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Exact(32)
"It's all based on what their rental yield is going to be," she said.
"By all the traditional measures, like rental yield, this is a bubble".
They thought they were getting a guaranteed rental yield far into the future, thanks to leasing arrangements with the university.
They wanted this housing demand to carry no development risk – in other words, they wanted to buy the output or rental yield.
The $330 million price tag puts a juicy 13percentt rental yield on this prime piece of Manhattan real estate in the first year.
The average property price there is £401,405 and the average rent £2,058, giving a rental yield of just over 6%.
Similar(27)
The owners are promised rental yields of 5 percent before expenses.
But rental yields are now below the cost of finance.
Due to its high property prices, rental yields are "relatively modest", according to HSBC.
The study calculates rental yields for 59 cities around the world.
An ideal private purchase or buy to let investment with good rental yields.
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