Investment Property in Kathmandu

Investment Real Estate in Kathmandu

Investment Property in Kathmandu
Investment Property in Kathmandu

Kathmandu 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 Kathmandu.

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Search Map of Kathmandu Investment Real Estate

Kathmandu (; Nepali: काठमाडौँ, Nepali pronunciation: [ˈkaʈʰmaɳɖu]) is the capital and largest city of Nepal, with a population of around 1 million. Also known as the city of temples, the city stands at an elevation of approximately 1,400 metres (4,600 feet) above sea level in the bowl-shaped Kathmandu Valley in central Nepal. The valley was historically called the “Nepal Mandala” and has been the home of the Newar people, a cosmopolitan urban civilization in the Himalayan foothills. The city was the royal capital of the Kingdom of Nepal and hosts palaces, mansions and gardens of the Nepalese aristocracy. It has been home to the headquarters of the South Asian Association for Regional Cooperation (SAARC) since 1985. Today, it is the seat of government of the Nepalese republic, established in 2008, and is part of the Bagmati Province.

Kathmandu is and has been for many years the centre of Nepal’s history, art, culture, and economy. It has a multi-ethnic population within a Hindu and Buddhist majority. Religious and cultural festivities form a major part of the lives of people residing in Kathmandu. Tourism is an important part of the economy in the city. In 2013, Kathmandu was ranked third among the top ten upcoming travel destinations in the world by TripAdvisor, and ranked first in Asia. The city is considered the gateway to the Nepalese Himalayas and is home to several World Heritage Sites: the Durbar Square, Swayambhunath, Boudhanath and Pashupatinath. Kathmandu valley is growing at 4 percentange per year according to the World Bank in 2010, making it one of the fastest-growing metropolitan areas in South Asia, and the first region in Nepal to face the unprecedented challenges of rapid urbanization and modernization at a metropolitan scale.

Historic areas of Kathmandu were severely damaged by a 7.8 magnitude earthquake in April 2015. Some of the buildings have been restored while some remain in the process of reconstruction.

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The financial stability of Kathmandu 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 Kathmandu

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

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

  • Set goals based on how much rental yield will be required and the local rental yield rates in Kathmandu and be prepared to change your initial outlook.
  • Thoroughly research the Kathmandu location with a special emphasis on fringe areas outside the main Kathmandu metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Kathmandu.
  • Ensure that your target investment property in Kathmandu 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 Kathmandu properties yourself is an easy option, but are these savings justifiable when you run into Kathmandu red tape? Physis Realty Kathmandu office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Kathmandu buy-to-rent sector.

With our expert guidance, investing in Kathmandu provides the secure knowledge that your money is working harder than it would in a local Kathmandu 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 Kathmandu, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Kathmandu property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Kathmandu

Flipping property in Kathmandu

Flipping property is when we advise clients to buy a Kathmandu 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 Kathmandu market has a time to react to the renovation.

The Flipping Strategy in Kathmandu

Investment property flipping in Kathmandu 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 Kathmandu real estate investments are sometimes referred to by professionals as ‘distressed’ Kathmandu real estate.

What is distressed Kathmandu property:

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

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

Calculate profit that you make from Kathmandu investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Kathmandu

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 Kathmandu, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Kathmandu should be entrusted to only the highest-quality agency.

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