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What could make your Coquitlam Property decrease in Value
The same events that cause a property to increase in value, can have a negative effect on your property in the Coquitlam area. A shift in value can be temporary so itís easy for an a mature investor to be mislead if they donít do their homework. Each factor that is mentioned can have meanings that push value both up and down.
When a neighborhood begins to decline, for whatever reason, the property within the area will fall in value. Realize that the decline occurs first, and then values fall. Over long periods of time, the area will undergo changes and investors will see potential in uplifting the neighborhood. Neighborhoods will always decline for many diverse reasons. One common and predictable reason is the lack of upkeep and maintenance on a property. When this happens, tenants move out, rents are reduced in an attempt to provide some income flow from the property and then the downward spiral effect happens. Low rent, slum tenants, low maintenance, lower property values. Novice real estate investors are warned to stay away from urban renewal projects. These projects are best left to the community itís self and larger corporations that can risk the loss.
Thereís a down side to to the benefits of an infrastructure change. A new hospital or new air port can bring in all sorts of changes that will make some property go up and others to decline. New roadways, especially superhighways, may require new rights of ways that have the end result of cutting neighborhoods in half. What once was a nice area is now turned into two undesirable areas. Increased traffic, noise, and pollution are just some of the negative side effects of almost any infrastructure change youíll see in your area.
Every municipality has a tendency to expand and become more complex. Complexity usually means an increased cost to build or maintain real estate. Building permits and other city requirements may become so expensive that it isnít economically feasible to build projects anymore. In some smaller constructions jobs it isnít uncommon for the cost of meeting all the rules and regulations set by the government to be more expensive then the actual construction itself. Be ware that when this occurs, the value of the pre-developed property could decline no matter what improvements your investing in.
Is there a decrease in rent? This is where poor management is one of the biggest factors resulting in decreased rent that you can acquire. A good property manager recognizes what must be done to keep the revenue ahead of spending. A good manager will also recognize when things much change or what it is time to get out of the current investment. At any rate accept the fact that real estate follows trends and most of all they dramatically affect the infrastructure of your investment. Keep your eye no on the ball but on the ball of your governmentís ball point pen, passing zoning and other laws that effect your investment!
About the Author: Our rental network helps to find quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit the website RentCoquitlam.com for more information on Fraser Valley Homes and Apartments for Sale or Rent.