A Residential Property Analysis - Essay Example

If we think about the investment part for the five-floor building the amount of remuneration is very less since the interest being paid for the investment or capital is very high. The installment paid to the bank every month is almost 10,000. Test1. Comparing the income obtained from similar properties. Other properties get very little income since the way they were built does not produce maximum income.Test2. Comparing the land utilized for the construction, some of the properties are very small not big enough to produce good rental value and some of the properties are very big which can't generate greater rental compared to the market value.Test3. Comparing the number of floors with other similar tenements, more number of floors can get good rent but getting permission from the local governing authority is difficult. Test 4. Best use of the property with its existing physical location, commercially or residentially viable, resale value of the property.

Commercial property: The supermarket where I shop is near to my residence and is on the main road in the center of the city. It is a seven-floor commercial complex built on a 1500 sq. yard plot. The whole cellar is rented out for the supermarket, the upper cellar is rented out for two different showrooms and the rest of the five floors are custom-built as requested by the tenants before the construction of the complex. Since the physical location of the property is in the center of the city a lot of demand is obvious.Tests1. Comparing the income obtained, other properties on the same road are also getting an almost similar amount of rent.2. The land for the complex is enough but the other properties on the same road are much bigger but the global brands pay a greater rent, and are advantageous for the property owner.3. More floors can get good rent but getting permission from the local governing authority is difficult. 4. Commercially considering the complex is rented out for the maximum rent and also to the global clothes brands, telecom giants, chains of restaurants, etc.

The complex is also put to the best use since global brands employ more people and generate huge employment. Hence all the tests conducted bring out the true analysis between the residential and commercial properties.