Cap rate, cash-on-cash, and real cashflow.
The numbers that matter for a buy-to-hold property — modelled the same way an underwriter would, not the back of an envelope.
Type an area to pull its surveyed rent and vacancy rate into the model.
Excludes capital expenditure reserves, GST on new construction, BC property transfer tax, foreign-buyer tax, and the BC underused/empty-homes regimes — all of which we factor in during an investor consult.
How the three yields differ
- Gross yield ignores everything except rent and price. Useful only as a quick filter.
- Cap rate reflects net operating income, but ignores leverage. Comparable across deals.
- Cash-on-cash is what your equity actually earns after debt — the number investors live or die by.
A note on BC-specific costs
Property Transfer Tax, the additional foreign-buyer tax, GST on new construction, and the Speculation & Vacancy / Underused Housing regimes can change a deal materially. We model these explicitly on engagements.
HOMS Real Estate Services Corp. is a technology, intelligence and multidisciplinary services company and is not a licensed real estate brokerage. Licensed real estate trading services are provided by Moji Dargahi, licensed real estate professional with Royal Pacific Realty Corp. HOMS is not an engineering firm: analysis outputs are preliminary screening estimates for informational purposes and are not sealed engineering documents. Tool outputs are estimates for informational purposes only and do not constitute an appraisal, recommendation, financial advice or legal advice.