Could there be faster appreciation?
Pre-construction condos are a good investment because you can often (though not always) buy them at a discounted price. The developer needs to sell all the units in order to start construction, so they will offer significant discounts (10-20%) off the future list price. This allows you to get into the market at a lower price point and enjoy appreciation as the building completes and condo prices increase.
Are you investing in a desirable and up and coming neighbourhood?
Pre-construction condos offer a great opportunity to invest in up-and-coming neighbourhoods. Developers are always looking for new areas to build in, so they are usually the first ones to jump on hot spots. This means that you can get in on the ground floor of a potentially trendy and desirable new neighbourhood and enjoy appreciation as it becomes more popular. This is an especially attractive proposition in real estate markets that are already hot and prices are high. You might be able to scoop up a presale in a city like Miami, for instance, at a great bargain.
What is the developer's reputation?
When you are considering a pre-construction condo, it is important to research the developer. You want to make sure that they have a good reputation and track record. Many fly-by-night developers disappear after selling a few units, so you want to make sure that the developer is reputable and has a good track record. Doing your due diligence on a real estate developer is one of the most important steps when considering a pre-sale. If the developer has a long list of successful projects to their name, then you can be confident that they will deliver on their promises.
What is the quality of the construction?
It is also important to research the quality of the construction. You want to make sure that the developer is using high-quality materials and that the construction is up to code. There have been many cases of shoddy construction in pre-construction condos, so you want to make sure that you are getting a quality product.
What are the amenities?
Another important consideration is the amenities. Pre-construction condos usually come with a host of amenities, such as swimming pools, gyms, and concierge service. These amenities add value to the condo and make it more desirable to live in.
What is the maintenance fee?
You also want to consider the maintenance fee. Maintenance fees are the monthly fees that you pay to the condo corporation for the upkeep of the common areas. These fees can vary widely, so you want to make sure that you are getting a good deal.
What is the occupancy rate?
The occupancy rate is the percentage of units that are sold. This is important because you want to make sure that the building is not oversold. If the building is oversold, it can lead to problems down the road, such as special assessments and legal problems.
What are the bylaws?
Bylaws are the rules and regulations that govern a condo corporation. You want to make sure that you are comfortable with the bylaws before you invest in a pre-construction condo. The strata councils that make the rules are sometimes not well-liked by certain owners for a variety of reasons, including rules that are too restrictive or that raise the monthly maintenance fees.
What is the resale value?
You also want to consider the resale value. Pre-construction condos usually sell for a premium, so you want to make sure that the condo will appreciate in value. You need to ask yourself what you already know about the area in which the condo is being built and the likelihood that it will appreciate in value.
Are you prepared to wait?
Finally, you need to be prepared to wait. It can take a few years for a pre-construction condo to be built, so you need to be patient. This is not a short-term investment, so you need to be prepared to wait for the full value of the condo to be realised.
Are you getting a good deal?
The most important consideration is whether or not you are getting a good deal. Pre-construction condos are a great investment, but you want to make sure that you are getting a good deal. There are many factors to consider, such as the developer, the quality of construction, the amenities, and the maintenance fees. You want to make sure that you are getting a good deal on all of these factors.
Conclusion
The above are the most important considerations when thinking about investing in a pre-construction condo. If you do your due diligence and consider all of these factors, you will be on your way to making a wise investment.
How much is your brand worth? Donald Trump values his personal brand at more than $3billion.
Shweta Jhajharia of The London Coaching Group defines a business’s brand equity as comprising all the associations, emotions, and experiences that come to mind when a consumer is exposed to the brand: basically, what kind of bond is there between you and your customers? The stronger that bond is, the higher your brand equity. Here Jhajharia suggests four ways you can ensure your business is focused on the right sort of brand equity development.
While being knee-deep in international intrigue and political controversy aren’t problems most business leaders have to deal with, the fragility of brand equity is something that all entrepreneurs need to be aware of.
And what does strong brand equity get you? Someone camping on the tarmac overnight, sipping coffee from a thermos, although dreaming of a Bacardi and coke, while using a biro to write a reminder on a post-it note that the new hoover they’re queuing for is actually a Dyson.
But remember, brands becoming an integral part of the shoppers’ lexicon is an occasional side-effect of success, not the aim; James Dyson won’t care if you call his vacuum cleaners hoovers, but he’ll be quite pleased if every time you see a dustbag-free cleaner you think Dyson.
Your communications, your product performance, your customer service, even your brand name can strengthen or degrade your brand equity.
- Quality Products and Services
This is the backbone of your whole brand. It is vital that you’re able to deliver a quality product to your consumers if you want repeat purchases and good word of mouth.
Unfortunately, businesses in every industry make the mistake of releasing products for the sake of appearing to be innovative. Releasing a product that hasn’t been fully tested and doesn’t match the performance expectations of consumers (yes, I’m looking at you Windows Vista), can erode brand equity.
Insist that any product or service you bring to market delivers something new for your business’ portfolio; it shouldn’t be there just to pad out your catalogue.
- Competitive Analysis
A strong brand is a brand that can adapt to market shifts. To be such a brand, keep an eye on industry trends and your competitors’ activities; basically, don’t be Blockbuster.
An effective way for brands to build their brand equity is to target a niche: meet a specific need that no one else is currently satisfying. This radiates both innovative thinking and great understanding of your consumers, and being admired and respected is the hallmark of strong brand equity.
- Consistent Brand Image
When you understand the market and your place within it, you need to communicate that to consumers in a consistent and engaging manner.
Your products and your pricing are hugely important, but so too are other aspects of your business. From your brand name and straplines to your social media activity, every part of your business that comes into contact with customers and potential customers must be refined to ensure it is highly targeted. For some, a comparison website helped them decide between Sky and Virgin Media, but others will have had their choices influenced by Idris Elba’s manly charisma or by David Tennant’s kooky charm.
Establish your brand image from the start, and model your business accordingly. If you operate in the premium sector of your industry, be classy. If your product or service is about putting a smile of people’s faces, be fun: everyone wants their car to be well-made, but there’s a reason Vorsprung Durch Technik helped sell Audis not Minis.
Be congruent, and be consistent. Consumers know what they like, and they like what they know. Be in control of what they know.
- Listen to Customers
Brand equity resides in the minds of your customers. Listen to them.
Remember this?
Coca-Cola: Here’s New Coke.
Consumers: Meh!
Coca-Cola: Sorry about that. Anyone for Classic Coke?
Well done for listening and remedying that faux pas, but that could have been avoided by asking consumers of the world’s most popular soda if they actually wanted it to taste different.
Ensure that your consumers are given channels to give their feedback. This will help you understand strengths and weaknesses of your brand as well as the opportunities for growth (and changes to avoid).
Understanding brand equity, and how to develop it, is important, whatever stage your business is at. You must be able to create a positive image in your consumers’ minds if they are to become repeat customers, or become a part of your referral strategy. Achieve this, and your brand will strengthen and you’ll see real growth.
Oh, and try not to be impeached.
American household debt totalled a record $12.73 trillion as of March 2017, so cost of living concerns are more pertinent than ever.
Personal finance news and features website GOBankingRates conducted a study to identify which cities across America have seen the largest increase in cost of living expenses from 2016 to 2017. The study evaluated US cities based on two principal metrics:
- The increase in a city's cost of living index, which includes food, rent, utilities and transportation.
- The Increase in the amount of income required to "live comfortably," a concept used in GOBankingRates studies that combines the money needed to pay for necessities — including food, rent, utilities, transportation and healthcare — with the amount one should budget toward discretionary spending and savings.
GOBankingRates identified the cities where the cost of living index had increased by at least two points (out of a total 100) and the amount of income required to live comfortably had also risen. Combining these two metrics provides both the objective and more subjective side of cost of living expenses. Most cost of living indices do not account for the ability to save or pay for unnecessary purchases, and yet they're both important parts of people's financial lives.
- Jacksonville, Fla.
- Live Comfortably Amount Increase: $2,095
- Cost of Living Index Increase: 3.36 points
- Austin, Texas
- Live Comfortably Amount Increase: $1,407
- Cost of Living Index Increase: 3.84 points
- Louisville, Ky.
- Live Comfortably Amount Increase: $2,066
- Cost of Living Index Increase: 4.49 points
- Seattle
- Live Comfortably Amount Increase: $3,190
- Cost of Living Index Increase: 7.32 points
- Nashville, Tenn.
- Live Comfortably Amount Increase: $9,135
- Cost of Living Index Increase: 8.61 points
Additional Study Insights
- Home prices have been surging in Nashville. From April 2015 to April 2017, the median list price for a home rose by almost 30 percent, from under $260,000 to nearly $340,000.
- According to new income limits set by HUD, an individual earning $50,500 a year in Los Angeles County (#6 on the list) is now considered low-income.
- The cost of living has actually gone down in New York, San Francisco, and Honolulu — cities with notoriously high expenses.
(Source: GOBankingRates)
