All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are 27 names in this directory beginning with the letter C.
Capital Gain
A profit from the sale of property or an investment.
Capital Gain Tax
This is a Commonwealth tax payable on the Capital Gain made on the sale of an investment property. Companies pay Capital Gains Tax (CGT) at the company rate of 30% in Australia. Individuals will pay CGT at the rate used for their individual income tax rate for that financial year. For certain entities there is a capital gain discount of 50% if the property is held for longer than 12 months.
Capital Gain Tax Discount
If you hold the asset for more than 12 months you may be eligible to receive a 50% deduction on the Capital Gains Tax (CGT) placed upon the asset.
Capital Loss
This is the loss from the sale of a property or investment.
Capital Returns
This is the return on your capital which can be both positive or negative.
Cash Rate / Bank Rate
The cash rate is the rate at which the Reserve Bank of Australia sets interest rates. The bank rate is the interest rate that banks offer and is above the cash rate to allow for a profit margin.
Cashflow Positive
You have a cash flow positive investment if the incomings are more than your outgoings before tax-deductible items have been claimed (See Positively Geared). You receive more rent than your mortgage repayments, plus you are still ahead after taking into account items such as interest on the loan, maintenance, insurance, land tax, rates, etc.
Caveat
A notice on title proclaiming a possible interest other than that of an owner.
Caveat Emptor
This refers to the idea of 'Buyer beware’. That the risk in a property transaction lies with the purchaser.
Certificate of Title
A document issued showing ownership and interest in a parcel of land.
Chattels
Any fixed asset other than freehold land. Items such as machinery, implements, tools, furnishings, fittings, which may be associated with land use, but which are not fixed to the land or premises or, if fixed, may be removed without causing structural damage to a building.
Commercial Property
Property intended for use by all types of retail and wholesale stores, office buildings, hotels and service establishments. In many property circles, commercial property refers specifically to office property.
Commission
The fee or payment made to an agent for services rendered, such as the sale of property, often calculated with reference to the value of the property, contract or agreement.
Common Property
(a) Land or a tract of land considered as the property of the public in which all persons enjoy equal rights. A property not owned by individuals but by groups; (b) In a home (villa) unit or flat development that part of the property owned and used in common by all the unit or flat owners or occupiers and which is maintained by the Body Corporate.
Company Title
(a) Method of obtaining ownership of real estate by way of company shares (usually preceded Strata Title Act); (b) Under Company Title, land and buildings are owned by a private company. The company’s shareholding structure is organised so that ownership of a certain number of shares entitles the shareholder to exclusive possession of a part of the building.
Compound Interest
Where interest is calculated on a sum that includes previous interest payments.
Conditions of Sale
The conditions applicable to a sale contract made between a vendor and purchaser.
Conditions, Convenants, and Restrictions (CC and Rs)
The regulations that define how a property may be used and any rules the land developer makes for the benefit of all owners in a subdivision, such as property size, height, colour, façade, set back from the road, and so on.
Contingency Fund
The purpose of a contingency fund is to cover necessary and ordinary expenses (i.e. repairs and maintenance) arising during any short term vacancies in the property.
Contract
A legally binding agreement.
Contract of Sale
An agreement relating to the sale of property, which expresses the terms and conditions of sale.
Conveyance
A deed which transfers ownership of common law title from one person to another.
Cooling Off Period
A period of time after the sale of a contract where the buyer can cancel the contract without penalty. It usually does not apply in the case of auctions.
Corporate Workshops
Sound Property takes bookings for free corporate workshops of 10 or more people for a lunch or after work session on the basics of investing.
Counter Offer
A new offer as to price, terms and conditions, made in reply to a prior unacceptable offer. Normally the counter offer terminates the previous offer.
CPI (Consumer Price Index)
How the prices of a “basket” of items which represent those regularly bought by Australian households goes up and down over time – in other words, the “cost of living” or “inflation”. If your investment property rises in value faster than the CPI, then it is said to be “doing better than the cost of living”, and the difference between the CPI and the percentage your property has increased in value is called a “real” profit.
Cross-Securitisation / Cross-Collateralisation
When the financial institution uses your property (whether owner-occupied or investment) as security for other property you purchase.