Real estate yield refers to the annual income from a property, divided by the property’s total cost or market value. This concept falls under the broader classification of investment returns, which includes stocks and bonds.
Real estate yield differs from other similar concepts like capital gains, where capital gains represent the increase in property value over time, while real estate yield focuses on income generated.
Popular features of real estate yield in Bangkok include rental income, property value appreciation, and occupancy rates. Rental income arises from leasing property to tenants, property value appreciation increases the worth of the property over time, and high occupancy rates ensure steady income.
Common features across various yields include income regularity, risk levels, and investment period. Income regularity concerns consistent earning from the asset, risk levels pertain to the potential for financial loss, and the investment period represents the time horizon for holding the asset.
Unusual features of real estate yield, specifically in Bangkok, involve foreign ownership laws, location premiums, and market volatility. Foreign ownership laws restrict foreigners’ direct land ownership, location premiums reflect higher yields in prime areas, and market volatility indicates fluctuating income due to economic factors.
Unique features encompass leasehold opportunities for foreigners, specific legal structures for foreign investment, and development-linked yields. Leasehold opportunities offer foreigners a way to invest, specific legal structures facilitate foreign investment, and development-linked yields provide income through project completion stages.
Real estate yield stands out from capital gains through its emphasis on income generation over asset value appreciation. While both serve as key investment return types, real estate yield offers a predictable income stream, distinguishing it from the less predictable nature of capital gains.
For more information on investment returns and their categorizations, visit our glossary about Bangkok real estate.