Real Estate Glossary Terms Beginning With – Y

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Updated: October 1, 2021

Terms Beginning With - Y

Property Development & Investment Glossary, Terms & Definitions

Yard

1. A unit of length equal to three feet.

2. The empty space between a building's property line and the building's front, back, or side wall. There are basically three kinds of yards:

Front yard: The part of the yard that faces the street and goes from the building's front edge to the front property line. Both yards on a corner lot that face a street are front yards.

  • The back yard is the yard on the other side of the house from the front yard. It goes from the back of the house to the back property line.
  • A side yard is the space between a building's side wall and the side property line next to it. It runs from the front yard to the back yard. Tenancy from year to year A type of rental agreement where the rent is set for a certain number of years. To end this tenancy, you must give enough notice (or, if it's not in the contract, a reasonable amount of time). When a tenant stays longer than the first year, he or she usually makes a new tenancy that lasts for another year.

Yield

the money you earn or profit from a real estate transaction

The profit or return on an investment expressed as a percentage of the amount invested; the rate of return. In the real estate industry, yield refers to the effective annual amount of income generated by an investment. The yield on income property is the proportion of the property's annual net income to its cost or market value. The spread or differential between the cost of acquiring the funds lent and the interest rate charged is the yield or profit to a lender. The profit or return on an investment expressed as a percentage of the amount invested; the rate of return. In the real estate industry, yield refers to the effective annual amount of income generated by an investment. The yield on income property is the proportion of the property's annual net income to its cost or market value. The spread or differential between the cost of acquiring the funds lent and the interest rate charged is the yield or profit to a lender.

Yield

The profit earned on an investment over a specific time period is used to determine the rate of return.

Yield capitalization

In the income approach to valuing a property, cash flows are projected over a holding period to include the sale proceeds at the end of the holding period. The cash flows are then discounted at a chosen yield rate to get an idea of their current value. The rate of return on the investment can be compared to returns on other investments.

Yield spread premium (YSP)

The difference between the market interest rate and the (usually higher) interest rate charged to the buyer is expressed as an upfront loan charge. The premium was frequently used to reduce the amount of money buyers had to bring to the closing table. Unfortunately, YSP became a way for mortgage brokers to raise their commissions. Yield spread premium bonuses are prohibited by the Dodd-Frank Act because they raise the total cost of the loan.

Yield to maturity

A loan repayment method in which a borrower pays a certain percentage of the actual funds borrowed each year (such as interest only) and repays the loan in full at the end of its maturity.

Yuppie

Slang for young professionals who are moving up in their careers, or for young singles or couples with good job skills and good chances of steady income gains. After the recession of the 1990s, the term stopped being used as much.

Glossary Index 

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