Terminology You Should Know When Buying, Selling Or Investing in Real Estate
Common Property Terminology you need to know when selling, buying or investing in real estate.
For newcomers to property investing or home buying, the jargon can get slightly confusing. I have compiled some commonly used words and terms to help you on your property journey.
Cash flow positive:
This is when you have a cash-flow positive investment where the incoming are more than your outgoings after tax-deductible items have been claimed. 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.
C.G.T:
Capital Gains Tax is the tax you pay when you sell an investment property and you have made a profit.
Cooling Off Period:
This is the period of time given to purchasers to legally withdraw from buying a property. The length of time varies in each of the …
This morning at the health club, I ran into one of my long time friends, and I asked him if what I read in the newspaper was true. The paper reported that the bank where he is chairman was sold to a much larger institution. He confirmed that it’s true, and needless to say, a bunch of his cash is going to be made available to him in the near future. I asked him what he planned to do with some of that cash, and he told me he was planning to get into the short-sale game and start finding houses that he could buy, fix, and flip – or hold – depending on the circumstances.
In this economy, if you’re a residential agent trying to carve out a living selling houses and ignoring an opportunity to sell rental income property, then you’re like one stranded on a roof top in a flood who turns away a helicopter rescue because you’re waiting for a boat.
The biggest mistake of all, which is buying a store-bought lease or one free off the internet, is trying to modify that. I guarantee you that those leases are going to favor the tenant. This lease will favor you, the owner.
The last time you had read about real estate investing, you had discovered that there are 5 steps to make profit while playing the real estate game. Although the whole process seems quite easy, it really isn’t so. The real estate market is so unpredictable, thus you can easily lose your money rather gain profits. After having explained what should be done to gain in this market, here are some statements you should never believe in if you want money flowing in your pockets rather than out of it.