Comments on: Foreign investment funds scrambling for slice of China’s property pie http://www.china-briefing.com/news/2007/06/26/foreign-investment-funds-scrambling-for-slice-of-property-pie.html Fri, 5 Sep 2008 22:59:43 +0000 http://wordpress.org/?v=2.3.2 By: offpeak808 http://www.china-briefing.com/news/2007/06/26/foreign-investment-funds-scrambling-for-slice-of-property-pie.html#comment-133 offpeak808 Wed, 04 Jul 2007 10:02:23 +0000 http://www.china-briefing.com/news/2007/06/26/foreign-investment-funds-scrambling-for-slice-of-property-pie.html#comment-133 "A typical gross yield for investment in a first tier city typically ranges between 8-10 percent..." Vague. I think this all depends on how "yield" is calculated. Some property brokers like to base it on the maximum rental rate at 100% occupancy, a sort of maximum potential cash flow forecast (how much gas you can put in the car.) Some investment funds calculate it as (Net Operating Income/Price) - taxes, more like a cap rate (the gas mileage, depending on the price of gas). And a lot of people come up with something in between. I'm interested to know what China Briefing defines as "Yield" on a property investment. “A typical gross yield for investment in a first tier city typically ranges between 8-10 percent…” Vague.

I think this all depends on how “yield” is calculated. Some property brokers like to base it on the maximum rental rate at 100% occupancy, a sort of maximum potential cash flow forecast (how much gas you can put in the car.) Some investment funds calculate it as (Net Operating Income/Price) - taxes, more like a cap rate (the gas mileage, depending on the price of gas). And a lot of people come up with something in between.

I’m interested to know what China Briefing defines as “Yield” on a property investment.

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