Investment Property in Kalmunai

Investment Real Estate in Kalmunai

Investment Property in Kalmunai
Investment Property in Kalmunai

Kalmunai property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Kalmunai.

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Search Map of Kalmunai Investment Real Estate

Kalmunai (Tamil: கல்முனை, romanized: Kalmuṉai; Sinhala: කල්මුනේ, romanized: Kalmunē) is the largest city of Ampara District. It is also the largest city of Eastern Province, Sri Lanka. It had a total population of 106,780 as of 2011. It is one of the few Muslim-majority municipalities in the country. When Muslims in Colombo were expelled by Portuguese in the 17th century, they fled to Kandy and sought refuge with King Rajasinha II, who resettled these refugees in Kalmunai (8,000 refugees) and Kattankudy (4,000). Kalmunai was the site of the royal farm, as a result of this settlement, it became a Muslim-majority area.

There were Sri Lankan Muslims, Sri Lankan Tamils, Sinhalese, and Burghers with the Moors forming a majority. It consists of four major regions namely Kalmunai city (Thalavatuvan Junction to Zahira College Road), Kalmunai North (Pandiruppu, Maruthamunai, and Neelavanai), Kalmunai South (Sainthamaruthu) and Kalmunai West (Natpittimunai, Chenaikudiruppu).

The devastating Sri Lankan civil war has adversely affected the area with number a forced disappearances, and civil unrest targeting the local civilians. The city was also severely impacted by the 2004 Tsunami, leading to many deaths and property destruction running into the millions of rupees.

The city is bounded on the east by the Indian Ocean on the north by the Periyaneelavanai village and on the south by Karaitivu village which is considered to be a suburb of the city.

Coordinates:7°25′N 81°49′E / 7.417°N 81.817°E / 7.417; 81.817

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The financial stability of Kalmunai has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Kalmunai

Renting out your Kalmunai buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Kalmunaiare – preparation is key.

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kalmunai and be prepared to change your initial outlook.
  • Thoroughly research the Kalmunai location with a special emphasis on fringe areas outside the main Kalmunai metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Kalmunai.
  • Ensure that your target investment property in Kalmunai appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
  • You may think that managing your Kalmunai properties yourself is an easy option, but are these savings justifiable when you run into Kalmunai red tape? Physis Realty Kalmunai office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kalmunai buy-to-rent sector.

With our expert guidance, investing in Kalmunai provides the secure knowledge that your money is working harder than it would in a local Kalmunai bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Kalmunai, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kalmunai property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kalmunai

Flipping property in Kalmunai

Flipping property is when we advise clients to buy a Kalmunai property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Kalmunai market has a time to react to the renovation.

The Flipping Strategy in Kalmunai

Investment property flipping in Kalmunai is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Kalmunai real estate investments are sometimes referred to by professionals as ‘distressed’ Kalmunai real estate.

What is distressed Kalmunai property:

  • Kalmunai property in need of renovation
  • Kalmunai real estate with a change of puropose and use
  • Oversold Kalmunai property
  • Bank repossessions in Kalmunai

Put simply, long term investors in Kalmunai purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Kalmunai investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Kalmunai property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Kalmunai use a minimum profit value of 22% when looking at potential Kalmunai projects. The reason for this is because there are lots that can go wrong in Kalmunai property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Kalmunai

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Kalmunai, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Kalmunai should be entrusted to only the highest-quality agency.

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