THIS WEEK’S FACTS BY EMAIL: QUESTIONS, QUESTIONS STOCK MARKET EFFECT ON REAL ESTATE MEXICO INVESTMENT REVISITED BUYING WITHOUT SUBJECTS BUT STILL MUST SELL HOUSE? RBC SAYS: NO HOUSING REVERSAL … EVEN ALTA WILL LOOK GOOD IN 2016 GIFT YOUR DOWN PAYMENT HOT PROPERTIES BEST RATES
1. Vancouver, 5 suites in 2 houses on a double (6400 square foot) lot in the Mount Pleasant part of East Vancouver. We have owned the property for 10 years and have steadily increased the rents. They currently gross $89,000 per year and we are looking at raising rents for 3 of the 5 suites on September 1st.
The cap rate is 4%. Price $1,688,000.
2. Chilliwack, 2 bedroom townhouse in Chilliwack $179,900. Rent is $1,200 – leaving a positive monthly cash flow of $285.
Investors are always searching for profit or yield, but how do you know what actual cash flow there comes out of a given property? Well, Real Estate investors – small and large – use what they call a cap rate to find the true net income. But to find that elusive rate is one of most difficult and perplexing problems for realtors and investors. Market comparables are often hard to find and the income and expense statements often only a wild dream by the owner.
Comparables for an older apartment building may also be harder to come by – not as easy as […]
Germany never saw a collapse like Southern Europe, Spain, Portugal and the like. Prices stayed the same. Never declined. But now real estate is really on the way UP in all major cities.
We said 3 years ago in our annual forecast that we felt Berlin and most other German cities were undervalued. Since then prices have risen to such an extent (and with it rents) that it is making headlines and TV shows in Germany.
Rents are actually a lot higher and are up:
– Munich are up 29 %
– Frankfurt 23% and
– Cologne up 25% in a year
So are prices, Germany real estate deals: