How Benko increased the value of his properties through rent increases - financial expert provides insight.
Benko was able to successfully “trick” the rents. The value at which a property appears on the balance sheet is not based solely on the price at which it was purchased, but is determined anew every year. In addition to the development of real estate prices, the rents paid in the respective property also serve as parameters for this. By increasing rents, Benko was able to significantly increase the value of the properties. So the Signa became more and more valuable, at least on paper – regardless of the acquisition of new objects. Just a few months ago, Signa estimated the value of its real estate assets at almost 21 billion euros. According to a report...

How Benko increased the value of his properties through rent increases - financial expert provides insight.
Benko was able to successfully “trick” the rents. The value at which a property appears on the balance sheet is not based solely on the price at which it was purchased, but is determined anew every year. In addition to the development of real estate prices, the rents paid in the respective property also serve as parameters for this. By increasing rents, Benko was able to significantly increase the value of the properties. So the Signa became more and more valuable, at least on paper – regardless of the acquisition of new objects. Just a few months ago, Signa estimated the value of its real estate assets at almost 21 billion euros.
According to a report by www.heute.at,
As an expert in the real estate market, it is important to analyze the impact of rent increases on the overall value of properties. The ability to increase the value of properties through rent increases can have a direct impact on the real estate market. In this case, Signa, a real estate company, was able to significantly increase the value of its real estate assets by increasing rents.
This approach could lead to other real estate companies also trying to increase the value of their properties through rent increases. This could lead to a shortage of affordable housing and put additional strain on tenants. At the same time, the overall value of the real estate market would increase, which could lead to a further shortage of affordable housing.
It is therefore important to monitor the impact of measures such as rent increases on the real estate market and, if necessary, take regulatory measures to ensure a balanced and stable real estate market.
Read the source article at www.heute.at