Placing a value on a commercial property purchase is the key to making future profits and avoiding potential losses. Investors need a simple but accurate way of determining both the current price and the future earning potential of the desired commercial property purchase. There are three methods t...
All these are very much variable from property to property. However, in this method a very rough idea of the value of the property may be obtained. For convenience, the value of a property is reduced to an unit basis for comparison purpose e.g., per square metre or cubic metre, etc....
Negotiating rent for a commercial space can get quite complicated. A prospective business tenant knows its costs of doing business and its anticipated revenues, and the tenant will want to fit rent into its costs in such a way as to achieve a certain level of profit. The property owner knows...
Depreciating investment property can be a significant tax benefit. Depreciating commercial property is different than depreciating residential property, and these differences can be used to take full advantage of the tax benefit. Straight Line Depreciation Step 1 Calculate the total cost basis of th...
To do the straight-line method, you choose to depreciate your property at an equal amount for each year over its useful lifespan.Use the following steps to calculate monthly straight-line depreciation:Subtract the asset’s salvage value from its cost to determine the amount that can be ...
Discounted cash flow is the discounting of future cash flows to the present. Commercial real estate includes office buildings, shopping malls, factories and vacant land. The terminal value is a key component of asset valuation. Calculate the terminal value by assuming that the property increases in...
Commercial property tax deductions Any property taxes you pay on a commercial property you rent out to commercial tenants are deductible. Therefore, quite a few expenses related to owning a commercial property you can deduct on your income tax return. For rental properties, you can deduct current...
Cap Rate = Net Operating Income (NOI) / Current Market Value You can also turn this formula around to calculate other variables. Want to know what you should pay for a property? Net Operating Income / Cap Rate = Value Curious about what your net operating income will be?
As a commercial real estate investor, one of the key questions you’ll need to ask regularly is how your assets are performing.
How To Calculate Goodwill Goodwillis anintangible assetfor a company. It comes in a variety of forms, including reputation,brand, domain names, intellectual property, and commercial secrets. Assigning a numeric value on goodwill can be challenging. However, the need for determining goodwill often...