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Flashcards in Yields Deck (9)
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1

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

2

What is gross yield

The yield likely to be returned before purchaser costs

3

What is net yield

The yield likely to be returned after purchaser costs

4

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

5

What is an equivalent Yield

The weighted average yield between the term and reversionary incomes

6

Is growth and risk reflected in an equivalent yield

No

7

Is growth and risk reflected in a equated yield?

Yes

8

What is an equated yield

The IRR of a property that would give a net present value of £0

9

What is a reversionary yield

Likely yield to be achieved when the passing rent is adjusted in line with the market rent