Your property might be humming along for a few months and wham, here comes a $10,000 bill to address roofing repairs or a new furnace. With more customers there are more facilities to maintain and therefore more costs. What you hope is that the gains in revenue outweigh the gains in costs, to support purchasing a commercial property over a residential one.

More risks.

Properties intended for commercial use have more public visitors and therefore have more people on the property each day that can get hurt or do something to damage your property. Cars can hit patrons in parking lots, people can slip on ice during the winter, and vandals can spray paint the sides of the building. Incidents like these can occur anywhere, but chances of experiencing something like these events go up when investing in commercial properties. If you’re risk adverse, you might want to look more closely at putting your money in residential properties.

Registration of real estate agents with FBR is mandatory

Registration of real estate agents with FBR is mandatory

ISLAMABAD: The government has made registration of real estate agents with the Federal Board of Revenue (FBR) mandatory.

Statement about registration of real estate agents with FBR

According to a statement issued by the FBR, registration of real estate agents with FBR has been made mandatory, after which no public or private development authority will be able to do business with an unregistered agent.

According to the declaration, transfer or registration of any kind of immovable property will not be possible without registration.

According to the notification, this condition will be applicable to all housing authorities and corporate housing societies while it will also be applicable to development schemes for residential or commercial purposes.

The FBR said that in case of violation, action would be taken against all such individuals and businesses under money laundering and terror financing laws.

Some feature of a successful real estate investor

Some Features of a Successful Real Estate Investor

It is said that man is a combination of his habits and manners. If you want to be successful, follow the habits of successful people. Success will follow in your footsteps. If somewhere in life you feel that your dreams are not on the path to reality then look at your habits, you must be missing something.

Read today’s self-help books or listen to seminars by experts in mind sciences, you will know that the whole game is about habits and manners. Real estate is also a wonderful world. Apparently wrapped in a chorus, this world has its own secrets and needs. Real estate is the only sector in the world where people give themselves economic growth twice a day and four times a night. The secret lies in the fact that the world’s population is growing and the demands of the modern way of life are changing. When it comes to habits, success in this sector also revolves around a few habits.

This list of habits may change a bit as it depends on the category in which you are working in this sector. That is, whether you are an investor, a realtor, a broker, an agent or a developer, because everyone has their own characteristics for success, but here we will talk about which ones

Believe in homework

This is the most basic and key attribute. Doing your homework before stepping into any place means preparing yourself mentally for that stage.

The point is, since real estate is a game of capital, don’t let it get you down. The best way to do your homework is to talk to experts and spend time learning from specific people in the domain you are in.

Whatever position you are working in real estate, each position has its own mysteries and secrets which are known only to those who have invested time and energy in this sector.

The process of learning from experts and the process of increasing one’s understanding is called homework, which in no case does any harm but is a source of benefit.

Successful people are in control of almost every single moment of their lives. They go to the ground and participate in the decision-making process only after seeing the ground realities. Their decision does not depend on what anyone says, it is the result of their own feelings.

Commitment to expand the investment portfolio

Take a look at the portfolio of any successful real estate investor, you will not find satisfaction in a single investment there, but you will see that there are many types of real estate investing and large investors investing in different types. Are
Successful investment is related to the transfer of capital to different places and markets. A big investor is never satisfied with a few buds while treating ailments in New City Phase 2 Wah Cantt. This means that one never stops after one or two successful investments but keeps looking for different opportunities.

The habit of looking for opportunities in dangers

Granted, real estate is a challenging area. It also demands talent and education. It also requires networking and patience. Successful people are in control of almost every single moment of risk management and assessment.

This means that they know what the dangers are, what the potential is for those challenges, and when the small plants they plant with their hands can become a fertile tree. They know their market and their value in the market. Their hand is like the pulse of the market.

That is, wherever something happens, they know it first. Talk to them about mortgage rates, from the unemployment rate to the real estate sector transformation, talk to them about the economic potential of a particular area or the future scenario, they know everything. And will understand.

Reading habits, understanding of the law

It is often the case that newcomers to the sector do not pay much attention to legal matters. They feel as if someone told them something about a land, as if it were God.

Such people generally do not know what is legal and what is illegal in real estate. What is the significance of NOC i.e. No Objection Certificate, which institution is in charge of land regulation, which documents need to be checked before spending any amount and how much detail needs to be covered.

What is the formula for ownership, approval, demand and delivery and how to complete the checking process of this formula, these are some of the basic questions that need to be understood. While there is a lot of talk about habits for success in this sector, one of the habits is to constantly focus on increasing your understanding and comprehension.

Just like City Business Icons We are providing transfer of any assets as per registry system upon the completion of full payment in City Business Icon I and City Business Icon II

Why is it important for young people to invest in real estate

Why is it important for young people to invest in real estate?

It is said that adolescence is the stage in which a person can determine the pattern of his life. In today’s world where resources are scarce and problems are on the rise, time is of the essence in understanding and transitioning through the ups and downs of life.

In such a situation, it is important to make the process of protecting oneself financially very fast and also to minimize the risk factor in life.

Investing in the real estate sector is considered to be useful for advancing oneself financially in a short period of time. As the population grows and the demands of life change in modern times, there are few avenues where one can safely multiply one’s capital in less time. The real estate sector, however, is key.

The changing demands of modern times

Today’s blog is about how investing in the real estate sector can be a great option in adolescence, where one explores many of the paths that are attractive but risky for rapid growth.

According to the famous American magazine Fortune Builders, investing in land, if done correctly, is beneficial for human beings in all circumstances. Because the demands of modern life are so complex, everyone wants a safe roof over their head.

In this case, the best location and ideal property type are more important. Thus property prices are rising over time

A simple formula for safe investing in real estate

A few lines ago we talked about the right way to invest in real estate. Now the question arises, what is the right way? The correct way is to look at property ownership first.

Focus on whether the property is completely clear in terms of ownership. It should then be checked whether all the legal requirements have been met or not, because without the approval of the relevant development agencies, your investment could be stuck in a capital trap circle which is difficult to get out of if action is taken.

It is important to note here that half of the investment made in the real estate sector in Pakistan is trapped in a capital trap which is of no use. Another important factor is that the place where the investment is to be made should be in demand.

If the location of the property is ideal to be in demand and there is clearance from legal entities then this requirement is also fulfilled.

Another important factor is the delivery of the respective owner, how many projects this person has delivered in the past and what is the reputation of that person in the market.

The benefits of early real estate investment

According to Fortune Builders, if you start investing from a young age, it becomes your “life long vision”. Young people have more options and flexibility than adults to create investment strategies and risk factors.

Research shows that those who invest in real estate at a young age have a strong foundation for a profitable career.

In such cases, the person has less responsibilities and has the ability to make alternative investments which helps in wealth circulation.

Experts say that young people should study various investment strategies, markets and property types before real estate investment so that their exposure can be improved.

Challenges

In such a situation, the youth face many challenges. Turning a hobby into a business brings with it many difficulties and road blocks. In this case, it is important to look at your investment from a business perspective and meet all the requirements. Just like many other projects City Business Icons has launched two major commercial project in wah cantt which is very suitable for young investors.

With adorable structure design, City Business Icon 2 and City Business Icon 1 has become one of most astonishing investment opportunity for investors and business owners. Because of remarkable design and topnotch construction approach CBI 2 is considered as hub for national and international brands.

Most young people get family support early in their careers but most young people have to do it on their own. In such cases, some people who are able to save some money at the beginning of their career are left in a dilemma whether to take a step towards the real estate sector or not.

Those who take this risk with their full precautions can lead a lucrative career, according to the above research by Fortune Builders.

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