Commercial & Residential Properties in BC & Alberta

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Acquiring a property is an investment that pays off in the long term. Your capital gain increases as time goes by, so it is important to choose suitable properties so that the performance of the said property is greater in a few years. But what does this term refer to? Next, we must know everything about capital gains.

What is surplus-value?

It is the increase in the value of a real estate at the time of its second sale, that is, it is the amount that makes the difference between the price at which we buy it and the price at which we sell it. For its growth over time to be favorable, it is influenced by various factors such as the following:

Location

When buying a property, the location becomes essential. Is it close to road arteries? Is it easily accessible by public transport? Do you have shops around it, schools, hospitals? A property close to the construction of a subway station, for example, will increase its capital gain over time. Areas with economic and architectural development underway have a great chance of doubling in price when the property is sold.

Basic services that the property has

It is important to have a property that has electricity, water, gas, and telecommunications facilities, that are efficient, of quality, and that does not represent a constant problem. That it has, in the same way, growth possibilities within its own infrastructure, such as natural gas installation in those that do not have it or recycling dumps that can be installed in a comfortable area of ​​the property.

Property status

When the first purchase inspection of a property is made, its interior finishes, the state of doors and windows, the floor and ceiling, and the quality of the materials are observed. Likewise, outside the facade, the entrances, the garden, the elevators, the distribution of space, etc. are examined. If any of them are in poor condition or not well built, capital gains decrease. For this reason, an exhaustive analysis of the property must be made, both in the department and in the common areas. We must make sure that everything that is promised to us goes according to what we are seeing.

Property architecture

The design of the property has a lot of impact on its resale price, so it is important to consider the aesthetic aspect of the property: is it a striking building? Does it have conditions that favor the environment? Does it have enough access to natural light in all its areas? Observing all these factors in their entirety influences the decision to purchase a good, whose capital gain will be high in the future.

What to do to increase surplus value?

In addition to the above, there are some actions we can take, once we have acquired our property, to further increase future capital gains.

Keep the property in excellent condition. Schedule annual maintenance days that take into consideration walls, ceiling, floor, furniture, revision of electrical, water, and gas installations, and garden care.

Remodel with future sales in mind. If it is going to be remodeled, the impact of this action on the property must be taken into account. Although it is necessary to add a personal touch to the decoration of the house, it is also important that the aesthetics of the space be respected and that it does not affect the infrastructure of the building.

The capital gain of a property can increase if you pay attention to its internal and external characteristics from the first moment. It must be taken into account that, if we respect these factors, the property can give us significant returns not only in the sale but also in the rental of the property, being able to generate profitability of up to 9% per year.

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