What is the capitalization rate


Problem 1: A house sells for $1159361 while the gross rent is $96916 per year, expenses for the house including rates are $14317 and the investor's personal costs such as the mortgage repayments are $6524 per year.  What is the capitalization rate?

Show your answer to two decimal places as a percentage e.g., 5.01% if that happened to be the correct answer.

Problem 2: You have a property that sells in total for $1097959 while the land value is $619212, other site improvements $36396 and the chattels are $30219. The mortgage payments for the owner are $3000 per month. If the floor area is 224.1/m2, what is the net rate?

Round your answer to the nearest dollar e.g., place in the box a number like 2156, if that happened to be the correct answer.

Problem 3: We learned about the unit meter frontage method for the valuation of single house sections. A vacant site sells for $640449 while the depth percentage is 106%, frontage 23.4 meters.  What are the street units?

Round your answer to the nearest dollar e.g., 25,345 if that happened to be the correct answer.

Request for Solution File

Ask an Expert for Answer!!
Other Management: What is the capitalization rate
Reference No:- TGS03261184

Expected delivery within 24 Hours