All Topics / Heads Up! / Australian Residential Capitalisation Rates

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  • Profile photo of rodgertrodgert
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    @rodgert
    Join Date: 2005
    Post Count: 3

    Hi there,

    I’m reading a book about Australian Property Development and I have come across a term I would like to understand much further.

    What is the ‘capitalisation rate’ for residential properties mean?

    It is used in the book to calculate the value of a future development based on Net operating Income and the capitalisation rate.

    How is this rate worked out?

    Who works it out?

    Does it differ across states?

    How often do these rates change?

    Is there a web site one can use to view these updated rates?

    Any info appreciated

    Rodg

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