Jackson & Associates Ltd.

June 2010 Statistics Are Now Out!

danwilson — Mon, 19 Jul 2010 18:41:22 +0000

June 2010 Vancouver Island Real Estate Board statistics were released last week. For the 12 months ended June 30, 2010, single family sales volumes are up 44% over the same time period last year. June sales, however are down 18% (84 sales vs 102 sales last June). Average price levels remain virtually unchanged at $343,689 . Similar trends were observed in the Condo market – year to date sales are up, yet the June sales were down over June 2009 levels.

We’ve Moved

danwilson — Fri, 21 May 2010 04:43:07 +0000

Just a reminder, after 23 years in the same location, we moved on May 20, 2010 to our new digs at 917A Fitzgerald Avenue, Courtenay, BC V9N 2R6.

Phone, fax and email remain the same. Parking is available along Fitzgerald.

What is a Cap?

danwilson — Fri, 22 Jan 2010 22:34:47 +0000

The Capitalization Rate or Cap Rate is a ratio used to estimate the value of income producing properties. The cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage. Investors, lenders and appraisers use the cap rate to estimate the purchase price and market value for different types of income producing properties.

The lower the selling price or market value, the higher the cap rate and vice versa (the higher the selling price, the higher the cap rate. Cap rates are affected by many factors which go into the assessment of the risk of the property. This can include the location, age/condition of the building, strength of the tenancies, rental history, etc. An investor would likely expect a higher return when investing in higher risk income properties.

The past few transactions in the Comox Valley for investment properties (that is, sold fully occupied with tenants in place) have suggested overall capitalization rates in the range of 7 to 7.5% for purchases in the $400,000 to $1,000,000.00 range.