Cap rate, cash-on-cash, and real cashflow.
The numbers that matter for a buy-to-hold property — modelled the same way an underwriter would, not the back of an envelope.
Excludes capital expenditure reserves, GST on new construction, BC property transfer tax, foreign-buyer tax, and the BC underused/empty-homes regimes — all of which we factor in during an investor consult.
How the three yields differ
- Gross yield ignores everything except rent and price. Useful only as a quick filter.
- Cap rate reflects net operating income, but ignores leverage. Comparable across deals.
- Cash-on-cash is what your equity actually earns after debt — the number investors live or die by.
A note on BC-specific costs
Property Transfer Tax, the additional foreign-buyer tax, GST on new construction, and the Speculation & Vacancy / Underused Housing regimes can change a deal materially. We model these explicitly on engagements.
Real estate services are provided by Moji Dargahi, licensed real estate professional with [Brokerage Name]. HOMS Group is a registered trade name; HOMS Group Corp. is a marketing and technology company and is not a licensed real estate brokerage. Tool outputs are estimates for informational purposes only and do not constitute an appraisal or financial advice.