mls.ca updating to REALTOR.ca

May 21, 2008 · Filed Under Real Estate Articles · 4 Comments 

On May 28th, 2008, MLS.ca will be introducing some new features to the web site on behalf of REALTORS® across Canada. The result will be an even better real estate resource, with more information about the properties displayed on the site.

The first change will be the introduction of interactive mapping. You’ll be able to use Microsoft Virtual Earth software on the site to determine your search area, and to determine where a property is located. Interactive mapping will make it much more convenient to search traditional neighbourhoods or a specific region.

The web site will also have a new streamlined text search. You’ll be able to input your initial search criteria without all of the details of an Advance Search. The site will still offer the detailed or Advance Search option, but also has a streamlined text version to make looking for properties even more convenient.

There will be a new look, or design. The traditional REALTOR® map is still a key part of the web site, but the new layout will make it easier to look for properties and information.

And there will be a new address - www.realtor.ca Don’t worry, you don’t have to memorize it. You’ll automatically be redirected to the new address even if you input our old one.

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Real Estate Investment Terms

May 4, 2008 · Filed Under St. John's Investments and St. John's Real Estate · Comment 

Income-producing properties need to have methods to determine the value of a property. The value of the investment can be determined by using some of the following formulas: net operating incomes, capitalization rate, Loan to Value ratio.

Capitalization Rate (Cap Rate) = net operating income (NOI) / market price

Net Operating Income (NOI) = Rental Income - Operating Expenses

The cap rate is used to estimate the purchase price of income producing properties. A market cap rate is determined by evaluating the financial data of similar properties which have recently sold in a specific market. It provides a more reliable estimate of value than a market Gross Rent Multiplier since the cap rate calculation utilizes more of a property’s financial detail. Typical cap rates run from 8% to 12%

Gross Rent Multiplier (GRM) = Sale Price / Monthly Potential Gross Income

Generally speaking, when comparing similar properties in similar location the lower the GRM, the more profitable the property. GRM does not take into consideration operating expenses.

Return on Investment (ROI) = (initial investment - final investment) / initial investment

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