If you are planning to make an investment on a commercial property in the city of Singapore, it is important for you to understand every aspect of the property exceptionally well. This will ensure that you are able to determine the perfect value (not just the price, but the value in all entireties) of the property and make a profitable investment. Regardless of the purpose of the purchase, it is important to determine the value of a commercial property as it would be of any use if it does not have any financial profitability.

Get a past profit and loss statement of the property

One of the best ways to determine the appropriate value of a commercial property in the city is to evaluate the average income during and post operations that the property makes in a year. In order to be more accurate, you can also collect the data of net incomes for the past five years and calculate the average. In case of new commercial properties, you can use the figures for similar properties in the area. Once you have been able to determine the value of the property, you will be able to calculate or estimate the eventual profitability that you can expect from your investment.

Ask your agent or broker for the IPOD

In order to get the requisite profit and loss figures for the property or surrounding properties, you can request one from the real estate agent or broker you are dealing with, or you can also get one off the internet. This form of documents with the profit and loss statements are often referred to as an IPOD by many real estate agencies and property brokers. However, it is equally important to verify the IPOD offered by the agent or agency with documented records on the internet. This will help you to determine the genuineness of your agent as agents often fabricate records in order to increase chances of sale. Once you have been provided with the IPOD, you can determine the appropriate the value of the property you wish to invest in.

Why is it important to determine the value?

It is pretty simple. By determining the current value of the property, you will be able to estimate the profit that you can make in future by selling or utilizing the commercial property like the Tai Seng Point Singapore. Future developments in the surrounding area will also have an impact on this estimated profitability as locations with developmental prospects will attract more profitable opportunities. Moreover, the yearly increase in the net income of the commercial property or other commercial properties in the area will also help in the calculation of approximate rise in income once the business starts.

Regardless of the location in the city, the type of property, or any other similar factor, it is important to determine the current and estimate the future value of the commercial property before the purchase is finalized. This will ensure that the investment on the commercial property in complexes like the Tai Seng Point proves to be profitable for you in the near, as well as distant, future.

Author's Bio: 

Maryann Wilson has been associated with the commercial property developments in Singapore like the Tai Seng Point for over a decade and has helped many investors make profitable investments on commercial complexes like the Tai Seng Point Singapore.