ABSTRACT
To use the income approach the valuer must determine the yield. This represents the rate of return that buyers, at the valuation date, are seeking in relation to the particular interest in that type of property, of that investment quality, in that location. The yield1 is normally based on the analysis of comparable transactions. Valuers must do more than simply analyse the yield – they must also have a clear idea of what the market is doing, why the market is doing it and, if they are to advise adequately on the quality of the investment, what the market is likely to do in the future.
