Land for Townhouses is For Sale in Brentwood Bay, Victoria

Land for Townhouses

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Ready Build 6 Townhouses Site -Building Permit Issued

•  single story – FOR SALE  CAD1,400,000 . Ready to Go Townhouse Land
MLS® 430225

Start Your Engines…Here is an opportunity to Start Building 6 Townhouses for Resale. Be ready for the busy Spring market. The Building Permit has been issued. Prime Location in BrentWood Bay with Shopping just 1/2 block away, very popular neighborhood of Victoria, BC in Central Saanich. All documents in a DropBox folder Copy and Paste to View Docs https://www.dropbox.com/sh/xtbxk5x45fifmaq/AABZRCLPNCP1AfW3G8o0HMKGa?dl=0
Call if you have any questions.

Property information

Development Opportunity in Sidney by the Sea

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Located in Downtown Sidney by the Sea

•  14794 sqft single story – FOR SALE  CAD5,600,000 . DEVELOPMENT OPPORTUNITY
MLS® 424014

BC Assessment says the Value of this property is mostly in the land for redevelopment with recent sales in Sidney at $120 sq.ft .Location Location Location. Plan your development while enjoy a 5% return from the Retail Strip Mall . Located in the heart of our retirement community ” Sidney by The Sea”.C1 Zoning, latent development potential.Easy care investment, all tenants have triple net leases with option to renew leases. Large 1 acre plus Lot with 236 ft road frontage, Located behind Save on Foods grocery. Offers Excellent Development opportunity.Great long term tenants.Easy off street parking for consumers for stop and go retail shopping and street parking. Prime downtown location For Sale by the Original Owner.Showing Approx. 5.1 CAP. 20 Minutes to downtown Victoria, 5 minutes to the Victoria International Airport and 10 minutes to BC Ferries to the Vancouver mainland. Popular Waterfront community.

Property information

Single Story For Sale in Sidney, Sidney

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Located in Downtown Sidney by the Sea

•  14794 sqft single story FOR SALE  CAD5,600,000 . Strip Mall Investment Opportunity
MLS® 424014

Location Location. Retail Strip Mall Located in the heart of our retirement community ” Sidney by The Sea”.C1 Zoning, latent development potential.Easy care investment, all tenants have triple net leases with option to renew leases. Large 1 acre plus Lot with 236 ft road frontage, Located behind Save on Foods grocery. Offers excellent future Development opportunity.Great long term tenants.Easy off street parking for consumers for stop and go retail shopping and street parking. Prime downtown location For Sale by the Original Owner.20 Minutes to downtown Victoria, 5 minutes to the Victoria International Airport and 10 minutes to BC Ferries to the Vancouver mainland. Popular Waterfront community.

Property information

Strip Mall For Sale in Sidney, BC

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Located in Downtown Sidney by the Sea

•  14794 sqft single story – FOR SALE  CAD5,600,000 . Strip Mall Investment Opportunity
MLS® 424014

Location Location. Retail Strip Mall Located in the heart of our retirement community ” Sidney by The Sea”.C1 Zoning, latent development potential.Easy care investment, all tenants have triple net leases with option to renew leases. Large 1 acre plus Lot with 236 ft road frontage, Located behind Save on Foods grocery. Offers excellent future Development opportunity.Great long term tenants.Easy off street parking for consumers for stop and go retail shopping and street parking. Prime downtown location For Sale by the Original Owner.20 Minutes to downtown Victoria, 5 minutes to the Victoria International Airport and 10 minutes to BC Ferries to the Vancouver mainland. Popular Waterfront community.

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Learn How to Become Rich Buying Older Apartment Buildings

 Learn How to Become Rich Buying Older Apartment Properties 

Step One: A Golden Rule Learn how become rich buying Apartment buildings |At Your Price and Terms; 

Every step you take buying Older apartment buildings will play its role in determining how fast you get rich, and how much wealth you acquire; but negotiating your purchase at the right price and terms.

A “Golden Rule”  that will make you Rich!

  • The fact you see the potential for making the property’s value Jump is your ace in the hole, not the seller’s Don’t give it away is your ace in the hole by offering a price higher that Current Value. Note: Research the local government rules and regulations for rental properties.
  • As a buyer , you should also take advantage of you position as a man( person) with money to spend- money that sellers want to get their hands on.” If you’ve got the Gold, you can make the rules” This is the Golden Rules, keep yourself firmly in control of the negotiating process.
  • First a step to getting rich buying older Apartment Buildings is “doing your homework”
  • Two steps will pave your way for success as a negotiator with the seller and his agent. 
  1. “Math Homework”: Setting your limits beforehand; and
  2. “Psychological Homework”; Improving your position by knowing the Apartment property and the seller  inside and out !

Learn How to Become Rich Buying Older Apartment Buildings|At Your Price and Terms- Step One

Apartment Investors| Not All Multifamily Rental Buildings Are the Same.

Apartment Investors| Not All Multifamily Rental Buildings Are the Same.

Multifamily Apartment rental properties are not all the same. By that I mean,they often have different suite mixes i.e, One bedroom suites, Bachelor suites and Two and Three bedroom suites and often all of these types of suites are in an Apartment  building. I have found a mixed suite mix the most popular with Investors as opposed to a building with all one or two bedrooms or bachelor suites.

And a lot of these buildings are heated differently, and some  owners include the heating costs otherwise the tenant pays for their own heating inside their suite. Common areas such as hallways are heating costs borne by the Apartment Investor owner.

Apartment Investors you’ll find most new Multifamily Apartments now have electric baseboard heating or heat pumps( with a Heating and Cooling feature), for heating the building and each individual tenant suite. With these type suites the tenants pay their electrical heating cost.

These electrically heated suites will have separate electric meters so the hydro consumption is measured by BC Hydro in British Columbia and the Hydro use is billed separately to each tenant in the apartment complex.

Many of the Older Apartment have a central hot water system and the common area  heating cost is paid by the building owner. Usually these type of Building use Furnace oil or Natural Gas for heating the domestic and hot water for heating the entire building.

Depending on a local Rental Market, Landlords may sometimes pay a tenants heating cost to attack or keep tenants.

Apartment Investors as you can see, not all Multifamily Apartment Complexes are the same.

Most Apartment  Investors and Owners talk about Multifamily Apartment Values, when considering buying or Selling a Multifamily apartment. They will often refer to the local CAP rate (return on investment after operating expenses) and or some also count a asking price based on Suite per suite price i.e. $200,000 per suite or rent per square foot i.e. $2.50 sq.ft. and often all of these. This information will be available from a local experienced Apartment Realtor.

Apartment Investors| Not All Multifamily Rental Buildings Are the Same.

New Style Apartment

Part 2-Calculating CAP Rate For VICTORIA BC Apartment Investment

PART 2-CALCULATING CAP RATE FOR VICTORIA BC APARTMENT INVESTMENT

SEE– Part 1- CALCULATING CAP RATE FOR APARTMENT BC INVESTMENT

New Style Apartment

Using Cap Rates In Victoria Wisely
Image titled Figure Cap Rate Step 4

1 Calculating CAP rates to quickly compare similar Victoria Apartment investment opportunities. The cap rate basically represents the estimated percent return an investor might make on an all-cash purchase of the property. Because of this, cap rate is a good statistic to use when comparing a potential acquisition to other investment opportunities of a similar nature. Cap rates allow quick, rough comparisons of the earning potential of investment properties and can help you narrow down your list of choices.[6]

  • For example, let’s say that we’re considering buying two pieces of property in the same neighborhood. One has a cap rate of 8%, while the other has a cap rate of 13%. This initial comparison favors the second property. It has a higher cap rate, so it is expected to generate more money for each dollar you spend on it.[7]

Image titled Figure Cap Rate Step 5

Don’t use CAP rate as the sole factor when determining an Victoria investment’s health. While cap rates offer the opportunity to make quick, easy comparisons between two or more pieces of property, they’re far from the only factors you should consider. Real estate investment can be quite tricky – seemingly straightforward investments can be subject to market forces and unforeseen events beyond the scope of a simple cap rate calculation. At the very least, you’ll also want to consider the growth potential of your property’s income as well as any likely changes in the value of the property itself.[8]

For example, let’s say that you buy a piece of property in Victoria for $1,000,000 and you expect to make $100,000 per year from it – this gives you a cap rate of 10%. If the local housing market changes and the value of the property increases to $1,500,000 suddenly, then you may have less-lucrative cap rate of 6.66%. In this case, it may be wise to sell the property and use the profits to make another investment. However, it is also possible that the income levels may have increased, or the expense levels may have decreased. Make sure to look into all of the factors involved when determining the cap rate.

Image titled Figure Cap Rate Step 6

Use the CAP rate to justify the income level of the investment property In Greater Victoria. If you know the cap rate of properties in the area of your investment property, you can use this information to determine how much net income your property will need to generate for the investment to be “worth it”. To do this, simply multiply the property’s asking price by the cap rate of similar properties in the area to find your “recommended” net income level. Note that this is essentially solving the equation (Net income/Asking price) = cap rate for “net income”.

  • For example, if we bought a property for $400,000 in an area where most similar Victoria BC properties have about an 8% cap rate, we might find our “recommended” income level by multiplying 400,000 × .08 = $32,000. This represents the amount of net income the property would need to generate per year to get an 8% cap rate. However, keep in mind that you cannot set rental rates based on the cap rate. They must be based on market rates and consider how this rental would compare to other rentals in the area.
  • Source Carla Toebe 

SEE- PART 1- CALCULATING CAP RATE FOR APARTMENT INVESTMENT.

PART 2-CALCULATING CAP RATE FOR VICTORIA APARTMENT INVESTMENT.

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Part 1-How To Calculate CAP Rate For Victoria Apartment Investment

Part 1- How To Calculate CAP Rate for Victoria BC Apartment Investment

SONY DSC

Real estate investors rely upon a variety of types of information when negotiating for income producing properties – for instance, the desirability of the property’s current location and/or any prospective changes in the neighborhood are two common factors. One crucial piece of information that helps investors make their decision is called the capitalization rate (or “cap rate”). The cap rate (expressed as the ratio of the property’s net income to its purchase price) allows investors to compare properties by evaluating a rate of return on the investment made in the property.[1][2] If you are considering an investment property, then you may want to calculate the cap rate first and then use it to help you make your decision.

Image titled Figure Cap Rate Step 1

Call a local Apartment Realtor to find out your local Market CAP rate

!. Calculate the yearly gross income of the investment property. The gross income of a piece of investment property will mainly be in terms of rent rolls. In other words, when a real estate investor buys a home, s/he usually makes money from it primarily by renting it out to tenants.[3] However, this isn’t the sole possible source of income – miscellaneous income can also accrue from the property in the form of coin operated vending or washing machines, parking, etc.

For example, let’s say that we’ve just purchased a house we intend to rent to tenants at a rate of $750/month. At this rate, we can expect to make 750 × 12 = $9,000 per year in gross income from the property.

Image titled Figure Cap Rate Step 2Image titled Figure Cap Rate Step 2

2. Subtract the operating expenses associated with the property from the gross income. Any piece of real estate comes with operating costs. Usually, these are in the form of maintenance, insurance, taxes, utilities, vacancy costs, and property management.[4] Use accurate estimates for these numbers and subtract them from the gross income you found above. This will find the property’s net income. For example, let’s say that, after having our rental property appraised, we find that we can expect to pay $900 in property management, $450 in maintenance, $710 in taxes, and $650 in insurance per year for our property. 9,000 – 900 – 450 – 710 – 650 = $6,290, our property’s net income.

Image titled Figure Cap Rate Step 3

Note that the cap rate doesn’t account for the property’s business expenses – including the purchase costs of the property, mortgage payments, fees, etc. Since these items reflect the investor’s standing with the lender and are variable in nature, they adversely affect the neutral comparison that the cap rate is meant to deliver.

3.Divide the net income by the property’s purchase price. The cap rate is the ratio between the net income of the property and its original price or capital cost. Cap rate is expressed as a percentage.[5]

Let’s assume we purchased our property for $40,000. Given this information, we now have everything we need to know to find our cap rate. See below:

  • $9000 (gross income)
  • -$900 (property management)
  • -$450 (maintenance)
  • -$710 (taxes)
  • -$650 (insurance)
  • =$6290 (net income) / $40000 (purchase price) = 0.157 = 15.7% cap rate

PART 1-HOW TO CALCULATE CAP RATE FOR APARTMENT INVESTMENT

See PART 2– CALCULATING CAP RATE FOR VICTORIA BC APARTMENT INVESTMENT

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APARTMENT INVESTMENTS VICTORIA, BC

Apartments Investments Victoria BC 

The most common and best understood form of apartment investment for income property is the apartment house.

The apartment house can run from the frame two family house up to the 500 unit apartment complex.

Newer apartment houses are generally wood frame or concrete construction and range from the suburban “ garden type”  apartment house to ultra high -rise apartment building.

See my Income Properties versus Real Estate Investment post.

Older apartment houses of brick (wood frame on the west coast ) construction are usually located in urban areas (although there are a few in older suburban areas). They are generally referred to as elevatored buildings or “walk-ups” (without elevators).

Victoria Apartment Investments

Smaller apartment houses of frame construction are scattered throughout both urban and suburban areas. These generally considered less desirable than concrete and brick apartment house investments, but they may be just right for certain types of investors who want “higher cash flow” or a shorter life span for tax “write off.”

Many larger older homes have been converted into apartment houses. If well located, these can make excellent investments.

With today’s low mortgage interest rates, apartment investors are paying high prices for apartment properties in Victoria and across Canada. Great opportunity for both Apartment owners to sell their income properties and Apartment investors buying Apartment investments with today’s low mortgage interest rates.

Real Estate Investment Trusts are seeking out Apartment investments across Canada for their shareholders. Victoria is a much sought after location for these Buyers in today’s investment market place.

Are you planning on selling one or a portfolio for Apartment properties? Call me 250-413-7042 or email me at fred@fredcarver.com to arrange a time to discuss selling your Apartment Investments. I am currently working with several Canadian Real Estate Investment Trusts wanting to purchase one or several VICTORIA apartment income properties.

CAP rates are low right now, so let’s get together.

 

Apartments Investment In Victoria BC