income producing properties Tremblant
Income producing properties in Tremblant are properties that are purchased with the intent to generate revenues for the owner typically by renting or leasing the property. Income producing properties include both commercial and residential real estate in Mont Tremblant such as:
- Retail stores
- Office space
- Multifamily buildings
- Single-family homes
- Vacation rental homes being used as an income generator
With the uncertainty of the stock market, the low yield rates on bonds, and low interest rates offered by banks, income producing properties throughout the world have become very sought after investments. Real estate in Mont Tremblant followed the same path and many investors scrambled to do research on low risks real estate investments.
The higher the real estate prices are the more difficult it is to find profitable income producing properties. Caps rates* on high priced real estate located in more desirable locations are as low as 3% to 5 %. In less desirable locations where the real estate market is more affordable cap rates may increase to ass much as 5% to 8% on return. Generally speaking real estate in Mont Tremblant itself is expensive so finding a property that generates income is not really easy.
What is a cap rate? The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property recently sold for $1,000,000 and had an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%.JProperty Metrics