Question

All of the following are significant incentives for real estate rehabilitation except:

Question 4 options:

	1) tax credits.
	2) riskless investment.
	3) increased rental rates.
	4) enhanced property value.

Answer 1

The correct option for this question is Riskless Investment as each and every investment in the reak estate involves some amount of risks. It is not an incentive for Real Estate Rehabilitation.

Why other options are wrong?

• Tax Credits: Tax credits are given to the investors to renovate, reconstruct and restore the old buildings. It is one of the major incentives.
• Increased Rental Rates: Renovating the buildings increases the rental value of the buildings. Therefore it is considered as an incentive.
• Enhanced Property Value: Renovated buildings have enhanced resale value. Therefore it is considered as an incentive.