Is anyone familiar with this program. The government is giving a rebate of upto 40% of the cost of making your multi-family buildings more energy effiecient. www.meerontario.ca I talked with them and they are non-profit and will help you with the process of getting government money for improvements on your buildings. Has anyone done this yet? It seems you have to have the work done by Dec. 31st 2010.
Rebate Program for Multifamily Building Owners
- Thread starter PHD
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QUOTE (PHD @ Sep 1 2010, 12:09 PM) Is anyone familiar with this program. The government is giving a rebate of upto 40% of the cost of making your multi-family buildings more energy effiecient. www.meerontario.ca I talked with them and they are non-profit and will help you with the process of getting government money for improvements on your buildings. Has anyone done this yet? It seems you have to have the work done by Dec. 31st 2010.
It usually does NOT make sense .. so use this rebates ONLY if you plan to do the work anyway !
It usually makes more sense to invest those $s in-suite upgrades or curb appeal as you can get higher rents ! If the building is more energy efficient you save a few $s, it is good to go "green" but at the end of the day it is NOT a great investment .. and that is why the government (of cash rich, who cares-about-the-tax-bill-later-it is-not-my-money-anyway) of Ontario is subsidizing it !
The value of your investment is a multiple of the NOI .. and using the rule of 150 (or an 8% CAP rate) of every $ NOI increase here is the math:
spend $10,000 to improve 2 suites. get NOI up $80/month per suite. Value increase of property: 2 * 80 * 150 = $24,000
spend $16,000 to improve windows, get a 40% deduction for a net investment of $10,000 and get maybe a $20 increase in rent in 6 suites .. $2600/suite for new windows + new patio door (as the suite is still ugly, but now has new windows) .. value increase: 6 * 20 * 150 = $18,000
So, does it make sense: yes, BUT ONLY if you have to change windows (or whatever energy efficiency you are doing) ANYWAY !!
It usually does NOT make sense .. so use this rebates ONLY if you plan to do the work anyway !
It usually makes more sense to invest those $s in-suite upgrades or curb appeal as you can get higher rents ! If the building is more energy efficient you save a few $s, it is good to go "green" but at the end of the day it is NOT a great investment .. and that is why the government (of cash rich, who cares-about-the-tax-bill-later-it is-not-my-money-anyway) of Ontario is subsidizing it !
The value of your investment is a multiple of the NOI .. and using the rule of 150 (or an 8% CAP rate) of every $ NOI increase here is the math:
spend $10,000 to improve 2 suites. get NOI up $80/month per suite. Value increase of property: 2 * 80 * 150 = $24,000
spend $16,000 to improve windows, get a 40% deduction for a net investment of $10,000 and get maybe a $20 increase in rent in 6 suites .. $2600/suite for new windows + new patio door (as the suite is still ugly, but now has new windows) .. value increase: 6 * 20 * 150 = $18,000
So, does it make sense: yes, BUT ONLY if you have to change windows (or whatever energy efficiency you are doing) ANYWAY !!
Thanks for the advice Thomas. I am planning to do the work anyway it is the windows that are original (about 40 years old). Your information does make sense but these units include the utilities and this should reduce the bills quite a bit as well as get some new tenants (it seems to be the major complaint)
I was at the multi-family boot camp this past weekend and was quite impressed with the presenters and the information that was made avaliable. I am already looking for another building outside of the Windsor area. Alot of bargains here but a high vacancy rate and I think it will be along time before we see any increase in property values.
Thanks again,
Pat Horwood
QUOTE (ThomasBeyer @ Sep 1 2010, 03:50 PM) It usually does NOT make sense .. so use this rebates ONLY if you plan to do the work anyway !
It usually makes more sense to invest those $s in-suite upgrades or curb appeal as you can get higher rents ! If the building is more energy efficient you save a few $s, it is good to go "green" but at the end of the day it is NOT a great investment .. and that is why the government (of cash rich, who cares-about-the-tax-bill-later-it is-not-my-money-anyway) of Ontario is subsidizing it !
The value of your investment is a multiple of the NOI .. and using the rule of 150 (or an 8% CAP rate) of every $ NOI increase here is the math:
spend $10,000 to improve 2 suites. get NOI up $80/month per suite. Value increase of property: 2 * 80 * 150 = $24,000
spend $16,000 to improve windows, get a 40% deduction for a net investment of $10,000 and get maybe a $20 increase in rent in 6 suites .. $2600/suite for new windows + new patio door (as the suite is still ugly, but now has new windows) .. value increase: 6 * 20 * 150 = $18,000
So, does it make sense: yes, BUT ONLY if you have to change windows (or whatever energy efficiency you are doing) ANYWAY !!
I was at the multi-family boot camp this past weekend and was quite impressed with the presenters and the information that was made avaliable. I am already looking for another building outside of the Windsor area. Alot of bargains here but a high vacancy rate and I think it will be along time before we see any increase in property values.
Thanks again,
Pat Horwood
QUOTE (ThomasBeyer @ Sep 1 2010, 03:50 PM) It usually does NOT make sense .. so use this rebates ONLY if you plan to do the work anyway !
It usually makes more sense to invest those $s in-suite upgrades or curb appeal as you can get higher rents ! If the building is more energy efficient you save a few $s, it is good to go "green" but at the end of the day it is NOT a great investment .. and that is why the government (of cash rich, who cares-about-the-tax-bill-later-it is-not-my-money-anyway) of Ontario is subsidizing it !
The value of your investment is a multiple of the NOI .. and using the rule of 150 (or an 8% CAP rate) of every $ NOI increase here is the math:
spend $10,000 to improve 2 suites. get NOI up $80/month per suite. Value increase of property: 2 * 80 * 150 = $24,000
spend $16,000 to improve windows, get a 40% deduction for a net investment of $10,000 and get maybe a $20 increase in rent in 6 suites .. $2600/suite for new windows + new patio door (as the suite is still ugly, but now has new windows) .. value increase: 6 * 20 * 150 = $18,000
So, does it make sense: yes, BUT ONLY if you have to change windows (or whatever energy efficiency you are doing) ANYWAY !!