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A property is expected to have NOI of $100,000 during the first year. Using a 10 percent yield rate (YO) and a five-year holding period,
A property is expected to have NOI of $100,000 during the first year. Using a 10 percent yield rate (YO) and a five-year holding period, estimate the value under the following assumptions: a. NOI will be level but the property value will increase by a total of 15 percent over the five years. b. Both the NOI and property value will increase by 3 percent per year over the five-year holding period.
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