CMHC Cap rate in Gatineau?
- Thread starter Joel
- Start date
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- Jun 5, 2009
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I have inquired CMHC about the same but for multifamily buildings and they did not provided much information in terms of cap rates. Your best option is to ask some appraisers in the area.
Click on Quebec Federation of Real Estate Boards provide some economic data and reports.
Click on Housing Market from CMHC Quebec for some reports
Click on Quebec Federation of Real Estate Boards provide some economic data and reports.
Click on Housing Market from CMHC Quebec for some reports
- Joined
- Aug 30, 2007
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- 13,881
It being a suburb of Ottawa I suspect it is 5% for quality assets in pristine conditions in good locations to 8.5% for dumps in bad areas. Use 6% to 6.5% as a rule of thumb, and increase/decrease for area quality, property conditions, vacancies etc.
"the" CAP rate does not exist anywhere. It is a guideline. You pay what a seller takes. If seller wants X and you are not willing to pay it then no deals happens. We just bought a 4.5% CAP rate asset in Edmonton because it had huge suites and immediate rental upside bringing it to a 6%+ asset with no money spent in 3 months. This is not doable in BC, ON or PQ due to rent control laws.
So, offer 6% CAP rate based on actual rents, expenses and vacancies and see where it goes.
"the" CAP rate does not exist anywhere. It is a guideline. You pay what a seller takes. If seller wants X and you are not willing to pay it then no deals happens. We just bought a 4.5% CAP rate asset in Edmonton because it had huge suites and immediate rental upside bringing it to a 6%+ asset with no money spent in 3 months. This is not doable in BC, ON or PQ due to rent control laws.
So, offer 6% CAP rate based on actual rents, expenses and vacancies and see where it goes.