Yields Flashcards
What is an All Risks Yield (ARY)?
Yield reflecting all the prospects and risks attached to a particular investment.
Tend to apply to a rackrented property (YP).
What is a true yield?
Assumes rent is paid in advance and not in arrears (traditional valuation practice looks at rent in arrears).
What is a nominal yield?
Initial yield assuming rent is paid in arrears.
What is the Gross Yield?
Yield not adjusted for purchasers’ costs.
What is the Net Yield?
Yield adjusted for purchasers’ costs.
What is an Equivalent Yield?
Average weighted yield when a reversionary property is valued using an initial and reversionary yield. Reflects the risk throughout the lease.
What is the initial yield?
Simple income yield for current income and current price. E.g. Income/Price = Initial Yield
What is the Reversionary Yield?
Market Rent divided by the current price on an investment let at a rent below MR.
What is a Running Yield?
Yield at one moment in time.
