Income property value is based upon a net operating income (NOI) rate of return. That is, if owned free and clear what would be the annual rate of return based upon that net cash bottom line without interest, depreciation or capital expenditures. This rate of return is called a capitalization (cap) rate. A NOI of $90,000 at an 8% cap = $1,125,000. Or a property listed at $3million with a NOI of $270,000 is an offering at 9% capitalization or rate of return. We have recently come off…

As a Realtor I hate to see the roller coaster markets. Wouldn't it be nice if realestate grew at an even pace between 3% and 6%? But what we seem to see isinflated markets until a "bubble burst". The last couple years has seen“hyperinflation” in most residential markets that we all knew was not sustainable.All real estate markets are local so this may apply to most but not all NorthAmerican markets. Latest statistics in Windsor Ontario are that the marketpeaked in February 2022. Average sales price has dropped…