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| Yield capitalization - Any of several methods used in the income approach to appraising. Yield methods involve certain subtleties and assumptions that vary according to the particular method employed, but include estimating such factors as the required rate of return on investment, the remaining economic life of the property, an investment holding period, the income path, anticipated depreciation or appreciation, and reversionary value. The yield methods stand in contrast to direct sales analysis methods, in which a typical relationship between in come and sales prices is found by simply dividing observed incomes by the sales prices comparable properties, the fraction thus obtained then being applied (In form of a gross income multiplier or an overall rate) to the properties being appraised. Se also building residual technique, discount rate, mortgage-equity analysis, and property residual technique. |
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| Yield rate - The required rate of return on equity capital; this is a component of the capitalization rate (or discount rate or mortgage-equity overall rate) that must be separately specified in band-of-investment analysis and mortgage equity analysis. |
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