I am a property and so they are the property must be able to the campaign in some way evaluated against these competing investments and this is where yield is so useful because you gives you a rate of return which can be related to the rates return on money lines and all soon profits on business ventures and said he already is an attractive compactor all investment value and so by using yield.
We saw nor able to more readily understand property as an investment object now if we know the yield that’s operating at the property market and we know the raid with yet the capital value simply by dividing the rains the return the net operating income by the yield and that’s exactly what the income approaches very simply in this second last book pointy capital value of the sale price a plane equals.
The return has in the rain divided by the yield this means we sought to get the market to silence the rental value of the property we tend to do that by looking at comparable investment properties and what the rental value is likely they will without will too rent them for Whitley some for we also go to the market.
The funny deal nicely that going to the market so these two sectors signal appears to be a sales comparison approach we don’t have to go to exactly the same kinds a property to look at the yields in fact we don’t have to go two properties Richard so close to identical to look at the rental value either all we have to do is asked a question will this property rent for more or less than the property next door across the road or down the street Wei-Wei not looking at the property being physically comparable that simply being similarly attractive in terms of its ability to attract raid like wise in terms of yield we can’t quite like the yield by looking at comparable properties. For more: www.sydneypropertyvaluations.net.au