Mathieu-Gast Home improvement Act

[Tim VandenToorn]

I thought I would share this with all the Michigan buy and hold investors.  

For those of you buying  and rehabbing distressed properties for long term holds, in West Michigan, Grand Rapids, Lansing, East Lansing, Detroit, the Lakeshore, Grand Valley, Heritage Hill (all key words) =) or anywhere else in the State of Michigan, I would encourage you to research the Mathiew-Gast Act. http://www.gladwinrealestateagent.com/mathieu-gast...  

Another officail resource:  https://www.michigan.gov/documents/taxes/Bulletin_...

The basic summary of this law prevents the assessor from increasing the value of your property for tax purposes based on home improvements.  This act in effect encourages investors who buy distressed properties, investing in the value of the neighborhood and community from being penalized by the increased taxes do to a higher assessed value. "Michigan's Mathieu-Gast Home improvement Act guarantees that the cost of normal repairs and maintenance on your home cannot be considered by an assessor in determining the true cash value of the property until the property is sold."

I have personally completed the paperwork (which takes about ten minutes) on several on the properties I own including my personal residents which has kept my assessed value from doubling, saving hundreds, if not thousands of dollars on an annual bases for my properties.  

Check it out, and happy investing!! If you need a recommendation on a property management company I can also give you a referral there!!  =)