Glossary entry (derived from question below)
English term or phrase:
positive spread, (property yields vs. interest rates)
English answer:
the difference between the profit from property and other investments
Added to glossary by
juvera
May 3, 2005 07:41
19 yrs ago
English term
United Arab Emirates
Translation services company in Dubai
Native in: Arabic
Works in: English to Arabic, Arabic to English, Arabic
spread property yields
English
Bus/Financial
Real Estate
High quality real estate well priced relative to interest rates & bonds – positive spread property yields vs. interest rates
Secure financing available at high loan to value (85%), interest rates relatively low, can fix loans to match maturity of lease
Very favourable tax treatment
Query: I am focusing on the meaning of the word "spread" here.
Thank you
Secure financing available at high loan to value (85%), interest rates relatively low, can fix loans to match maturity of lease
Very favourable tax treatment
Query: I am focusing on the meaning of the word "spread" here.
Thank you
Responses
| 5 +3 | positive spread, difference... |
juvera
|
| 3 | reduced risk (improved likelihood of a good yield) |
Elevenít (X)
|
Responses
+3
3 hrs
juvera
Works in field
Selected
positive spread, difference...
You have to read the whole - "positive spread property yields vs. interest rates". The spread here is the difference between the profit the property brings in comparison to interest rates, if that money was paying interest in the bank or from bonds.
Some examples for the definition of "spread", where it means "difference":
The difference in yield between two securities.
www.investinginbonds.com/learnmore.asp
The difference between two rates or prices
www.amsouth.com/cbrc/glossary.asp
The difference between funding costs and the rate of return to the lessor on a lease.
www.lakeunionleasing.com/Business/glossary.htm
Some examples for the definition of "spread", where it means "difference":
The difference in yield between two securities.
www.investinginbonds.com/learnmore.asp
The difference between two rates or prices
www.amsouth.com/cbrc/glossary.asp
The difference between funding costs and the rate of return to the lessor on a lease.
www.lakeunionleasing.com/Business/glossary.htm
4 KudoZ points awarded for this answer.
Comment: "Thank you juvera and all"
39 mins
reduced risk (improved likelihood of a good yield)
It is difficult to pin down the exact meaning here, but 'spread' is normally used for yields or investments as a way of reducing the risk of loss or unfavoiurable terms. The 'spread' would be that the yeild was from more than one source and hence any local loss from an individual source would be offset by the other investments.
This isn't really spelt out, but the implication is that the investment is a better one and more secure (more likely for the investment to outperform the interest rates) than a simple investment in an individual property.
This isn't really spelt out, but the implication is that the investment is a better one and more secure (more likely for the investment to outperform the interest rates) than a simple investment in an individual property.
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