When investing in real estate it is vital for owners to stay up to date on statistics and housing trends. This knowledge allows investors to understand how their revenue and costs will be affected. It can also be utilized to take advantage of the market by properly timing purchases or sales. When done properly, these actions can maximize opportunities and revenue growth. There are endless factors that can influence an investor's actions, and this article outlines the importance of considering these statistics as well as the average data for Calgary multifamily buildings. The numbers used were collected from the Commercial Edge database and are dated from November 2021 to 2022. For professional advice on investing in multifamily real estate, reach out to Kamil Lalji, a real estate agent with over 17 years of experience. Contact him here.
Beginning with possibly the most basic statistic, the multifamily average sale price in Calgary. The average sale price communicates to investors the long-term trend of prices, as well as whether they’re attaining a good deal on their transaction. It allows potential multifamily owners to understand the current value of the property in comparison to what they’re buying or selling it for. The current average multifamily sale price in Calgary from November 2021 to 2022 was $7,373,581.19. The properties considered had a total average of approximately 37 units. Investors can also view larger-scale trends to predict the change in average sale prices, making this statistic an important variable to consider when making a real estate transaction.
Another important piece of data is the average price per door of multifamily buildings in Calgary. This is an additional means for investors to compare the value of a property to the price. Similarly to average sale price, it can be used on a larger scale to determine the best time to invest in real estate, specifically in multifamily buildings. The average price per door in Calgary from late 2021 to 2022 is $177,734.44.
The last statistic to be explored is the capitalization rate, cap rate, of Calgary multifamily buildings.The cap rate is the estimated amount of revenue a property can return which is drawn from its value or price per year (income over purchase price). It includes all operation expenses, but not the purchase or sale of the property. Along with communicating the expected return on investment, the cap rate also indicates the risks associated with a property. Knowing the cap rate of a property is vital in the real estate decision-making process, especially for multifamily listings as it can dictate whether the property is worth the investment. A good cap rate for a rental property is typically 5-10%; the November 2021 to 2022 average cap rate of multifamily buildings in Calgary is 5.19%.
Overall, understanding the statistics behind an investment property will aid in maximizing your revenue. While the average sale price, average price per door, and average cap rate are vital, there are endless variables that could be considered. To make the most of your investment property contact Kamil Lalji to gain professional advice on multifamily buildings in Calgary. If you’re searching for someone to manage your properties learn more about our property management services here.