Property Valuation

What is yield in real estate investment?

AThe annual rent collected
BThe return on investment, expressed as a percentage of the investment✓ Correct
CThe profit from property sale
DThe capitalization rate

Explanation

Yield in real estate is the return on investment expressed as a percentage. Different yield measures exist: initial yield (first year NOI / purchase price), overall yield/cap rate, equity yield, and total return including appreciation.

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