A triplex generates $3,600 of monthly gross rent with annual operating expenses of $15,000. Using a capitalization rate of 8%, what is the estimated property value using the income approach?
Correct Answer
B) $352,500
Net operating income = ($3,600 × 12) − $15,000 = $43,200 − $15,000 = $28,200. Value = NOI ÷ cap rate = $28,200 ÷ 0.08 = $352,500.
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A buyer who is not a first-time buyer purchases a $1,200,000 home in the City of Toronto. What is the total land transfer tax payable, provincial and municipal combined?
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An appraiser is using the cost approach to value a custom-built heritage home. The reproduction cost new is estimated at $850,000, the land value is $300,000, and total depreciation is calculated at $180,000. What is the property's estimated value using this approach?