Property Investment Glossary

The legal entity made up of all lot owners in a strata-titled property that manages shared areas and common property.

A refundable payment made by a tenant at the start of a lease, held as security against damage or unpaid rent.

Tax payable on the profit when you sell an investment property for more than you paid.

The increase in a property's market value over time.

A tax deduction for the construction cost of the building structure itself, claimed at 2.5% per year over 40 years.

The net amount of money moving in and out of your property investment after all income and expenses.

The legal process of transferring property ownership, typically handled by a solicitor or licensed conveyancer.

A tax deduction for the wear and tear on a building and its fixtures over time.

A report prepared by a quantity surveyor that lists all claimable depreciation deductions for a property.

The difference between your property's current market value and the amount you still owe on the mortgage.

A loan where you only pay interest for a set period, without reducing the principal balance.

An annual state government tax on the total taxable value of investment land you own, excluding your principal residence.

A specialised insurance policy that covers risks specific to renting out a property, including tenant damage and loss of rent.

A legally binding contract between a landlord and tenant that sets out the terms and conditions of a rental arrangement.

The percentage of a property's value that is funded by a mortgage loan.

When the costs of owning an investment property exceed the rental income it generates.

A transaction account linked to your mortgage where the balance reduces the interest charged on the loan.

Removable assets within a property, such as carpets, blinds, and appliances, that can be depreciated for tax purposes.

When an investment property's rental income exceeds all ownership costs, producing a net profit.

A licensed professional who manages rental properties on behalf of the owner, handling tenants, maintenance, and compliance.

Replacing your existing mortgage with a new loan, typically to get a better rate, access equity, or change loan features.

The annual rental income from a property expressed as a percentage of its value.

The total return from an investment property expressed as a percentage of the money you actually invested.

A lender's assessment of whether you can afford to repay a loan based on your income, expenses, and existing debts.

The legal process of transferring property ownership from seller to buyer and finalising the financial transaction.

A state government tax paid when you purchase a property, calculated as a percentage of the purchase price.

A form of property ownership where individual lots (units, apartments, townhouses) share common property managed collectively.

An expense you can subtract from your assessable income to reduce the amount of tax you owe.

A regulated bank account where a property manager holds rent and bond money on behalf of landlords and tenants.

The percentage of time a rental property is unoccupied and not generating income.