Hi Investor, take a look at terminology below, hope it enriches you.

Organizations/People
QS : Quantity Surveyor
PM : Property Manager
REA : Real Estate Agent
BA : Buyers Agent

Renovating/Building
STCA : Subject To Council Approval
Reno/Rehab : Renovation

Investing
B&H : Buy & Hold (you buy a property and don’t sell it, thus ‘hold’ it)
CF101 : Cash flow 101 (the game)


Comps : Comparables (properties of a similar size, condition, and area to yours. A way of valuing your property)
FHOG : First Home Owner’s Grant (A monetary grant available to First Home Owners)
Flip : (where you find a property at well below market value and either pass it on to an investor for a finder’s fee or higher price)
FMV : Fair Market Value (what the market thinks the property is worth)
IP : Investment Property
LO : Lease Option (You offer someone the option of buying a property. They place a deposit and then rent from you. At or before the option term, they can choose to buy at the preset price. If they choose not to buy, you keep the deposit)
OPM : Other People’s Money (this could be the banks, a partner’s, or anyone’s. A way for you to get ahead faster)
OPT : Other People’s Time (this could be the banks, a partner’s, or anyone’s. A way for you to get ahead faster)
OTP : Off The Plan (You buy a place before it has been built. You settle once the property is fully constructed)
PPPPPPP: Prior preparation and planning prevents piss poor performance
PPR/PPOR: Principal Place of Residence (Tax term for when you own, not rent, the place you live in)
SANF : Sleep At Night Factor (Conscience and risk profile)
UCV : Unimproved Capital Value (The value of the property before you increase the CG)
Wrap : Wraparound Mortgage (You own a place and sell it on a hire/purchase scheme)

Finance
CF : Cash flow (The income stream from a property, i.e. cash flow +ve is cash in your hand. Cash flow –ve is a negatively geared property)
CG : Capital Growth/ Capital Gain (This is the increase/decrease in price. Like cash flow, this can be negative or positive)
CGT : Capital Gains Tax (The tax you pay when selling a property)
DSR : Debt To Service Ratio (How much your loans are over your income)
Equity : (The amount money the property is worth, minus any outstanding loans)
GST : Goods and Services Tax (Australians pay 10% tax on just about everything. You can’t claim it back for property expenses, but you can for other things)
IRR : Internal Rate of Return (A method of calculating how much money you’ll make on a deal)
IO or I/O: Interest Only (On a loan, you only pay the interest portion every month. At the end of the loan term, you still owe the full amount)
LMI : Lenders Mortgage Insurance (Something the bank takes out on your loan to insure itself. At high LVRs, you pay the premium. Happily, you only have to pay once)
LOC : Line Of Credit (A loan that looks like a credit card. Secured against a property, you have a limit, and only pay interest on the current outstanding balance)
LVR : Loan To Value Ratio (The size of the loan over the value of the property. $50,000 loan secured against $100,000 property equals a LVR of 50%
NPV : Net Present Value (How much the property is worth now)
P&I : Principle & Interest (On a loan, each month you pay both an interest and repay some of loan. At the end of the loan term, you owe 0)
PA or p.a.: per Annum (Each Year)
ROI : Return On Investment (A method of calculating how much money you’ll make on a deal)
xcoll/xcollat/xcolled: cross-collateralize, cross-collateralization, cross-collateralized etc (A situation in which the bank uses multiple properties as security for one loan)


Computer/Internet
BTW: By The Way
FAQ: Frequently Asked Questions
FWIW: For What It’s Worth
FYI: For Your Information
IMHO: In My Humble Opinion
LMAO: Laugh My A*** Off
LOL: Laugh Out Loud
ROFL: Rolling On Floor Laughing
ROFLMAO: Rolling On Floor Laughing My **** Off
TLA: Three Letter Acronym

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