Basic Condo Investment’s KPIs Explanation
Capitalization Rate
(Cap Rate), % per year
The Cap Rate shows relationship between the purchase price and net operational rental income.
Cap Rate = Net Annual Average Rental Income / Purchase Price
The Cap Rate varies by neighbourhood, by condo building, city and market.
US market shows that an ideal value is greater than 6%. But for Toronto – 5.0% is the maximum and 3.1 % average Cap Rate because of very high condo maintenance fees.
Net Annual Income is the total income (rent) for the year, factoring in the expenses. In our calculation it doesn’t account for mortgage.
Data is updating once a quarter.
Average Number of Days on Market before sold
(Av DOM), days
Av DOM shows how fast condo a condo might be sold.
Average number of day to sell a condo in a particular condo building, based on the last 12 months data.
Data is updating once a quarter.
Average Annual Property Market Value Growth
(Av MVG), % per year
The Av MVG shows how condo market price growth changed during last 9 years/or since registration.
Av MVG = Total Market Price Change / Quantity of Years Analyzed
The Av MVG varies by neighbourhood, by condo building, city and market.
Data is updating once a quarter.