Yield Definitions

Question 1

All Risk Yield

Answer 1

The remunerative rate of interest used in the valuation of a fully let property let at Market Rent reflecting all the prospects and risks attached to the particular investment

Question 2

True Equivalent Yield

Answer 2

Assumes rent is paid in advance (traditional valuation practice assumes rent is paid in arrears)

Question 3

Nominal Equivalent Yield

Answer 3

Initial yield assuming rent is paid in arrears

Question 4

Gross Initial Yield

Answer 4

The yield is not adjusted for purchasers’ costs

Question 5

Net Initial Yield

Answer 5

The yield is adjusted for purchasers’ costs

Question 6

Equivalent Yield

Answer 6

Average weighted yield when reversionary property is valued using an initial and reversionary yield

Question 7

Initial Yield

Answer 7

Simple income yield for current income and current price

Question 8

Reversionary Yield

Answer 8

Market Rent divided by current price on an investment let at a rent below the MR

Question 9

Running Yield

Answer 9

The yield at one moment in time