-
One of the most used is Cash on Cash
"Cash on cash" refers to a metric used in real estate investing to evaluate the return on investment (ROI) generated by the cash invested in a property. It measures the annual pre-tax cash flow relative to the amount of cash invested in the property.
The formula for calculating cash on cash return is:
Cash on Cash Return=Annual Pre-Tax Cash FlowTotal Cash Invested×100%Cash on Cash Return=Total Cash InvestedAnnual Pre-Tax Cash Flow×100%
-
Rent to Value Ratio (RVR):
- Example: If a property is valued at $500,000 and has an annual rental income of...
Dianne Wilson's blog
03 May 2024
Key Calculations for Valuation
03 May 2024
Recreational Property Report 2024
Cottage owners choose to hold on to properties, despite interest rates and affordability concerns
Looking ahead, RE/MAX brokers and agents in Canada are anticipating an increase in recreational prices by 6.8 per cent. Meanwhile, the number of sales is expected to rise in the majority of regions analyzed (61.9 per cent), with increases ranging from three per cent upwards of 50 per cent this year.
A flood of listings hasn’t hit Canada’s recreational property market this spring, and is unlikely to transpire this year, according to findings from RE/MAX Canada’s 2024 Cottage Trends Report....
