Real Estate Investing 101: The Cap Rate HD

The capitalization rate is the return you would receive on an investment property if you paid cash for it. It’s meant as a way to compare an investment in real estate vs some other type of investment, like a stock. It’s calculated by dividing the net operating income (rent you receive minus expenses such as taxes, maintenance fees and repairs) by the purchase price of the unit. The cap rates for Vancouver properties tend to be lower than many other N. American cities. However, a city like Vancouver makes up for it with superior price appreciation (Capital Gains) over time. If you want to voice your opinion or get in touch with me, please email me at owen@owenbigland.com or comment/message me on my YouTube channel. Thanks for watching! Get my new book "Along for the Ride" available at Amazon: http://bit.ly/Bigland OWEN BIGLAND MACDONALD REALTY Direct Ph: 604.889.1118 http://owenbigland.com VANCOUVER BC HOMES & CONDOS GREATER VANCOUVER BC REAL ESTATE FOR SALE House | Townhouse | Apartments Condos | Real Estate Vancouver | Richmond BC