If you are first-time property investor and have no idea what is the meaning of “Base Lending Rate”, “Mortgage”, Sub-Let and so forth that your property agent always said, feel embarrassed right?
Hence, in order to communicate well with your property agent as well as succeed in property investment field, this is the article that you shouldn’t missed as we will explain all of the words that often use in property investment line.
|1||Capital Appreciation||The increase in the value of your investment property|
|2||Capital Gains||The profits from the sale of property they’ve invested in|
|3||Real Property Gains Tax (RPGT)||A tax that you have to pay when you disposal of a property within five years after buying it.|
|4||Deed||A document stating the owner or owners of a property|
|5||Strata Title||A Certificate of ownership for residents that share the building with others e.g. apartment, condo or town house owners|
|6||Certificate of Fitness for Occupation (CFO)||A document of local authority stating that your property is safe for staying|
|7||Sub-Let||A person rent a property and re-rent out certain parts of it to other tenants|
|8||Refinancing||It usually involves repaying the current home loan/ mortgage loan and obtaining another loan from another institution.|
|9||Keepers & Flippers||Keepers are people who buy a property for personal use for long term period of time;Flippers buy a property, renovate/ decorate it, and re-sell to other buyer to make profits.|
|10||Term Loan||A loan structure whereby the monthly loan instalment is fixed|
|11||Disbursement Fees||Any small costs that involved when you’re get a loan processed by the bank and your solicitor, including things like bankruptcy search fees and land search fee.|
|12||Foreclosure||The process whereby a property owner failed to pay the loan and defaults, and the bank is taken back the property.|
|13||Overdraft Facility||A type of loan repayment whereby the amount repaid is not fixed and the interest is calculated on the amount of loan left on a certain days|
|14||Mortgage||The act of using your house as a guarantee to the bank in order to secure a loan|
|15||Base Lending Rate (BLR)||The minimum interest rate that the banks offers to the borrowers. It’s usually expressed as a negative number.|
Once you understand the above words that often use in property line, you are good to go for your property investment journey.