- Joined
- Jul 5, 2008
- Messages
- 19
Recently a real estate agent told me that the appreciation on small multi-family (2-4plex) properties was limited to the local government rental increase guidelines - ~2% in ON.
Is this true? Is this what people are seeing? Or are these properties following the general appreciation rate within their area?
On one hand I could see this because rental revenue drives cap rates, borrowing capability, etc. but on the other hand if they were only appreciating by 2% (approximate rental increases available in ON at the moment) I would expect prices to be lower than they currently are.
Any feedback would be greatly appreciated.
Thanks
Brian
Is this true? Is this what people are seeing? Or are these properties following the general appreciation rate within their area?
On one hand I could see this because rental revenue drives cap rates, borrowing capability, etc. but on the other hand if they were only appreciating by 2% (approximate rental increases available in ON at the moment) I would expect prices to be lower than they currently are.
Any feedback would be greatly appreciated.
Thanks
Brian