BC Real Estate Trading Services Course Real Estate Math & Calculations 4

Question 1

A BC strata unit has a unit entitlement of 120 out of a total of 2,400. The annual strata budget is $180,000. What are this owner's monthly strata fees?

Accepted Answer

$750

Answer

Owner's share = 120 ÷ 2,400 = 5% of total. Annual share = 5% × $180,000 = $9,000. Monthly = $9,000 ÷ 12 = $750.

Question 2

A BC buyer is purchasing a $480,000 home with a 20% down payment. The mortgage is at 5.5% with a 25-year amortization. The monthly payment factor is $6.10 per $1,000 borrowed. What is the approximate monthly payment?

Accepted Answer

$2,342

Answer

Down payment = 20% × $480,000 = $96,000. Mortgage amount = $384,000. Monthly payment = ($384,000 ÷ $1,000) × $6.10 = 384 × $6.10 = $2,342.40.

Question 3

A BC property has a selling price of $1,200,000. Property Transfer Tax applies: 1% on first $200,000, 2% on $200,001–$2,000,000, and 3% on amounts over $2,000,000. What is the PTT?

Accepted Answer

$22,000

Answer

PTT = (1% × $200,000) + (2% × $1,000,000) = $2,000 + $20,000 = $22,000.

Question 4

A BC rental property has a price of $950,000 and annual gross income of $52,000. What is the gross income multiplier (annual)?

Accepted Answer

18.3

Answer

Annual GRM (or GIM) = Sale Price ÷ Annual Gross Income = $950,000 ÷ $52,000 = 18.27 ≈ 18.3.

Question 5

A BC property has an effective gross income of $96,000, a vacancy rate already applied, and operating expenses of $38,000. The property sold for $1,160,000. What is the cap rate?

Accepted Answer

5.0%

Answer

NOI = Effective Gross Income - Operating Expenses = $96,000 - $38,000 = $58,000. Cap Rate = NOI ÷ Sale Price = $58,000 ÷ $1,160,000 = 0.05 = 5.0%.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Real Estate Math & Calculations 4