Ontario Real Estate Licensing Exam Practice · Question
Which of the following is typically a primary consideration for a commercial real estate investor when evaluating a property for purchase?
The capitalization rate (cap rate) is a fundamental metric in commercial real estate, representing the rate of return on a real estate investment property based
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Question: Which of the following is typically a primary consideration for a commercial real estate investor when evaluating a property for purchase?
Answer options: ✅ The cap rate (capitalization rate)
- The proximity to public schools
- The number of bedrooms and bathrooms
- The colour of the exterior paint
Correct answer: The cap rate (capitalization rate)
Explanation: The capitalization rate (cap rate) is a fundamental metric in commercial real estate, representing the rate of return on a real estate investment property based on the income that the property is expected to generate. It helps investors compare the relative value of different income-producing properties.
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- A buyer is considering a mortgage product that allows them to prepay a portion of their principal at any time
- A commercial property in Toronto is sold for $2,000,000. The vendor is an HST registrant. What is the buyer's
- What is the primary purpose of registering a deed under the Registry Act in Ontario?
- What is the primary role of a 'title search' in a residential real estate transaction in Ontario?
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