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Mortgage Terms Explained: Yield

Money : Mortgages

The yield is often used in the parlance of those who buy properties as an investment.

You will hear the yield on a buy to let property, expressed as a percentage.

The higher the yield the better for a property owner.

If the yield is 10% for instance, it means that they can recoup 10% of the value of the property each year in anticipated rental income. Hence on this yield - which is very good - they could pay for the property in just ten years!


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By: Stephen

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