Ontario Real Estate Licensing Exam Practice · Question
A commercial property in Ottawa has a net operating income (NOI) of $150,000 and recently sold for $2,500,000. What is the capitalization rate (Cap Rate) for this property?
The capitalization rate is calculated by dividing the Net Operating Income (NOI) by the property's sales price. So, $150,000 / $2,500,000 = 0.06 or 6.0%.
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Question: A commercial property in Ottawa has a net operating income (NOI) of $150,000 and recently sold for $2,500,000. What is the capitalization rate (Cap Rate) for this property?
Answer options: ✅ 6.0%
- 16.7%
- 60%
- 1.67%
Correct answer: 6.0%
Explanation: The capitalization rate is calculated by dividing the Net Operating Income (NOI) by the property's sales price. So, $150,000 / $2,500,000 = 0.06 or 6.0%.
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