Here is M-Z!
A statistical measure often used to measure movements in property prices. The median price is derived by arranging property prices in ascending or descending order and then selecting the middle price. It is not the average.
A loan that is secured by property.
The interest payable on an investment loan is greater than the income received.
The interest payable on an investment loan is equal to the income received.
Off The Plan
Signing a contract for property which has yet to be built. This is often the practice of developers of blocks of high rise units and apartments.
Positive Cash Flow
Income from the property (including tax benefits) is greater than all the expenses (including interest, rates and taxes, repairs, etc.).
The income from a property is greater than the interest payable on the investment loan. The difference between positive gearing and positive cash flow (and negative gearing and negative cash flow) is that cash flow includes all income and all expenses whereas gearing only refers to rental income vs interest.
Principal and Interest Loan
A loan where both interest and principal are repaid.
The annual rental income as a percentage of the value of the property (also called the rental yield or yield).
The potential that a property will lose money.
Self-Managed Superannuation Fund (SMSF)
A type of trust that exists with the sole purpose of funding the beneficiaries’ retirement.
A state government charge incurred when buying property.
Most flats, units, apartments and townhouses that have some common areas are on strata title. All the dwellings are on a separate title, but there will be some common property that is shared by all owners, such as water and sewerage pipes, driveway, stairwell and garden.
The act of dividing land into smaller allotments.
The total number of vacant investment properties as a percentage of the total number of investment properties in an area.
The definitive value of a property. It is based on recent comparable sales in the area. It is conducted by a qualified valuer for a fee. Valuations are often required when you are borrowing money, sorting out a divorce settlement or finalising a deceased estate. Valuations can be used as evidence in a court of law to help resolve a dispute.
Variable Rate Loan
A loan in which the interest rate fluctuates.
Owner of property.
The income as a percentage of the value of the property