Yields Flashcards
What is a yield
Return you are likely to receive from an investment. A yield is expressed as a percentage by dividing the rental value by the capital value
What is gross yield
The yield likely to be returned before purchaser costs
What is net yield
The yield likely to be returned after purchaser costs
What is an all risk yield
A yield which accounts for all of the risks of owning the property such as inflation, obsolescence and void periods
What is an equivalent Yield
The weighted average yield between the term and reversionary incomes
Is growth and risk reflected in an equivalent yield
No
Is growth and risk reflected in a equated yield?
Yes
What is an equated yield
The IRR of a property that would give a net present value of £0
What is a reversionary yield
Likely yield to be achieved when the passing rent is adjusted in line with the market rent
