Finance
In South Carolina, what does 'yield' mean in real estate investment?
AThe physical crop yield from agricultural property
BThe return on investment expressed as a percentage of the purchase price or investment amount✓ Correct
CThe rate at which a property appreciates
DThe lender's required minimum return on a mortgage
Explanation
Yield is the return an investor earns on a real estate investment, expressed as a percentage of the investment. It can be calculated as NOI divided by purchase price (cap rate) or total return including appreciation.
Related South Carolina Finance Questions
- In South Carolina, 'impound accounts' (also called escrow accounts) held by lenders are used to:
- In South Carolina, which type of loan is backed by the federal government through FHA insurance and requires a minimum 3.5% down payment (with a 580+ credit score)?
- Which federal law prohibits lenders from charging excessive fees for settlement services and requires disclosure of kickbacks?
- What is 'negative amortization' in a South Carolina mortgage?
- The Federal Reserve's monetary policy affects South Carolina mortgage rates primarily through:
- Which South Carolina homebuyer assistance program is administered at the state level for first-time buyers?
- In South Carolina, which type of mortgage loan has an interest rate that can change periodically based on a market index?
- In South Carolina, which federal act requires lenders to provide the Annual Percentage Rate (APR) to borrowers?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →