Comments on: Financing An Investment Property http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/ Tue, 07 Sep 2010 03:55:33 +0000 http://wordpress.org/?v=2.2.1 By: realbench http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-4183 realbench Tue, 31 Aug 2010 18:44:28 +0000 http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-4183 <p>I personally like the <a href="http://www.realbench.net/capitalization_rate.php" title="capitalization rate" rel="nofollow">cap rate</a> return calculation because it allows me measure the earning ability of an real estate investment property. Your post gives an a different angle on how to employ it further.</p> <p>Good post</p> I personally like the <a href=”http://www.realbench.net/capitalization_rate.php” title=”capitalization rate” rel=”nofollow”>cap rate</a> return calculation because it allows me measure the earning ability of an real estate investment property. Your post gives an a different angle on how to employ it further.

Good post

]]> By: Rachel http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2919 Rachel Wed, 18 Nov 2009 10:04:38 +0000 http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2919 To invest in real estate successfully, proper planning is a must. Each property needs to be well researched and considered before purchased. There are several people who can help you plan, such as a listing agent, financial advisor, or even a lawyer. All it takes is to make that first property successful, and then you can build on that success and build up your portfolio. To invest in real estate successfully, proper planning is a must. Each property needs to be well researched and considered before purchased. There are several people who can help you plan, such as a listing agent, financial advisor, or even a lawyer. All it takes is to make that first property successful, and then you can build on that success and build up your portfolio.

]]> By: Gypsy http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2908 Gypsy Thu, 12 Nov 2009 12:59:37 +0000 http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2908 http://www.toronto.ca/taxes/property_tax/tax_rates.htm Multi-residential tax rate is 2.2893418 % compared to the residential rate of 0.8547807%. Rule of thumb of adding 1% - 1.5% to five year fixed mortgage rate does not even cover the property tax on a multi residential property. You have to add the utilities cost (heat, hydro, water), the cost repair and redecorate the units, Property management cost if you don�t have time to do it yourself. So I think that we need much more than a 10% cap rate get a profit out of a multi-residential property. http://www.toronto.ca/taxes/property_tax/tax_rates.htm

Multi-residential tax rate is 2.2893418 % compared to the residential rate of 0.8547807%. Rule of thumb of adding 1% - 1.5% to five year fixed mortgage rate does not even cover the property tax on a multi residential property.

You have to add the utilities cost (heat, hydro, water), the cost repair and redecorate the units, Property management cost if you don�t have time to do it yourself. So I think that we need much more than a 10% cap rate get a profit out of a multi-residential property.

]]> By: Gypsy http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2907 Gypsy Thu, 12 Nov 2009 04:40:41 +0000 http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2907 One of the best and informative post. Thank You. Could you please tell us the estimated property tax and maintenance expense (including gas and hydro) as a ratio of the asking price for these different properties. I am just wondering what would be the return net of property tax and maintenance. One of the best and informative post. Thank You. Could you please tell us the estimated property tax and maintenance expense (including gas and hydro) as a ratio of the asking price for these different properties. I am just wondering what would be the return net of property tax and maintenance.

]]> By: JD http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2906 JD Tue, 10 Nov 2009 16:56:52 +0000 http://www.torontorealtyblog.com/2009/11/10/financing-an-investment-property/#comment-2906 Rule of thumb: add 1% - 1.5% to the current five year fixed rate mortgage and that is the minimum standard for a cap rate. If current rates are at 4.35% then no properties with cap rates under 5.35% - 5.85% should be considered. Then there is the variable rate consideration which is another story. Rule of thumb: add 1% - 1.5% to the current five year fixed rate mortgage and that is the minimum standard for a cap rate. If current rates are at 4.35% then no properties with cap rates under 5.35% - 5.85% should be considered. Then there is the variable rate consideration which is another story.

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