2006-11-21 23:19:09 · 3 answers · asked by Le Wabbit 1 in Business & Finance ➔ Renting & Real Estate
Is this agricultural land? It may mean crop yield. Rental return of 96% is not realistic.
2006-11-22 01:57:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In commercial real estate, yield is defined as the capitalization rate or CAP rate. This is a static measure that measures the total cash flow from a property. If the property has a 96% CAP rate, it means that he can expect almost $9,600 in rental income for a value of $10,000. This sounds kind of unrealistic.
In this case, yield might be referring to appreciation in value....
2006-11-22 01:20:03 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
Rental property? It means he can re-coup 96% of the value of the property each year.
2006-11-22 00:40:46 · answer #3 · answered by Barbara 5 · 0⤊ 0⤋