Applies an Investment Yield to a Rental Value. Yields are the capitalisation rates used to derive the end value for the rental income of the completed development.
In Prodev you enter the investment yields before providing the rental income information. There are a total of 20 yields available. For most simple appraisals you will probably have only used one yield and this will have normally been entered as Yield-A. In this case you would not need to use the ‘Yield’ button because all rental values by default are set as being capitalised at Yield-A.
For more complex projects you may require more yields either because different yield rates apply to different parts of the development or for phasing purposes you may wish to divide your capital value into separate parcels. In these cases values will have been provided for other yields.
You can see at a glance which rents are being capitalised at which yield by looking at the suffix on each of the rental values where ‘-A’ means Yield-A, ‘-B’ means Yield-B and so forth.
To change the Yield for the highlighted rent then click the ‘Yield’ button and a drop-down will display showing the yields available. Double-click the yield letter required (selecting then pressing the Enter key has the same effect).
The ‘Yield’ button only applies to rental values. If there are no yields present then a message box will display to this effect.