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The Clive
Uses: rental, condo
Address: 1510 Clive Drive
Municipality: Oak Bay
Region: Urban core
Storeys: 3
The Clive is a three storey purpose-built rental complex situated on a site formerly occupied by a two storey,... (view full profile)
Learn more about the Clive on Citified.ca
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[Oak Bay] The Clive | Rentals | 3-storeys | Built - completed in 2015


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70 replies to this topic

#61 johnk

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Posted 20 January 2016 - 11:23 PM

Just a hunch. Prime site, brand new revenue generator, genteel clientele, easily managed? I dunno really.

#62 Mike K.

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Posted 20 January 2016 - 11:25 PM

And low vacancy rate, low risk, long term stable investment. Rental buildings are a hot commodity in Victoria.

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#63 Victoria Contractor

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Posted 07 February 2016 - 07:48 AM

did anyone read the prospectus...its offered based on an ROI of 3.5%



#64 MarkoJ

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Posted 07 February 2016 - 11:37 PM

did anyone read the prospectus...its offered based on an ROI of 3.5%

 

My RRSPs portfolio pays a dividend of about that much :)


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2023 | Fair Realty

www.MarkoJuras.com Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#65 attica

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Posted 11 February 2016 - 02:10 PM

did anyone read the prospectus...its offered based on an ROI of 3.5%

 

3.5 is the Cap rate, in this case it would only = the ROI if the purchaser paid cash/did not use any financing.

 

otherwords the ROI would need to take into account financing :)

 



#66 johnk

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Posted 11 February 2016 - 03:49 PM

What are the odds there is a cash buyer out there?

#67 UDeMan

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Posted 11 February 2016 - 07:58 PM

Price reduced to $8 million 

 

or about $470,000 per unit


Edited by UDeMan, 11 February 2016 - 08:01 PM.


#68 Sparky

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Posted 12 February 2016 - 04:45 AM

With the lower asking price, the return now on a cash investment annually would return 3.74%. = $300,000 / year on this building.

 

If this property was treated as a true long term investment, let's say a pension fund that didn't need to spend the income on groceries every month, The capital investment would show a return of the monthly rental income AND the annual appreciation of the asset. In this case historically rental properties over the last 30 years in Canada has been an average of 5%.

 

OK kids lets have some fun with the math. Let's have a look and see what a 15 year gamble of $8M looks like on this building.

 

Annual net return @ 3.74 % = $30K deposited at the corner bank monthly at 2.15% over 15 years would show a gross earnings of $5.3M

 

The original asset of $8M would increase in value of 5% / year or double in 15 years to $16M

 

So the original investment of $8M has now become $21.3M in 15 years. A return of over 10 % per anum and we didn't even account for a rental increase of 2 or 3 % a year as my head is starting to hurt.

 

Have you noticed lately that a lot of apartment buildings in Victoria have been purchased by companies that have the word REIT in their names. This ain't a mom and pop business anymore.

 

I'm going back to bed.


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#69 lanforod

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Posted 12 February 2016 - 08:25 AM

With the lower asking price, the return now on a cash investment annually would return 3.74%. = $300,000 / year on this building.

 

If this property was treated as a true long term investment, let's say a pension fund that didn't need to spend the income on groceries every month, The capital investment would show a return of the monthly rental income AND the annual appreciation of the asset. In this case historically rental properties over the last 30 years in Canada has been an average of 5%.

 

OK kids lets have some fun with the math. Let's have a look and see what a 15 year gamble of $8M looks like on this building.

 

Annual net return @ 3.74 % = $30K deposited at the corner bank monthly at 2.15% over 15 years would show a gross earnings of $5.3M

 

The original asset of $8M would increase in value of 5% / year or double in 15 years to $16M

 

So the original investment of $8M has now become $21.3M in 15 years. A return of over 10 % per anum and we didn't even account for a rental increase of 2 or 3 % a year as my head is starting to hurt.

 

Have you noticed lately that a lot of apartment buildings in Victoria have been purchased by companies that have the word REIT in their names. This ain't a mom and pop business anymore.

 

I'm going back to bed.

 

REIT = you can invest in it.



#70 attica

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Posted 12 February 2016 - 08:33 AM

With the lower asking price, the return now on a cash investment annually would return 3.74%. = $300,000 / year on this building.

 

If this property was treated as a true long term investment, let's say a pension fund that didn't need to spend the income on groceries every month, The capital investment would show a return of the monthly rental income AND the annual appreciation of the asset. In this case historically rental properties over the last 30 years in Canada has been an average of 5%.

 

OK kids lets have some fun with the math. Let's have a look and see what a 15 year gamble of $8M looks like on this building.

 

Annual net return @ 3.74 % = $30K deposited at the corner bank monthly at 2.15% over 15 years would show a gross earnings of $5.3M

 

The original asset of $8M would increase in value of 5% / year or double in 15 years to $16M

 

So the original investment of $8M has now become $21.3M in 15 years. A return of over 10 % per anum and we didn't even account for a rental increase of 2 or 3 % a year as my head is starting to hurt.

 

Have you noticed lately that a lot of apartment buildings in Victoria have been purchased by companies that have the word REIT in their names. This ain't a mom and pop business anymore.

 

I'm going back to bed.

 

minus Cap Ex, i doubt they have a structural reserve above the line. They would want the NOI to look as favourable as possible in sales situation.



#71 Szeven

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Posted 15 April 2016 - 10:24 AM

I noticed this is off the web now. Does anyone know what it sold for?



 



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