Single Story For Sale in Downtown, Victoria

Photo Link
TOP FLOOR

•  1040 sqft , 1 bath , 1 half bath , 2 bdrm single story SALE PENDING CAD387,000 . ESTATE SALE
MLS® 853768

Accepted offer Subject only to Probate . We have others call today. TOP FLOOR FAIRFIELD 2 BED 2 BATH Condo. Excellent quiet location, southwest facing condo in move in condition. Wood flooring in the entrance and dining room and new carpets in living room and bedrooms, efficient galley kitchen. Naturally bright home with 2 skylights and a spacious enclosed balcony. Corner Heatilator fireplace in living room and lots of storage room. Generous master bedroom that will easily accommodate 2 twin beds or a king. Good sized second bedroom with a space saving Murphy bed. Easy walk to the popular Cook Street Village shopping, downtown Victoria and the Victoria Waterfront. The building includes a common laundry, secure bike storage, and meeting room. The condo includes a parking space. Pets allowed and no age restrictions. Quick Possession Possible. Be sure to See with my YouTube Video Open House Tour..https://youtu.be/OTyZmo7pg2M

Property information

The 2020 Victoria Real Estate Market Year in Review

The 2020 Victoria Real Estate Market Year in Review 

A total of 631 properties sold in the Victoria Real Estate Board region this December, 57 per cent more than the 402 properties sold in December 2019 and a 20.6 percent decrease from November 2020. Sales of condominiums were up 61.2 percent from December 2019 with 195 units sold. Sales of single family homes increased 58.6 percent from December 2019 with 314 sold.

A grand total of 8,497 properties sold over the course of 2020, 17.1 percent more than the 7,255 that sold in 2019. 2020 sales came in close to one thousand sales over the ten-year average of 7,329 properties.

“This has been an unexpected year on many levels,” says 2020 Victoria Real Estate Board President Sandi-Jo Ayers. “The onset of the COVID-19 pandemic in March and April quickly swept away any illusions that our normal seasonal market patterns would persist. Equally surprising was the resurgence of our market in early summer when restrictions lightened and pent-up demand began pushing sales beyond expectations. The combination of the ongoing pandemic, historically low interest rates and a shift in consumer priorities towards properties that cater to a more home-based work / life / retirement balance resulted in record setting sales for the last several months of 2020.”

There were 1,279 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of December 2020, a decrease of 29.5 per cent compared to the previous month of November and a 34.5 percent decrease from the 1,952 active listings for sale at the end of December 2019. This represents the lowest inventory of active listings at month-end in at least the last 25 years.

“The other side of our local story was the inventory,” adds Ayers. “We ended the year on a record low of properties available in Greater Victoria. This means that the huge demand we see for homes in our area is not being met by supply and prices are being pushed upwards as buyers vie for homes. Even historically lower-priced markets like the Highlands and the Westshore are seeing pressure as buyers adjust what suits their needs and focus on home ownership. What remains consistent is that in this complex market, your REALTOR® can help to navigate one of the biggest purchases most will make in their lifetime.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in December 2019 was $857,200. The benchmark value for the same home in December 2020 increased by 6.8 per cent to $915,100, slightly more than November’s value of $903,100. The MLS® HPI benchmark value for a condominium in the Victoria Core area in December 2019 was $520,100, while the benchmark value for the same condominium in December 2020 decreased by 0.9 per cent to $515,600, slightly less than the November value of $516,600.

Read the statistics package here.

PS: The 2021 BC Assessments are out Go Here to find your 2021 Assessment for Your current real estate assessed value (used for your Municipal Taxes later this year).

The 2020 Victoria Real Estate Market Year in Review 

HOW TO CALCULATE CAP RATE FOR RENTAL PROPERTIES|PART 2

HOW TO CALCULATE CAP RATE FOR RENTAL PROPERTIES|PART 2

CAP Rates-Part 2

Using CAP Rates Wisely

1

Use CAP rates to quickly compare similar Rental Property Investment opportunities. Calculate and Compare CAP Rates. 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 Rental Property investment opportunities of a similar nature. Cap rates allow quick, rough comparisons of the earning potential of Rental Property 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 Rental Properties 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]

2

Don’t use cap rate as the sole factor when determining an 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 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.
3

Use the cap rate to justify the income level of the investment property. 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 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 

HOW TO CALCULATE CAP RATE FOR RENTAL PROPERTIES|PART 2

 

E&O

HOW TO CALCULATE A CAP RATE FOR RENTAL PROPERTIES

HOW TO CALCULATE A CAP RATE FOR RENTAL PROPERTIES

CAP Rates

Real Estate Rental Property Investors rely upon a variety of types of information when negotiating for income producing properties – for instance, the desirability of the rental 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 rental 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


Call a local Apartment Realtor to find out your local Market CAP rate for rental properties in your area.

!. 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 rental property.

 

2.Subtract the operating expenses associated with the rental 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 rental property. 9,000 – 900 – 450 – 710 – 650 = $6,290, our property’s net income.

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 rental property 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 rental 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

HOW TO CALCULATE A CAP RATE FOR RENTAL PROPERTIES

USA THANKSGIVING|How Many Cooks Are Allowed In Your Kitchen?

US Thanksgiving is here. How many cooks are allowed in your kitchen? Do you work alone, are all hands on deck, or do you order in? #thehelpfulagent #house #houseexpert #home #thanksgiving #listreports #realestate #realestateagent #holidays #happythanksgivingUS Thanksgiving| How many cooks are allowed in your kitchen?

Find out What Fred Does Online, Google Search Fred Carver Victoria

VICTORIA|VIDEO OPEN HOUSE TOURS

 

In Today’s real estate market, showing homes can be sensitive with Buyers and Sellers alike.

Due to the risks of catching the very contagious Coronavirus, home Sellers are worried about strangers coming into their home.

For many years I have done a walk through video tour showing a Home or Condo without the need of being there. Home Buying Consumers love it, especially out of town home buyers..

Victoria Home Sellers today ask me to do a Video Open House Tour to send to possible home buyers of a Video Tour of their home.

I place the Virtual Open House Tour on our MLS and my online presence on Social Media, YouTube and my Websites and Blogs

Find Out What Your Home is Worth Today! GO HERE

New Garage Doors Nearly Pay For Themselves!

New garage doors nearly pay for themselves! Wondering which other upgrades retain the most value when you sell? Send me a message to find out more!. fred@fredcarver.com or text me 250-413-7042

#fredcarverremax #fredcarvervictoria #home #upgrade #houseexpert #realestate #homeimprovement #invest #homereno #realestateagent #themoreyouknow

New Garage Doors Nearly Pay For Themselves!

Video Tour of a Top Floor Two Bedroom Fairfield Condo

Join me while I take you on my Video Tour of a Top Floor Two Bed Two Bath Fairfield Condo.Google Earth View #402-1031 Burdett Ave Victoria, BC MLS # 853768

Excellent quiet location, Southwest facing condo in move in condition.

Vinyl Wood flooring in the entrance and dining room and new carpets in living room and bedrooms, efficient galley kitchen. Naturally bright home with 2 skylights and a spacious enclosed balcony. Corner Heatilator fireplace in living room and lots of storage room. Generous master bedroom that will easily accommodate 2 twin beds or a king. Good sized second bedroom with a space saving Murphy bed.

Easy walk to the popular Cook Street Village shopping, downtown Victoria and the Victoria Waterfront.

The building includes a common laundry, secure bike storage, and meeting room. The condo includes a parking space. One Cat or Dog allowed and no age restrictions. Recent New Roof and Thermo Windows.

Quick Possession Possible.