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There are 10 names in this directory beginning with the letter G.
Gain
The increase on your investment relating to capital returns, and not including historical distributions.
Gazumping
Where the vendor agrees to sell a property, but then sells it to another party on more favourable terms.
Gearing
The strategy of borrowing money to purchase a property, otherwise known as “leveraging”.
Gearing (Leverage)
A measure of indebtedness i.e. the extent of borrowings as against the equity held by a person or company in an asset. Usually expressed as a ratio. Positive gearing refers to the magnification of financial gain resulting from borrowing when the cost of capital (borrowed) is less than the return on capital and leads to magnification of returns to equity. Negative gearing refers to the same relationships, but where the cost of capital exceeds the return on capital. Persons would normally only negative gear in the expectation of positive returns in the future.
Gearing Effect
This is calculated by “Historical Capital Growth %” / Loan-to-Value Ratio (LVR)
Goods and Services Tax (GST)
A consumption tax imposed by the Commonwealth levied on the provision of goods and services.
Grace Period
A period when a mortgage payment or other debt becomes past due and before it goes into default.
Gross Rental Income
This is the ratio of a real estate investment to its monthly rental income before expenses such as property taxes, insurances and property management.
Gross Yields
The yield on an investment before the deduction of taxes and expenses. Gross yield is expressed in percentage terms. It is calculated as the annual return on an investment prior to taxes and expenses divided by the current price of the investment
Guarantor
A person who undertakes to fulfil a contract if the main party defaults.