Do you Know Forced Appreciation
Forced Appreciation, How to increase the value of you property at not cost to you? It requires knowledge, coaching and resources.
Learning from Canadian real estate experts with proven success.
Forced appreciation is the increase in the value of
real estate through actions taken by the current real estate investor.
You can use forgivable real estate grants to improve
the property. Adding up second suites at the expense
of local government is one of the best kept secret.
Forgivable Real Estate Grants
Garden suites in Canada are almost fully available with
forgivable real estate grants.There are several other
incentives available from time to time.
Forced increases occurs by the real estate investor actions either
increasing the income of the property or decreasing expenses.
Either one of these will increase the net operating income
of the property and force the value to increase.
Property Management
To force increases in value, it is important to have
the right property manager and to pick assets with
inefficiencies you can fix and in a market that supports it.
Forced appreciation can occur by adding amenities,
doing capital improvements, or raising rents over time.
If you improve the property just a little bit each year,
allowing you to increase rents and in turn increase your NOI,
your value will increase over time. Small changes can make a
big difference in income producing properties. In income producing
real estate, increasing the income or decreasing expenses by $1
can increase the value by $10 to $14. These small changes
can really add up! The better you operate the property,
the more money you will earn while you own it and the more
it will be worth when you sell it. That is why choosing the
right property and the right property management is so important.
Increase the Rental Revenue
Remember, with income producing properties, every dollar you
increase the revenue or decrease expenses has a multiplying effect.
Raising rents by $10 per month per apartment can increase the value of the investment real estate by $1,200 to $1,700 per apartment per year.
If you did this each year for 5 years on a 50 unit apartment complex,
you would increase the value $300,000 to $400,000. Over time,
those small increases can really add up.
Appreciation is one of the biggest and most exciting ways to
create wealth in real estate. You don’t have to be a speculator
to take advantage of it. It can occur by the overall market increasing
or through the actions of the real estate investor, called forced appreciation. Choosing the right property, property management, and making small improvements over time can have exponential results. Appreciation is the number one way that millionaire real estate investors are made.
