Yield Definitions Flashcards
All Risks Yield
Remunerative rate of interest used in valuation of fully let property let at market rent reflecting all the prospects and risks attached to the particular investment
True Yield
Assumes rent is paid in advnce and not in arrears
Nominal yield
Initial Yield assuming rent is paid in arrears
Gross Yield
Yield not adjusted for purchasers costs
Net Yield
The resulting yield adjusted for PC’s
Equivalent yield
Avergae weighted yield when a reversionary property is valued using an initial and reversionary yield
Initial Yield
Simple income yield for current income and current price
Reversionary yield
MR divided by current price on an investment let at a rent below MR
Running Yield
The yield at one moment in time