Investment Analysis term
R (cap rate) = capitalization rate
【meaning】
≒ expected net yield of the market.
R = risk-free interest rate + inflation rate + risk premium
Difficult and into words, but actually now can be expected yield of the property.
R (cap rate) = capitalization rate
【meaning】
≒ expected net yield of the market.
R = risk-free interest rate + inflation rate + risk premium
Difficult and into words, but actually now can be expected yield of the property.
Cap Rate Definition
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.
Example, if a property was listed for
$1,000,000 and created an NOI of $100,000, then the cap rate would be 10%.
This will
be calculated V (Value) asset value based on.
V (Value) = NOI (net operating income) ÷ R (cap rate)
V (Value) = NOI (net operating income) ÷ R (cap rate)
Person who worries by real estate
CF Nets Osaka Branch
Please contact us to Tomoya Yamaguchi.
CF Nets Osaka Branch
Please contact us to Tomoya Yamaguchi.
Osaka,
Kita-ku, Osaka Umeda
1-3-1-500
Co., Ltd. CF Nets Osaka Branch 530-0001
Co., Ltd. CF Nets Osaka Branch 530-0001
e-mail:yama.t@cfnets.co.jp