An office building in Toronto is sold for $2,500,000. What is the total of Ontario Land Transfer Tax and Toronto Municipal Land Transfer Tax payable on the purchase?
Correct Answer
D) $92,950
Ontario LTT under s. 2(1) of the Land Transfer Tax Act is 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000 and 2% above: $275 + $1,950 + $2,250 + $42,000 = $46,475. Toronto's MLTT for properties other than land with one or two single-family residences uses the same brackets, another $46,475, for a total of $92,950. The extra residential tiers above $2,000,000 do not apply to an office building.
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An office building has 50,000 square feet of rentable space with current rents averaging $25 per square foot annually. The building operates at 85% occupancy with annual operating expenses of $400,000. What is the property's NOI?
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An office building is leased on triple net terms with annual base rent of $500,000. Operating expenses of $150,000 a year are all paid by the tenants. The owner bought it for $4,200,000 with 75% financing at 5.5% interest. What is the property's net operating income?