Glossary Terms

Annualised Average Percentage Rate or AAPR is sometimes referred to as the comparison rate. This figure takes into account all the costs associated with the loan and is used to compare loan products.

Purchase costs such as Legal and professional fees, mortgage charges, stamp duty and deposit.

Affordability is an important micro level market driver. It is the relationship between average household incomes, and average mortgage repayments. Data can be drawn from the ABS Census to determine the debt ratio in a given market and suburb. Should mortgage repayments represent a higher portion of household income, it will leave less surplus after basic living expenses. Areas where prices appear relatively 'cheap' may also have a high debt ratio and will be the first markets to feel the impact of higher interest rates, unemployment or economic uncertainty. To reduce this risk it is advisable to look for suburbs with less than 30% of incomes going towards mortgage repayments. Affordability is just 1 of Sound Property's 15 Key Investment Drivers - you can learn about the other 14 on the "Investment Agency" page of our website.

An Agent is a person authorised to act for another (usually the owner) in the selling, buying, renting or management of a property.

This is two or more agents employed by a principal to sell or let real estate and share commission.

This is an amount in your contract for things that might come up which have not been initially selected and specified in the construction contract.

This is the length of time a loan is calculated over and repaid.

In Australia, the term means an opinion of the potential saleability of a residential property by a licensed Real Estate Agent.

This is an increase in the value of an asset over time, which can result in capital gains.

Arrears are unpaid debts.

This is which way your property faces e.g. ‘a northerly aspect’ or 'westerly aspect'.

Also known as 'Taxable Value', this is a value which is based on definitions contained within applicable laws relating to the assessment, rating, and/or taxation of real property.

This is a sale usually in public, by an auctioneer, in which property is sold to the highest bidder.

A variable home loan at a lower rate but with fewer features than a standard variable rate home loan.

One percent (1%) is the equivalent of 100 basis points.

A verbal or written offer to purchase.

Also called an "owners corporation". These are formed by the owners of a piece of land that is subdivided into flats, units or apartments in order to manage and maintain the common areas everyone uses, such as stairwells, the car park, or pool.

Sometimes if a loan is paid off early you may have to pay a fee or costs. These are referred to as "break costs".

Anyone who buys and sells goods or assets for others.

The Building Regulations are minimum standards for design, construction and alterations to virtually every building. They are developed by the Government and approved by Parliament.

This is an offered service for those who would like assistance to secure a specific type of investment. This service is designed to deliver on a very specific property brief, saving clients time, money and stress while minimising risk.

A Buyers Agent represents a property buyer in negotiations with a vendor or his / her agent.

The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices are at a relatively low level, giving the buyer an advantage. An over-supply causing prices to decline.

A profit from the sale of property or an investment.

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.

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.

This is the loss from the sale of a property or investment.

This is the return on your capital which can be both positive or negative.

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.

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.

A notice on title proclaiming a possible interest other than that of an owner.

This refers to the idea of 'Buyer beware’. That the risk in a property transaction lies with the purchaser.

A document issued showing ownership and interest in a parcel of land.

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.

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.

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.

(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.

(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.

Where interest is calculated on a sum that includes previous interest payments.

The conditions applicable to a sale contract made between a vendor and purchaser.

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.

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.

A legally binding agreement.

An agreement relating to the sale of property, which expresses the terms and conditions of sale.

A deed which transfers ownership of common law title from one person to another.

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.

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.

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.

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.

When the financial institution uses your property (whether owner-occupied or investment) as security for other property you purchase.

The date on which a contract of sale is finalised and final payment is made.

A sum of money that is owed or due.

A document executed under seal. For example, a conveyance.

Failure to pay a debt by the due date.

The level of occupancy in a given area, or the number of people permitted to reside in an area. For example, inner-city areas are usually higher density than outer-suburban areas.

A sum of money you put down to “prove” that you are serious about purchasing a property, that you wish to secure it at the price on offer, and you can arrange for the finance to allow you to buy it. If you decide not to proceed, for whatever reason, this deposit may or may not be refundable in whole or in part.

As buildings get older and items within it wear out, the ATO allows property investors to claim these deductions related to the building.

Approval from the relevant planning authority to construct, add, amend or change the structure of a property.

Not “putting all your eggs in one basket” as regards your investment risk. A smart diversified property investment portfolio would include a diverse group of properties.

To withdraw funds from a loan account, as with house and land purchases with a construction loan, where building progress payments are “drawn down” on an on-going basis depending on what stage the “build” is at.

An investigation of a business, service or product prior to signing a contract or investment.

A right to cross, or otherwise use, someone else's land for a specified purpose.

A charge or liability on a property; for example, a mortgage or a special condition on the use to which it may be put (e.g. easements, restrictions and reservations).

The difference between your mortgage and your property’s value. If your home is worth $400,000 and you owe $150,000, then you have equity of $250,000.

The removal of a person from a property.

A formal legal process that creates a binding contract for the sale of real property on agreed terms. The vendor and purchaser each sign a copy of the sale contract and then exchange these documents, after which time the contract becomes legally binding on the parties. The parties are then bound to proceed to settlement, subject to any cooling off period that may apply. A deposit is usually also paid by the purchaser to the vendor during the exchange process. Any party that unilaterally declines to proceed to settlement may forfeit deposit monies or be subject to a damages claim.

This refers to an “existing” property, as opposed to one that is “off-the-plan” meaning not built yet.

An agreement extending or renewing the terms of a lease for a period beyond the expiration date.

The local Council formally agrees that a home is complete, all monies owing to them have been paid, and the home is ready to be lived in.

Installed items that may be removed from real estate without causing irreparable damage to the land, structure or use of the premises.

An interest rate that remains unchanged for a set period, for example, for the whole term of the loan, or the first year of a loan.

Those parts of a property affixed to structures or land, usually in such a manner that they cannot be independently moved without damage to themselves or the property housing supporting or pertinent to them. Fixtures are usually included in a sale and commonly include items such as carpets and awnings.

Removing the right, title and interest of the owner of a property or asset, usually due to a default of due payments.

An Australian Government entity that reviews foreign investment proposals and advises Government on foreign investment policy.

The increase on your investment relating to capital returns, and not including historical distributions.

Where the vendor agrees to sell a property, but then sells it to another party on more favourable terms.

The strategy of borrowing money to purchase a property, otherwise known as “leveraging”.

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.

This is calculated by “Historical Capital Growth %” / Loan-to-Value Ratio (LVR)

A consumption tax imposed by the Commonwealth levied on the provision of goods and services.

A period when a mortgage payment or other debt becomes past due and before it goes into default.

This is the ratio of a real estate investment to its monthly rental income before expenses such as property taxes, insurances and property management.

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

A person who undertakes to fulfil a contract if the main party defaults.

When all work on your new property is complete, the local Council is happy everything has been completed correctly, and you have paid all monies owning to them and the builder, then a tenant is ready to move in. The builder will go through a “handover” where someone will be shown through the house, checking that everything is to the standard expected.

The average rate of growth per year over the past 5 full years for all units in the suburb. Based off the sum of the previous 5 full years of suburbs growth for all units and divided by 5 to find the average over the 5 full years.

An amount given by a buyer to the estate agent acting for the seller. It shows the buyer's serious commitment to the property and is commonly 10% of the purchase price.

A single, self-contained place of residence detached from other buildings. A house generally consists of enclosing walls with a roof to shelter occupants against both climate and intruders

The general increase in prices and fall of the purchasing value of money over time.

Sound Property takes free bookings for Property Information Sessions for groups of 10 or more on the basics of investing. Sessions in the past have been conducted for corporates, associations, etc.

The payment made by a borrower to a lender in return for the loan of money, in addition to the principal repayments.

An interest only loan is a loan where only interest payments are made on the loan.

The rate of return earned on an investment, or charged by a lender, expressed in the form of a percentage per annum.

This is a metric used in capital budgeting measuring the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

The action or process of devoting money with the projected outcome being profit.

This is a service which includes identifying the next investment hotspots for capital growth and rental returns, market research, due diligence and inspections, settlement assistance, property management and on going annual portfolio reviews and support.

Property (land or a building - or part of a building - or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both. Property Investment can come in many forms. The purchase of an existing home, buying off-the-plan, buying land and building a house, or subdividing and building two, renovation projects, etc.

The ownership of land in common by several persons where there is a right of survivorship i.e. where on the death of one joint owner the land as a whole vests in the survivors.

A tax payable annually in respect of the beneficial ownership of land, the rate of which is determined by the assessed valuation. Usually based on unimproved value of land.

The owner of leased property. The lessor.

As a Landlord, this protects you against things like: deliberate damage to your investment property or theft from it, by the tenant or their guests (over and above their Rental Bond), loss of rent if the tenant does not pay you on time and in full liability, including for a claim against you by tenant, and legal expenses if you have to take action against a tenant.

An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time.

The period of the lease.

Possession and use of a property by virtue of a lease.

Solicitor fees, buyers agent fee if applicable, or any other relevant fees associated with a professional advising or helping with the procurement of the property.

Usually required by lenders when you are borrowing more than 80 per cent of the property’s value. It provides insurance to the lender in case the borrower defaults on the loan.

A person / legal entity who receives the right to occupy and use a property under the terms of a lease.

The owner of a property who transfers the right to occupy and use property to another by way of a lease agreement.

Being legally responsible for the asset

A Licensed Real Estate Agent may perform the activities in the conduct of a real estate business. He/she is licensed to hold responsibility for an agency’s legislative compliance activities.

The availability or ease of turning an asset into cash.

(a) A term commonly used by agents for obtaining an instruction to sell or lease real estate; (b) The recording of properties as being available for sale.

A facility available from financial institutions that gives you a credit limit that you can draw down at any time. It’s similar to a credit card, except you don’t have to make set repayments of the principal.

Relatively new, these are loans that don’t require as much documentation to set up the loan. They are popular with self-employed people and those who have not yet established a credit rating.

Your Loan to Value Ratio (LVR) is calculated by dividing the loan amount by the value of the property, then multiply by 100 to get a percentage. Banks and financial institutions use this as a measure of whether you can afford the loan.

The act of keeping, or the expenditure required to keep, an asset in condition to perform efficiently the service for which it is used.

The price actually paid, or agreed in a contract to be paid, for an asset. It differs from market value in that it relates to an accomplished fact, whereas market value is and remains an estimate until proved. Market price may involve circumstances not normally included in market value.

Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.

The mean price is the average price of all units in a specific suburb for that year. This is the total sum of all unit sale prices divided by the amount of units sold for that year.

The middle number when data is arranged from lowest to the highest in sequence. If there are two median scores, they are averaged to provide the true median. The median is also known as the 50th percentile.

“Median” means “in the middle”. So, with regard to List Price, this means exactly half of the homes are listed above this price and exactly half are listed below. For example: let’s say there are 5 homes for sales in a market at prices of $175,000, $200,000, $250,000, $350,000 and $600,000. The Median Price would be the one in the middle, or $250,000. Note that this is not the same as “average / mean price”.

The process by which a third party assists two disputing parties to reach a mutually agreeable solution. A recommendation made by the mediator is not necessarily binding on the parties.

Documentation of a property loan. Security over real property to ensure payment of a debt or performance of an obligation.

Paid by the borrower to protect the lender against failure by the borrower to keep up mortgage repayments or to pay back the loan in full when it is due.

Financier who lends money against property as security.

Sale of a property where, in the case of a default of payments by the mortgagee, the mortgagor can sell the property over which the mortgage has been held.

One who owns an interest in real estate and who executes a mortgage on that interest as security for a loan or for the advance of credit.

This is a form of financial leverage where an investor borrows money to invest and the gross income generated by the investment is less than the cost of owning and managing the investment. An investor can claim the loss of the income on their personal income tax and receive the benefits that it may provide them such as lowering their taxable income bracket

Projected based on the following assumptions: Gross Rental Income assumes the property will be tenanted for 100% of the year and at the current rent amount. Property Expenses are calculated based on most recent bills and expenses including water rates, council rates, maintenance, property admin fees, landlord insurance, strata fees, etc. Interest payments are based on each specific property’s loan terms.

The yield on an investment after the deduction of expenses, expressed as a percentage. Calculated as the annual return on an investment (ROI) after relevant expenses divided by the asset price

The notice given by either the landlord or tenant that they want to end the rental agreement and vacate the property in compliance with the terms and conditions of the lease.

When you make an offer to purchase a property, you sign one of these forms. When the owner accepts the offer, it becomes a binding contract.

This is buying an apartment that has not been built yet. You can review the design and building plans, but the building may not be entirely built yet. This is commonly used for apartments or units under construction or about to be built.

The consideration offered to purchase or lease an asset.

The agreement between an agent and a vendor establishing an Open Listing.

Where a vendor grants selling or leasing rights over a property to any number of agents on a non-exclusive basis. The first agent to procure a buyer ready, willing and able to purchase or lease the property on terms acceptable to the vendor receives the commission. Also known as a Common Listing, Simple Listing or Open Agency.

The expenses incurred in generating income. In real estate, these expenses include, but are not necessarily limited to, property rates, insurance, repairs and maintenance and management fees.

The outstanding debt of a geared property is the principal amount of money owned to the financial entity that issued the loan.

In relation to land, the owner includes every person who jointly or severally whether at law or in equity: (a) is entitled to the land of an estate in freehold possession; or (b) is entitled to receive rent or profits thereof, whether as beneficial owner, trustee, mortgagee in possession or otherwise.

See 'Body Corporate'.

If a property is not sold at auction because the owner’s reserve price has not been reached, it is passed in.

Where a tenant continues to rent / occupy the property after the lease has formally expired.

Approval from the relevant authority to use property for a specified use.

Price on application. You may see this in a real estate advertisement.

Principal place of residence.

This is an indication from a finance institution that they are willing to lend a certain amount of funds to an individual. It is not a formal or final approval as it will always be re-assessed when you submit an actual property as security. Whilst it is not a pre-requisite to start looking for an investment, it does help to tease out your ability to borrow funds and any issues the banks might have with you as a borrower. If you are thinking of investing, speaking to your mortgage broker sooner rather than later can assist with getting the process underway.

A house, building or other structure together with the surrounding grounds that form part of the title.

(a) a term used in lieu of ‘client’ or ‘proprietor’; (b) A licensed estate agent holding responsibility for an agency’s legislative compliance activities including legal responsibility for trust accounts.

The original sum of a loan, before interest in added.

Where an owner offers a property for sale without engaging an agent.

This is a Sound Property program which has been designed for accountants, solicitors, mortgage brokers and financial planners to diversify and add value to their client offering by having an end-to-end property investment solution through the use of the Sound Property team's assistance.

Property values usually follow a cycle of growth, a slowdown, a bust and an upturn. History shows this occurs every seven to ten years.

Property Expenses are calculated based on most recent bills and expenses including water rates, council rates, maintenance, property admin fees, landlord insurance, strata fees, etc.

This is the management of a property on behalf of the owner. For example, the leasing of space, collection of rents, selection of tenants and generally the overall maintaining and managing of real estate properties for clients.

A written contract recording the agreement between the owner and manager of real estate concerning the duties, responsibilities and liabilities of the owner and the manager in the management of that real estate.

The fee charged by the property manager to the landlord for the service of managing a property or properties. This service typically includes collecting rents, paying recurrent property expenses, selecting and supervising property service contractors such as cleaners, plant service providers and security. It may also include negotiating new leases, marketing of the property, rent reviews and overseeing building refurbishment. In respect of property trusts, it refers to the fee levied on unit holders by the responsible entity to cover the cost of trust administration.

A real estate agent authorised to manage the business affairs in connection with the property of another. See also Property Management.

Two or more investment properties owned by the same individual, company or SMSF.

The date the property was settled.

Sale price of property at the date purchased, which can be made up of equity and / or debt.

Periodic property taxes levied by Local and State Governments (e.g. water rates).

The financial institution allows you to “re-borrow” a percentage of what you have paid off your home loan, to use for whatever you wish, such as a down-payment on a new investment property.

To obtain new finance for something on different terms, usually involving the paying off of an existing loan by means of a new (and often cheaper) loan.

A payment made periodically by a lessee to a lessor for the use of premises.

A periodic review of rental under a lease using a predetermined method. For example, an increase in line with Consumer Price Index (CPI) or in accordance with a market valuation.

A valuation report by an independent valuer fixing a rent, in circumstances where a lessor and lessee have been unable to negotiate an agreement.

To terminate a contract of sale.

The minimum amount a seller will accept at an auction.

A risk management tool used by agents to identify tenants with a history of breaching tenancy rules.

Specialist bodies exist in most Australian States and Territories to resolve disputes between landlords and residential tenants in low-cost manner, usually without the involvement of lawyers.

Positive or nil cash flow from an investment.

A mortgage over a residential property owned by a person (usually over 55 years of age), where repayments are not required until the property is sold or the last homeowner dies.

Where a landlord may inspect the premises, provided reasonable notice is given to the tenant.

A numbered plan, held in the Titles Office, showing the dimensions and details of any particular piece of land. A piece of land is sometimes called a “parcel”.

A way of describing a particular parcel of land. For example, Lot 3 on RP 546789 identifies the overall plan number, and then a specific lot number. A plan search at the Titles Office will yield a copy of the sub-divisional plan and dimensions of each lot on the plan.

The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices are at a relatively high level, giving the seller an advantage. An under-supply causing prices to increase.

This is a term used to describe whether you can manage your mortgage payments, based on your income and expenses.

This is the final stage of the sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property.

The date on which a contract of sale is finalised and the balance of money is paid for an asset.

Self Managed Super Fund.

A standard duty levy or tax on the purchase of property. This varies depending on the purchase price and the state in which the property was purchased.

The registered plan of a strata title property showing the boundaries of lots and unit entitlements. Pursuant to legislation on strata or unit titles.

Strata title allows individual ownership of part of a property, where the part ownership will be the individual apartment.

How long the law requires a builder to warranty that the essential structure of the home is, and will remain, sound. The law varies around the country.

A contract whereby the whole or part of the property is let to another person, the party letting being themselves a lessee. The obligations of the lessee to the lessor are not diminished. The length of the sub-lease must not be longer than the unexpired part of the headlease.

A parcel of land divided into individual lots, each with a separate title.

The number of properties on the market at any given time determines the supply-and-demand equation. If there are large numbers of properties on the market, it is a buyer's market. If there are few properties on the market or those that come on to the market sell quickly, then it’s a seller's market.

The measurement and depiction on paper of the boundaries of real estate and the location of the improvements on the land, or measurement of a part of a building, usually undertaken by a registered surveyor.

A form of lease, generally in an abbreviated form. It may be registered on an owner’s certificate of title.

A person or entity paying rent in exchange for the occupancy of a building or dwelling.

Two or more buyers own a property with unequal shares and rights.

The form of ownership of real estate.

Documents evidencing the ownership of property.

A legislatively required bank account where monies are held by an agent for or on behalf of another person eg. deposits, rental, etc.

A Trust’s decision to distribute net income to its unit holders.

Property free and clear of mortgages, restrictive covenants, leases and assessments of any kind.

A statutory concept of value used mainly for rating and taxing purposes, which envisages the land as being in its virgin state but enjoying the benefits of all external factors which influence the value at a given date. The value of land as if all existing improvements thereupon, including site works, had never been built or made, but regarding all other lands as in their current circumstance, including all improvements, roads, services and amenities.

Each dedicated lot / unit area designated within a strata plan.

A trust formed to manage an asset in which investors can buy “units” within the trust to fund the asset.

A rental property or any unit thereof that is unlet.

The vacancy rate in a given area is the available rental properties on the market at any one time divided by the total rental stock in the area. Generally, a market is considered balanced at 3% and anything less is an undersupply. When vacancy rates are low and competition for accommodation is present, rental yields will rise and prices then tend to follow. At a vacancy rate of 3% an investor could expect around 1-2 weeks vacancy a year (52 x 3%). Vacancy Rates are just 1 of Sound Property's 15 Key Investment Drivers - you can learn about the other 14 on the "Investment Agency" page of our website.

In real estate this refers to a right to possession of land or built-up property in respect of which there is no current occupant.

To give up occupancy; to make vacant; move out of property.

(a) The process of estimating value; (b) The prediction of the value of an asset at a point in time, depending on the purpose for which the valuation is required.

A document that records the instructions for the assignment, the purpose and basis of the valuation, and the results of the analysis that led to the opinion of value. A Valuation Report may also explain the analytical processes undertaken in carrying out the valuation, and present meaningful information used in the analysis. Valuation Reports can be either oral or written. The type, content and length of a report vary according to the intended user, legal requirements, the property type, and the nature and complexity of the assignment. The terms, Valuation Certificate and Valuation Report, are sometimes used interchangeably.

A person who is a member of the Australian Property Institute who is accredited as a Certified Practising Valuer and can therefore carry out property valuations under any State, Territory or Commonwealth legislation.

An addition to, omission from, or alteration to a contract or to the contract conditions.

One who sells anything. In real estate transactions, the person(s) or entity selling the property.

This refers to instances when a property owner is prepared to offer a buyer finance or other assistance such as staged payments to assist with the purchase of the property (also known as ‘wrapping’).

An agreement which can be made void at the option of one or both of the parties.

SMSF (Self Managed Super Fund) trustee or company that has, or is controlled by: a person of wholesale status. The person in this case must have earnings of at least $250,000 for the previous two financial years OR net assets of at least $2.5 million. This will require an accountant’s certificate as verification. OR, the SMSF controls $10M or requires products or services with a value exceeding $500M.

The total return by an investor on an investment, shown as a percentage of the amount invested. For example, any rental yield, plus any tax advantages you may gain through negative gearing, and any capital gain, less any tax owing on that gain. Property investments in a new property offer numerous benefits over an established property, including valuable tax deductible depreciation advantages and lower transaction costs when purchasing house and land packages, apartments, town houses and real estate/property.

A local planning tool to control the present and future development of land including residential, business and industrial uses.